I blogged about benefitting from the Learn and Earn program offered by Cake DeFi and this reader advised me to take a look at Olympus DAO and KlimaDAO when I was ready to step outside my comfort zone and try out something more advanced. So here's me taking notes about these two avenues.
1) Aims to address the myth that stablecoins like USDC and USDT are not subjected to volatility. Reminds users that stablecoins are pegged to the American dollar, which means that their value drops whenever the dollar plunges in value. To counter this risk, Olympus has created its own free-floating reserve currency, OHM, that is backed by a basket of assets. This shift in focus to supply growth helps OHM maintain its market value, regardless of the treacherous storms of the crypto space.
2) Each OHM is backed by 1 DAI instead of being pegged to it. This means that Olympus mints and sells new OHM when it is trading above its price floor of 1 DAI and buys back and burns OHM when it is trading below that. This is the mechanism by which OHM maintains its price stability.
3) You can choose to participate in the Olympus DAO by bonding. Bonding involves you selling DAI to the treasury and receiving OHM in return. If you assimilate seamlessly into the Olympus space, you can choose to stake OHM alternatively. Staking involves the reduction of the OHM supply on the open market, thus creating value for the protocol. Staking yields insanely high returns, it seems. Just look at the screenshot below.
1) Klima aims to fight climate change by inducing the price appreciation of carbon assets. When carbon becomes more costly, industries will have no choice but to resort to sustainable low-carbon and carbon-removal technologies so as not to fall prey to its exorbitant price.
2) Each KLIMA token is backed by 1 tonne of tokenised carbon removal also known as carbon credits. These environmentally friendly carbon credits are sourced from reliable and reputable carbon markets before they are tokenised with integrity to alleviate the risk of double-offseting. The carbon credits are then removed from the market and introduced into the Klima system via a Bonding mechanism.
3) You can immerse yourself in the Klima ecosystem by buying Klima tokens, whereby carbon units are bonded over a predetermined vesting period. Similar to Olympus, you can jump on the staking bandwagon and hold Klima tokens for the long term as this empowers you to benefit from the rising price of carbon. Once you stake your Klima tokens, sit back and enjoy the dividends generated through Bond sales. What about its mouthwatering returns? Here you go!
My Personal Thoughts
Woah! Here I am, smugly congratulating myself about the high returns offered via liquidity mining at Cake DeFi. But it seems that Olympus DAO and KlimaDAO take the cake. But if I may be entirely honest, such sky-high returns actually make me rather uncomfortable. It seems a bit surreal, if you get what I mean. Rationally, I know that these DAOs are legitimate and offer users a great way to build their wealth, but emotionally, I don't think I will dare to take the plunge anytime soon. What about you guys?