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DeFi 2.0 – Protocol Owned Liquidity (OlympusDAO, Wonderland and Euphoria)
By KPO and CZM  •  November 25, 2021
Let me introduce you to the latest hype or the grandest "ponzi" scheme in crypto DeFi today. lol. All these were started a few months back by some of the brightest minds from OlympusDAO. The idea was to solve some of the existing problems of DeFi 1.0 - liquidity farming/mining. Currently, the protocol/application will have to provide incentives (farm tokens) for users to provide liquidity to the various LPs (liquidity pools e.g. providing BTC-USDT, CAKE-USDT to earn CAKE) but there are often no incentives for the users to keep/hold the farm tokens, hence there will be constant selling pressure. OlympusDAO introduced the concept of having the protocol own their liquidity which will ideally remove the selling pressure based on game theory. Assuming if there are 2 people holding the OHM token, the most beneficial move for the both of them is to stake the token....
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By KPO and CZM
I am Ong and my fiancee (Chan Zui Mao a.k.a CMZ) calls me a Kiam Pok (i.e. stingy/thrifty depending on how you look at it). Hence, the nickname KPO (Kiam Pok Ong). We have decided to name the blog KPO because I have proposed to CMZ successfully and she is officially a KPO too. The purpose of the blog is to list down all the money-saving tips, our investment/journey to financial freedom and to document my life with CZM.
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