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OHM – Olympus DAO: a source of passive income?

olympusDAO OHM

OHM – Olympus DAO: a source of passive income?

If you’re looking for something that might be a source of passive income that is ‘pure crypto’ and has a lower entry point than some other opportunities such as Strong nodes, then Olympus DAO ($OHM) might be it.

Note that OHM would fall into the ‘intermediate’ level in terms of crypto expertise. Similar to Strong nodes, you need to know about wallets, Metamask security and Gwei/gas fees in order to buy and stake OHM.

It’s also very high risk, which is why I haven’t yet added it to the ‘passive income’ category.

What is OHM?

OHM is an experimental ‘stablecoin’ and I think the first of its kind; an innovative decentralized reserve currency that is a true store of value (backed by a basket of assets).

I first found out about the Olympus project and it’s mammoth APY in July and purchased almost immediately.

Not my best entry point at all as it crashed by more than 50% over the course of the following few weeks 😬. The APY for staking was huge, but not that huge and it took over a month to recover.

Ordinarily, I tend to avoid anon projects/developers as these days there are too many scammers and rug-pullers, however with OHM, the concept and it’s “3,3” game theory (plus the massive APY) was too interesting to miss out on.

And I admit that, on reading the documentation, my expectation when I purchased was that the coin price should drop over time, rather than appreciate (not drop quite so sharply though lol). The general idea being that the huge APY would offset ‘loss’ until stability point was reached.

However as we head into October, three months have now passed and that has not happened.

Actually, the price has went up significantly.

Which is a rather nice thing to happen when you assumed it was going to drop 😹.

I took out my initial at $650 in September to use towards paying back some crypto loans. That price was just slightly more than what I paid in July. And I have approximately the same quantity still staked due to the huge APY.

At this time (2nd October) it’s now almost $800!

Current OHM price: $ 17.78 (via CoinGeko)

So is OHM a good option for passive income?

Er, that’s difficult to say at this point. It has done very well for me over the past couple of months (the first month wasn’t so good!) which is why I’m sharing.

However it is also very novel and experimental and so it only makes up a very small percentage of my ‘passive income’ streams (team is also anonymous which I tend to stay away from, but I liked the sound of this so much I had to have a dabble!).

The good thing is that you can stake a small amount to test the waters (unlike eg Strong where a significant upfront investment is required to create a node). And yes; I might purchase some more!

Overall, it is an extremely interesting project/concept that has the potential to really take us away from relying on fiat currency in any from, such as ‘pegging’ of USDT, USDC etc and one that I very much enjoy being a part of.

More reading

There are lots of interesting articles on OHM mechanics, calculators and they have a highly active community on Discord and Twitter. You can check out the token price on CoinGeko and here are 3 official links to get you started:

Note that there have been a number of ‘forks’ or copies of OHM.

Please do extra research on any you are considering because whilst the APYs are incredible, there have already been some ‘rugs’; a rug is when the developer and/or persons involved pull all the assets and reducing its value to zero…sometimes there are accidental issues that may also be referred to as ‘rugged’ when in reality there was an error in the code eg the fork/copy had made an edit which had a vulnerability.

Either way, lots of $$$ can be lost almost instantly eg like $ASG 😥

Update: Interesting similar / related projects include $TIME, $KLIMA, $MIM, $SPELL, $GRO — these are ‘pure crypto’ plays that don’t need as much initial investment as eg a Strong node. They’re easy enough to get into if you have experience moving crypto about and Metamask (inc custom RPC / changing networks). Like any crypto, these are risky and are relatively new concepts – please do your own research!

Update 2: I now also have $TIME (I didn’t jump in on launch due to the $ASG rug a few weeks before) and I may soon hold some of the others.

Also, staked OHM (sOHM) can now be wrapped into wsOHM which means the value of your token increases with each rebase, rather than the quantity of tokens. In many places, including the UK, this is a big tax advantage. I’m wrapping everything that allows me to wrap!!

Update 3: After being ready for $KLIMA launch (I’m a big $MATIC fan so had no Polygon network issues to deal with!), I eventually pulled out due to a shit show of a launch. I may live to regret that and have to revert to less technical ways to reduce my carbon footprint, but sure, I enjoyed a nice glass of wine instead! 🍷

Update 4: Tossed the funds I’d set aside for $KLIMA into $SMRT SmartCoin (Aalanche network – same as TIME). Very early gamification/social experiment project. Kinda similar-ish to the others in terms of the crazy high APR/APY. Very risky (it’s only recently ‘launched’ – marketing not yet really commenced, use case undefined etc).

Not normally something I’d do but worth a punt based on what I’d seen few days after launch Paladin/RugDoc audits and SmartCoin roadmap….Only time will tell if it’s more wine or less for me 😜

Update 5: It’s fork-central. There are multiple OHM forks popping up every network. Even a few spoons have appeared too! A few I have dabbled in are $HEC (Fantom), $JADE (BSC – from the SmartCoin guys), $GURU (Polygon), Fiscus DAO (Avalanche – not launched yet)….there are many more. Only so many hours in the day though. I’m starting to break a lot of my own rules now…

Update 6: A few more I have taken a small position in: PapaDAO $PAPA, Life Dao $LF & IceDAO $ICE – all on Avalanche, and NidhiDAO $GURU on Polygon.

All of these are high risk!!! Only invest what you can afford to lose!

Remember, forks (and spoons) are generally always a lot more risky than the original.

DYOR!

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Disclaimer: As with everything on this site, this article is for informational purposes only and is not advice of any kind. I simply share my experiences and my opinions for information. I am not a financial adviser and I am not providing investment advice or financial or legal advice of any kind. Cryptocurrencies (and most business opportunities) are high risk. Many of the opportunities I discuss exist in new, high risk and unregulated markets. Some methods require significant investment of time and/or relevant skills. Please do your own research and due diligence; do not blindly follow anyone!

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