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OHM holders can choose to stake OHM for gOHM, which receives the Base Staking Rate (“BSR”). During Olympus’ bootstrapping phase, this rate was intended to reflect the expected growth of the network. The BSR now serves as a demand driver for OHM as well as a reference rate against which productive economic activity (lending, liquidity provision, etc.) is measured. Furthermore, it acts as a foundation for OHM bonds to develop a yield curve across different expiries.

The BSR is set by governance.

gOHM = OHM * Index

where Index is an increasing number based on the BSR.