Protocol Owned Liquidity

Overview

Olympus pioneered the concept of Protocol Owned Liquidity (POL), ensuring liquidity for OHM holders without relying on liquidity mining incentives. POL manifests itself into several forms: dex based liquidity, and RBS swaps. Furthermore Cooler loans, based on parameters set by governance, provides extremely deep liquidity relative to OHM's market by allowing users to realize the underlying backing. This ensures users and protocols are always able to swap OHM, regardless of market conditions and external events.

Dex POL is held in an OHM/wETH UNI v3 pool. This pool is intended to be permanent liquidity, although subject to change via governance.

RBS provides OHM/DAI liquidity. With RBS, the balance between reserves and liquidity is algorithmic, with the goal to optimize the liquidity depth and reserves for robustness and long term market stability.