MT Capital Report: Comparative Analysis of Origin and Olympus DAO
2024-05-08 16:23:48

In the entire blockchain space, the pace of the DeFi track has always been fast. The strong liquidity advantage and immense traffic make the self-iterative nature of DeFi particularly prominent. As we know, DeFi 1.0 was characterized by the short-term incentive model of liquidity mining. Drawing from the worldview of traditional financial markets, DeFi 1.0 achieved decentralization in the central banking world (such as MakerDAO), the commercial banking sector (such as money markets Aave and Compound), and non-bank financial institutions (such as trading platform Uniswap, aggregator
Looking back to 2021, it was the era of global mask-wearing, and our team obtained information about Olympus DAO in late February. After two weeks of in-depth analysis, we formulated an investment decision and plan. At the beginning of the project, we entered the whitelist and built positions in the secondary market, investing a total of 150,000 DAI, with an average holding price of OHM at $20.6. We started selling OHM when the price exceeded $800, ultimately realizing nearly 50 times the profit. Therefore, whenever we discover similar projects, our team is filled with passion and even excitement.

First, let's outline the relevant mechanisms of Olympus DAO to better understand its economic architecture and operational logic.
Drawing from the worldview of traditional financial markets, DeFi 1.0 achieved:
Central banking in the decentralized financial world (such as MakerDAO)
Commercial banking sectors (such as money markets Aave and Compound)
Non-bank financial institutions (such as trading platform Uniswap, aggregator
Representative projects include MakerDAO, Compound, Aave, Uniswap, Sushiswap, and However, the drawbacks of 1.0 are also prominent, as short-term incentives led to some liquidity providers excessively exploiting projects and protocols, even accelerating their demise.
Subsequently, the development of DeFi has unfolded along two directions:
Unlocking the potential of credit
Improving capital efficiency
In this context, the concept of DeFi 2.0 emerged. DeFi 2.0 has changed the relationship between protocols and liquidity providers through new mechanisms, ultimately restructuring liquidity services themselves. Among these projects is the representative project: OlympusDAO.
Olympus Protocol is a decentralized finance (DeFi) system, with its native token OHM, starting at an opening price of $4 and quickly rising to nearly $1300, with a total market capitalization of $4.3 billion. Although more than two years have passed, the market capitalization of OHM has dropped from $4.3 billion to $189 million, and the price of OHM has also fallen to around $12. Olympus has also had a glorious record. Next, I will summarize and analyze the narrative of Olympus DAO for everyone.

Introduction to Olympus Algorithmic Non-Stablecoin Mechanism:
The native token of the Olympus Protocol, OHM, aims to become a value-stable reserve currency but is defined as an algorithmic non-stablecoin. This means that the price of OHM is not forcibly pegged to $1, but rather adjusted based on market supply and demand and protocol mechanisms. This allows the price of OHM to float freely, unrestricted by hard anchoring.
Unlike OHM, which is an algorithmic non-stablecoin, Luna token is defined as an algorithmic stablecoin. Luna and UST have a 1:1 hard anchoring protocol. Regardless of the market price of Luna, it is anchored by 1UST. The annualized yield of UST is only around 20%, and the hard anchoring protocol has led to a death spiral for Luna, as we all know. The $40 billion market capitalization of Luna went to zero in two days, single-handedly wreaking havoc on the entire industry and initiating a bear market in the crypto world.
Compared to algorithmic stablecoins aimed at controlling the price at $1 USD (such as stablecoins) or stablecoins directly pegged to the dollar (such as USDT/USDC), the stability mechanism of the Olympus Protocol is that it only promises that 1 OHM will be backed by 1 DAI as a reserve. Therefore, the price of OHM can fluctuate freely, unrestricted by the $1 anchor.
The economic structure and operational logic of the Olympus Protocol rely on three main pillars:
Reserve Pillar Establishes Purchasing Power
Liquidity Pillar Promotes Accessibility
Utility Pillar Increases Availability
Reserve Pillar (Bonding):
The reserve pillar increases the treasury reserves of OHM by locking in users' assets, thereby supporting the value of OHM. Users associate specific assets with the Olympus protocol, which are locked into the protocol as risk-free value asset reserves. In return, users receive OHM tokens, and Bonding mints OHM at a price lower than the market price based on supply and demand algorithms. This process is similar to ultra-short-term zero-coupon bonds, with the protocol linearly releasing OHM to users within a 5-day exercise period.
Staking and Rebase
The Rebase mechanism aims to adjust the token's value by automatically increasing or decreasing the supply, theoretically achieving stability. When used in conjunction with Staking, Rebase rewards are typically allocated to Staking users. Even if the total supply of tokens increases, since these additional supplies are primarily allocated to Staking users, the circulating supply may not necessarily increase.
For Olympus, pledgers stake their OHM in the protocol to receive sOHM and earn so-called "rebase rewards" through staking. If the market value of OHM is higher than the target value, the rebase mechanism increases the number of OHM and distributes these additional OHM to participating
Stakers. The APY of these rewards has reached over 8165% at times. These rewards are intricately linked to Bonding.

Project Analysis: Summary of the Operational Mechanism Highlights of the Olympus Protocol:
Why Can OHM, Endorsed by Only 1 DAI, Surge to Over $1300?
Protocol Controls Liquidity Instead of Liquidity Mining: Users purchase OHM from the protocol at a discounted price by trading with LP Tokens or other single-asset assets such as DAI and wETH. This process, known as Bonding, consists of liquidity bonds (for LP Tokens) and reserve bonds (for single-asset assets). Bonding is an important way for the OlympusDAO protocol to own and control liquidity.
Counter-Human Arbitrage Mechanism: Olympus has established a counter-human arbitrage mechanism by minting OHM at a price lower than the market price through the sale of Bonding, encouraging users to purchase discounted bonds. This mechanism attracts a significant amount of capital participation, providing the protocol with initial funding momentum and mitigating the risks that third-party liquidity providers may bring.
Staking and Rebase: Olympus adopts Staking and Rebase mechanisms, with the ultra-high APY rewards obtained through Staking attracting more users to participate in the protocol. The Rebase mechanism adjusts the supply of OHM based on market demand, thereby affecting the price of OHM. This mechanism effectively encourages users to stake and hold OHM.
Nash Equilibrium (3/3) Game Theory: In the OlympusDAO protocol, users' three behaviors and the benefits generated are as follows: STAKE (+2), Bonding (+1), Sell (-2). STAKE and Bonding have positive effects on the protocol, while Sell does not; both STAKE and Sell have a direct impact on the price of OHM, while Bonding does not. Olympus adopts a marketing strategy based on (3/3) game theory, making Staking a natural choice and attracting more investors to participate. This further increases demand for OHM, driving its price up.

After analyzing the Olympus mechanism, today I want to introduce a "protagonist" called Origin.
There are two different explanations for the origin of this project. One is that it originates from the dark web, and the identity of the project team is still unknown. The other explanation is that it is a product developed by the Olympus technical team. Regardless of which version, we have verified through relevant channels that information from the dark web confirms the former explanation. However, we currently cannot verify whether the technical team originated from the Olympus technical team.
Based on industry experience, projects released on the dark web usually have outstanding performance in the industry. However, regardless of the origin, excellent projects still need a complete economic model and operational structure to support them. So, what is the story behind Origin? Let's analyze it in detail.
Origin Algorithmic Non-Stablecoin Introduction:
Origin, based on the algorithmic non-stablecoin LGNS, is a DeFi 3.0 protocol aiming to build the world's first privacy-centric stablecoin payment ecosystem and establish a global financial benchmark to guide future financial development. Here are some key points:
Privacy-Centric Stablecoin: Origin aims to achieve stable and predictable currency issuance, allowing individuals to issue algorithmic non-stablecoins and mint them into privacy-centric stablecoins. This means users can create and use stablecoins with privacy features.
Everyone is an Issuer: Origin introduces the concept of "everyone is an issuer," which means individuals have the opportunity to issue their own anonymous stablecoins, rather than just being issued by central banks or other financial institutions.
Overall, Origin seems to aim at providing an open and privacy-preserving currency issuance and payment solution, enabling more people to participate in and control the process of currency issuance while maintaining currency stability.

Similarities between Origin and Olympus in Underlying Operational Logic:
LGNS is the native token of Origin, a freely floating coin supported by specific mainstream crypto assets. Referred to as an "unstable" algorithmic stablecoin, users can acquire LGNS through two channels:
Purchasing on the secondary market: Buying LGNS on decentralized exchanges.
Bonding purchase in the Origin protocol (equivalent to the primary market): Bonding can be divided into two types:
Reserve bonds
Liquidity bonds
The Origin protocol allows users to deposit specific mainstream crypto assets in exchange for LGNS at a discounted price, which is linearly released within 5 days.
Debt supply mechanism:
Regulated through the bond supply mechanism: The supply of LGNS is regulated based on reserve assets. For each LGNS minted, the protocol is backed by 1 USDT. When the price of LGNS is below 1 USDT, the protocol will repurchase LGNS with reserve assets and destroy them until the price exceeds 1 USDT. There is no upper limit to the price of LGNS, theoretically capable of infinitely exceeding $1 USDT.
Users stake LGNS and receive LGNS rewards every 8 hours, resulting in 3 earnings distributions within 24 hours. The compounding annualized yield in coin terms can reach up to 79 times.

Differences in Economic Models Between Origin and Olympus DAO:
1、Solutions to High APY and Dumping Issues:
Both OlympusDAO and Origin protocols face the challenge of addressing high APY (Annual Percentage Yield) and dumping, but they employ different methods to tackle this issue.
Solution by OlympusDAO Protocol: The core idea of OlympusDAO is that after the price of OHM falls close to 1 DAI, the protocol intervenes with buybacks to ensure the stability of its reserve asset. However, in reality, the OHM price often struggles to reach 1 DAI, so this mechanism primarily serves a conceptual rather than practical role in supporting the price.
Solution by Origin Protocol: The Origin protocol employs three intervention mechanisms to prevent significant token price declines. Specifically:
Treasury Reserve Protocol Buyback Mechanism: The Origin protocol uses USDT as reserves. When the price of LGNS token exceeds 1 USDT, the protocol mints and sells new LGNS tokens; when the LGNS price falls below 1 USDT, the protocol buys LGNS from the market, burns non-stablecoin LGNS tokens, and mints anonymous stablecoin A.
Circuit Breaker Protection Mechanism: If the price of Origin token falls by more than 50% within a single trading day, the protocol initiates a buyback mechanism, burns non-stablecoin LGNS tokens, and mints anonymous stablecoin A.
Supply and Demand Mechanism: The Origin protocol drives demand for anonymous payments and anonymous transaction scene ecosystem development, implying increased demand for anonymous stablecoin A. Among these, 70% of the revenue on the Origin platform is planned for buying back LGNS tokens, burning non-stablecoin LGNS tokens, and minting anonymous stablecoin A.
These three methods are all approaches by Origin to address the dumping issue, but they employ different mechanisms. OlympusDAO relies on market self-regulation, while the Origin protocol intervenes in the market through buyback and burning to maintain token price stability.
2、Different Approaches to Consensus Mechanism Design:
Olympus DAO appears to focus on its (3/3) consensus mechanism but lacks a community promotion mechanism. Without strong community consensus support, the protocol may struggle to maintain long-term market momentum.
On the basis of Olympus DAO's (3/3) consensus mechanism, the Origin protocol has devised a series of innovative methods to address early-stage community consensus issues, enhancing community cohesion and user engagement. Here are some methods and mechanisms adopted by the Origin protocol:
Bond Sales Incentives: The Origin protocol establishes a bond sales incentive mechanism.
Cobweb System Rewards: The cobweb system is part of the Origin protocol, providing a reward mechanism that encourages active participation by users in different levels and roles within the protocol.
DAO Pool Rewards: The Origin protocol also sets up DAO pool rewards, meaning users can earn rewards by participating in the protocol's governance process.
More Gameplay: In addition to the above incentive mechanisms, the Origin protocol introduces more gameplay, such as FOMO POT lottery and trading turbocharger mechanism. These additional features can attract more users and increase protocol trading activity and community user stickiness.
3、Different Concepts of Deflationary Mechanisms:
The operational mechanism of Olympus DAO seems to only include unlimited inflation and infinite minting of OHM, without implementing a deflationary mechanism. This could be a fatal flaw in the mechanism because the unlimited supply of OHM and inflation may have negative impacts on the stability of the protocol.
The deflationary mechanism of the Origin protocol is an innovative solution. Here are the main features and operation of the deflationary mechanism of the Origin protocol:
The Origin protocol introduces two tokens, namely the algorithmic non-stablecoin LGNS and the privacy anonymous stablecoin A.
Users can use the algorithmic non-stablecoin LGNS to mint the privacy anonymous stablecoin A. The minted LGNS will be injected into a black hole for burning, and the increasing demand leads to greater deflationary burning, thereby increasing the scarcity of the tokens.
Four, Differences in Ecosystem Development Strategies:
Currently, the ecosystem development of Olympus DAO seems relatively singular, mainly relying on the profitability of the credit business sector.
The lack of a diversified ecosystem can make the protocol more vulnerable, with the actual support for the three pillars of the Olympus architecture (enhancing usability) facing deficiencies.
The current strategic planning of the Origin ecosystem seems quite ambitious, and implementing even 50% of it would be remarkable. Specifically, in the ORIGIN1.0 stage, using the algorithmic non-stablecoin LGNS as the traffic entrance, initiating the gathering of the entire ecosystem's traffic, establishing the cornerstone of the global decentralized financial ecosystem, and laying the foundation for subsequent privacy public chains/cross-chain transactions/decentralized exchanges/lending protocols/gateway protocols/WB3 social/metaverse finance. From this perspective, ORIGIN starts from the bottom consensus layer, the upper application layer, and the ecosystem layer, transforming each critical layer of decentralized finance, creating a comprehensive, multi-level, interconnected Web3 digital financial metaverse system.
Project Analysis: Conclusion
Overall, Origin and OlympusDAO both have unique innovations in the DeFi field. Origin has built a diversified financial ecosystem on the basis of OlympusDAO and opened up a new field of privacy stablecoins, attracting widespread attention. In contrast, OlympusDAO has supported the development of decentralized banking through the innovative support of the POL protocol.
Finally, we believe that the stablecoin field is a challenging track, but both Origin and OlympusDAO have proposed excellent ideas. We respect the developers of OlympusDAO and admire the concept of privacy anonymous stablecoins from Origin. Origin is bravely implementing many innovative initiatives that many people want to do but dare not try.
Additional links:
Deep web link: http://w3qvi6zoryvahcvmojolyj64ra33ealb4adf2a5t3o4bcivyrwfeorad.onion
Official website link:
Community Twitter:
Community Medium:
Community YouTube:
US Community Telegram Community:
Community Telegram Subscription number:
Community DIS:
ORIGIN Eternal Contract:
ORIGIN Fearless Contract:
ORIGIN Information Tree:
Global recruitment system connection:
Chinese community information: