What Is Wrapped Staked Olympus (WSOHM)?

Wrapped Staked Olympus (WSOHM) is a wrapped version of Olympus. A wrapped token is a cryptocurrency token connected to the value of another cryptocurrency token. Olympus is a decentralized reserve currency protocol based on the OHM token. Olympus also introduces economic and game-theoretic dynamics into the market through staking and bonding. Bonding is the secondary value-accumulating strategy of Olympus that allows Olympus to acquire its (the platform’s) own liquidity and other reserve assets. Olympus is DAO-governed. All decisions are formed by community members on the forum and made by token holders through voting. Olympus is constructing a community-owned decentralised financial infrastructure in order to increase global stability and transparency.

As per the platform’s official publishing, the world still lacks an independently valued digital currency. The temporary solution to offer a currency is stablecoins. While functional stablecoins somewhat achieve a stable USD value, that does not mean they're stable in purchasing power. Instead, Olympus intends to achieve stability while maintaining a floating market-driven price.

As per the whitepaper, Olympus aims to benefit stakers and bonders as follows:

• The main benefit for stakers comes from supply growth. The protocol mints new OHM(Olympus Token) tokens from the treasury, most of which are distributed to the stakers. Thus, the gain for stakers may come from their auto-compounding balances, though price exposure remains an important consideration. If the increase in token balance outpaces the potential drop in price (due to inflation), stakers may make a profit.

• The main benefit for bonders comes from price consistency. Bonders commit capital upfront and are promised a fixed return at a set point in time. The return is in OHM, and thus the bonder's profit depend on OHM price when the bond matures. Bonders may benefit from a rising or static OHM price.

History of Wrapped Staked Olympus

An anonymous developer named Zeus created Olympus to address the cryptocurrency market's over-reliance on fiat-backed stablecoins. Olympus was launched in 2021. WSOHM has a maximum supply of 64 WSOHM.