Unlike typical crypto assets such as network tokens (ETH, BTC), stablecoins (USDC, USDS), or unbacked meme coins, OHM functions as free-floating money supported by productive assets. The protocol relies on three components: a treasury holding productive assets, an algorithmic policy engine for supply management, and a governance structure run by token holders. This design creates a treasury-backed price floor while permitting market-driven appreciation. Instead of letting economic shocks impact price directly, the system adjusts supply, expanding during high demand and contracting when demand drops.
Olympus debuted in 2021 to fill a void in the industry, where sophisticated platforms often relied on simple tokens with static supplies. It was built as a monetary system featuring programmable policy and treasury backing. The project pioneered Protocol Owned Liquidity (POL), allowing the protocol to hold liquidity positions instead of relying on external incentives. In 2022, the shift to gOHM enhanced compatibility with other DeFi protocols, fostering numerous partnerships in lending, yield, and liquidity sectors. Later developments included Cooler Loans for fixed-rate lending, the Yield Repurchase Facility for buying back supply with treasury yield, and Convertible Deposits for treasury growth. Additionally, Range Bound Stability (RBS) can programmatically manage bond markets when active.