Olympus DAO collaborates with Balancer Labs, but OHM continues to slide

Key Takeaways:

• Olympus DAO has collaborated with Balancer Labs to set up its native asset OHM as a liquid asset.
• However, OHM prices continue to freefall.

NEW DELHI (CoinChapter.com) — DeFi protocol Olympus DAO has partnered with Balancer Labs to introduce its native token OHM as a liquid asset within Balancer’s network. CopperLaunch, a platform for token launch auctions, and Prime DAO would facilitate the partnership by adding OHM as a collateral token.

Prime DAO is a platform that builds coordination tools for DeFi projects.

As per Copper’s announcement, the addition of OHM would allow Olympus-related projects to use Copper as a platform to launch their Liquidity Bootstrapping Pool (LBP). In detail, an LBP is a contract that manages a core pool containing tokens for use on an exchange.

We’re excited about the possibility for our protocols to explore further collaborations as Olympus strives to be the reserve currency of DeFi. 

Excerpt from Copper’s announcment.

Meanwhile, Olympus DAO would initially deploy $50 million liquidity to Balancer. The collaboration aims to increase access to OHM via DAI and WETH (wrapped ETH) while lowering the price impact. As such, Olympus DAO decided that an OHM/ETH/DAI – 50/25/25 pool would be the best option for the Olympus community.

Also Read: OHM token rallied 43% while Olympus DAO partnered with Growth DeFi and Angle.

Furthermore, the proposal limits the maximum treasury allocation to pool liquidity at $25 million for OHM and $12.5 million each for DAI and ETH.

Establishing a liquidity pool on Balancer would allow new projects to conduct initial fundraising in OHM denominations using Balancer LBPs. As a result, the collaboration would likely bring more projects to the Olympus ecosystem.

Olympus DAO completes V2 migration

Olympus DAO on Wednesday announced the platform completed its V2 contract migration without any hiccups. The Olympus V2 introduces new features such as on-chain governance, cross-chain capabilities, and auto-staking for bonds.

While OHM and sOHM (staked OHM) remain the same as V1, V2 introduced a new token.

It’s been a month since we announced our V2 migration and we are happy to conclude that the transition has gone well without any hiccups during the contract migration.https://t.co/SX2GrsaChv

— OlympusDAO (@OlympusDAO) January 19, 2022

Olympus V2 would replace wsOHM (wrapped, staked OHM) token with gOHM ( governance OHM). While the new token functions the same, gOHM is set up for on-chain governance.

The announcement also stated that the platform had migrated nearly all of its V1 liquidity to V2 contracts. Moreover, Olympus urged Abracadabra borrowers of MIM to pay their debt by Jan 23 so that the platform could migrate the remaining liquidity.

Also Read: Verasity (VRA) token eyes a 200% uptrend underway.

In addition, the platform has also updated the migration UX/UI based on the feedback from the community to make migration simpler for users. Finally, Olympus has also updated the V2 bond structure to include auto staking capabilities.

Olympus’s OHM Token Continues Falling

Olympus DAO’s native token OHM continues its downtrend that began in late Oct. Furthermore, OHM prices have fallen over 92.5% from their ATH of $1,452.

It seems traders triggered a series of liquidations that have taken OHM prices down by over 47% over the last week. Moreover, the Olympus DAO token’s prices have pared nearly 70% in Jan alone.

Meanwhile, Olympus DAO’s TVL has dropped as well. According to data from DeFillama, Olympus’s total value locked has fallen by 75.7% from its ATH $4.81 billion on Nov 24 to reach $1.17 billion on Jan 19. Despite the increasing number of new projects and partnerships, OHM prices have failed to recover from their three-month downtrend.

At the time of writing, OHM was trading at $109, down 1.52% in the last 24 hours.