Building a Decentralized Reserve Currency with Olympus

all right um thank you for joining us everyone uh today is the 15th of december this is our final meetup for 2021 um potentially the final meetup using zoom and fully remote but i can't guarantee that but definitely it's the final one for 2021 before we start let me just share my screen yeah so uh this meetup uh we're uh hosting walamai from olympus dow talking about building a decentralized reserve currency our sponsor is itascan uh just a quick note from a sponsor if anyone who is based in malaysia is interested to work in a blockchain company um feel free to reach out to the scan folks uh who are hiring both technical and non-technical positions as well some to start things off some monthly roundup first thing to highlight is this updated ethereum roadmap that got shared by vitalik on twitter recently um so there's five different kind of verticals that the whole ethereum ecosystem is trying to work on uh first is the merge which for those of you who've been following um the if two is now not really called e2 anymore it's a merge between the proof of work and proof of stake uh chains where the proof of work chain proof of work will be dropped and proof of stake will be the consensus mechanism um to use for ethereum uh then there is the search which is uh mostly around uh building up scalability with uh sharding uh then there's uh the verge which is focusing on statelessness the purge which uh is about uh removing past history on the blockchain and lastly is the splurge which involves a bunch of different miscellaneous items uh including interestingly uh and ev stuff for those of you in our community who have been following then another cool announcement just a few days ago is there's a bunch of each global in-person events that's been announced defcon is guest pseudo confirmed to be on the in quarter 4 of 2022 uh for those of you who are curious uh definitely going to defcon is one of the best experiences you can have as someone in the ethereum or even wider blockchain ecosystem there's a lot of things you can learn a lot of people you can meet and it's not one of these shitty kind of conferences um that unfortunately some cryptocurrency ones are and um maybe a bit more relevant for people here because bogota's kind of on the other side of the world uh there's if taipei which is uh planned for december 2022. that's a lot closer and might be interesting for you generally there would be hackathons uh as well as the conference itself so if you want to participate even if you're not a technical person uh these global hackathons are an amazing place to uh get your foot in within the ecosystem and um defcon for sure they take volunteers where if you volunteer that you don't have to pay for the event costs uh it's global i'm not sure but we can find out later and if you can volunteer then that'll be a very good way not just to like get a cheap uh place to cheap way to get into the conference but also you can kind of build your personal brand uh yourself by volunteering at one of these events then another main one especially for malaysians um those of you who still use whatsapp whatsapp launch their cryptocurrency payments pilot for now only in the us but with a plan of rolling it out in other countries um interestingly the the dm blockchain itself hasn't really been pushed out and i think they've probably decided that the payments thing is much more viable to push before them uh kickstarter which is a if for those who don't know it's a crowdfunding uh platform and they've announced that they'll be using the blockchain um and open source uh methods uh to raise funds so that's an interesting way of how webtree is taking over web 2. and um lastly from the global news is uh for those of you who've been following there's a lot of sushi swap dao drama i don't know too much of the details if anyone knows a bit more you know and you love to cause it feel free to share in the chat but it's also a very interesting kind of social uh case study of how dao's work uh in the in the wild and this being one of the biggest styles there are with a lot of community um participation if not support um it's interesting to see how things will pan out to the team and with our guest today being from adele so it might be a good source of questions as well then for some local news so selangor fc announced red giants non-fungible collections interestingly both on openc and pentas which is a local nft platform on the bsc chain for those of you who are not familiar with malaysian football slango fc is essentially like uh real madrid uh in the local space i think they've won maybe like almost 30 league titles uh historically so they're essentially the biggest football team there is in malaysia historically uh although recently there's uh jdt uh that's kind of had a lot of bankroll to to beat them um then um for those of you who've opened your luno app or account on the website you've probably seen a survey that they've uh sort of passed around to their users so luno is planning to offer uh quite a bit more cryptocurrencies next year um i think the survey had nine uh items with you being able to choose three uh what i've heard is that they'll probably have about three to four that they will suggest to securities commission and um those will be added to the the coins or tokens that you can trade um and in this way also being able to use your ringgit for your fiat money to be able to buy and uh lastly from the monthly roundup uh this is a really interesting story i think um i only heard about this like two days ago uh so our former pm uh najib raza uh for those of you who are not in malaysia as well you might be familiar with the one mdb story so this is that pm and he was officiating an nft launch it looks like a gaming fi platform kind of i think inspired by xc infinity um i can share the video literally this this picture is a screenshot from from a two and a half hour youtube video uh shared by the team uh interestingly the whole event was in chinese but they did get najib to share like some i guess words of wisdom to officiate their ceremony uh i can share the this link later and the youtube video as well uh inside our property telegram group and you guys can see for yourself uh hope that works out all right so uh that's it for our monthly roundup [Music] so uh we can get uh walamai from olympus dow to um to come up um as far can help him share slides yes let me share the slides i'm seeing the comments now yeah yeah and uh yeah i think we can pass it over to um what's the floor to walla mine welcome thank you um interesting to see a different lens on the crypto space from like a different part of the world so hello i'm i'm wala mai i work within olympus dow and i'd like to start with what that means what does it mean to work within olympus dow so i should note that i'm not an official member of staff with the founding org who created olympus so everything that i share tonight you can consider with um a contributor lens um contributing to olympus dow there's uh oscillating between a hundred and two hundred of us who i'd say primarily most of the work that's happening within the olympus ecosystem is contributors but why do i raise this i don't want to present myself or anything i say tonight as the official olympus stance um so any mistakes i make are mine personally um and a shout out to a community member um asv for um letting me use the slides um and uh yeah three three um so what does it mean to contribute within olympus dow so adele in the sense that we mean it is um folks who are in line with um the vision of what olympus is can kind of show up to the work discord and get involved in a number of departments so next slide please so olympus dow when it was co-initiated by some early ogs such as zeus apollo and others um and jeff um had a vision of creating a decentralized reserve currency that's backed by a community-owned treasury so a few words here what do we mean by decentralized reserve currency we'll get into that but a really important thing here is it's backed by a community-owned treasury so behind the scenes within the dow there's oscillating between 10 to 20 contributors some of them from the core initiators through to folks who've just turned up with a deep level of expertise who manage the treasury so i want you to keep that in mind next slide please so what is a reserve currency um so the the primary reserve currency that we're all um used to in the in the world is the u.s dollar but what are its traits so typically a reserve currency is backed by some set of assets but with in the case of the dollar it used to be uh when it was on the gold standard 1971 it was gold but now it's backed by kind of u.s military might the second is that it's free floating and not pegged um so what does this mean is most currencies all currencies um in the globe are pegged to the dollar um but the dollar itself is not pegged to anything it's it's free-floating and then the third point deep liquidity so wherever you are in the globe whatever currency you have um you're you're able to trade that currency four dollars um so it's really deep deep liquidity so what would this mean in the d5 space what would a d5 reserve currency require next slide please so a d5 reserve currency would need to have corresponding traits so instead of assets or military might we have protocol owned assets the second would be it's free floating and not pegged so it's not pegged to the dollar it's free floating similar to the us dollar and protocol owned liquidity so we need a depth of liquidity so people can trade in and out of home so as ask you would say olympus launched about eight months ago or so um how's it been going next slide please so since launching in april with about seventy thousand dollars we can see that the protocol owned assets and that's assets in the treasury have grown from 70 000 in april up to 790 million next slide please so protocol owned liquidity so that's the um the depth of when you want straight in and out of home has grown from nothing up to 580 million as a data analyst i should state that all of this data that we are showing in these slides is all stuff that you can check the contracts on ether scan and you can pull this data yourself many of these charts have uh adapted from june analytics which another community member shout out shadow and um putted me and scoutkowski and folks over in data and marketing and policy and other such for creating these kick-ass june analytics slides but all of these charts that i'm showing you are kind of is an open open financial system um web 3 another way of thinking about it is it's an open financial system where you can kind of read the books of any claims made about the system so each of the different colors here they each correspond to a different type of assets in the liquidity pool so common ones might be the diet orange pair another one would be om and there's a few others as well okay next okay so this is protocol owned assets excluding the native tokens so it's worth noting here that within d5 most projects when they're disclosing the size of their treasury they include their native token typically their governance token in the case of olympus the 500 million is the protocol owned assets without including any home so it's kind of unique in that sense that we don't include our own token base in the assets that we're disclosing as part of the treasury next slide please and then there's this notion of risk-free value so that is the amount of fans in the treasury that are stable coins and the written down value of lp tokens um so diet arm for example it would count the day but not the ohm and the amount that's in the treasury is 187 million so i'll be pulling in some of these figures later on the slides to explain why they're important but next slide thank you okay so how how is how is it that olympus in the course of eight months has pretty much gone from um zero to the figures that we've just run through um one of the primary mechanisms that that's happened or the the thing that olympus launched with was this mechanism for bonding so how does bonding work so say you have some eath or some dye or you have an lp token that represents a diet owned parents for example sushi you could approach the smart contract the olympus smart contract or through the website and you could sell one of these tokens to the treasury in exchange for some home and that arm will be released to you over a set period of time so five days and why would you do this you do this because you can get a discount on the arm relative to the market price this is a pretty novel mechanism because what it allows the smart contract the protocol and olympus to achieve is to own its own liquidity which kind of builds that point three of what does a reserve asset require it requires deep liquidity so um if we pop to the next slide so once um once someone has bonded and they've received their own they have a number of options they could either go to the sushi swap or some other decks and they could trade their own back for um stablecoin or a coin of their own choosing or they could stake what's called three three um and so in the red box here you can see a pretty big apy um maybe not big in the realm of um the many forks that have happened um since but still big comparative to what we might be used to i'm seeing in tradify um and a common question when people initially saw this apy is sure how can that be sustainable um so let's pop to the next slide so a common response from armies when the question of the sustainability of the high apy is to reference this thing called runway so runway is the number of days that the rebases could be paid to stakers if no more revenue from bonding where to come in so at the current moment in time that the number of days that is is 376 days next slide please okay so the next thing in these slides which they highlight is um the the keene of i would notice that the market cap for olympus which is around um two and a half billion or so hovering around there depending on the choppiness of the market is much greater than liquidity so the exit liquidity is around 290 million and for context the largest wallet holder within olympus at the moment is holder of 110 10 million so how how within this system do we not just have a run on the bank or people kind of worrying that if they want to um get out of the system that they won't be lifting left holding a hot potato and here um the the fear of that happening is um weighed up and balanced um against this 97 um treasury claim on under distributed arm so we'll get into what that means but the basic mechanic here is trying to figure out on in psychological terms balancing the fear of one thing versus the greed for this other desirable outcome so if we pop to the next slide so what does undistributed treasury claim mean so if you remember from a few slides back three or four we had this notion of risk-free value so there's 187 million um risk-free value so to recap risky re free value is all of the stable coins and written down value of lps in the olympus treasury um that was acquired through the process of bonding and i should mention with risk 3 this assumes that the stable coins themselves don't lose their peg and also that the smart contracts aren't hacked in some way and this type of thing so should mention that risk-free doesn't mean entirely risk-free of dependencies from either outside attack or from the stable coins getting unpegged and then total supply so this is the total supply of arm on the market and then total um mintable home is 180.

5 million so this is um uh the amount when someone bonds um into the system um there are three um three uh arm uh minted one for the bonder um assuming it's one being purchased one is produced for the dow for operational costs and one is produced for the stakers and the ones that are destined for the stakers are landing in a distributor contract and so that is the total number of arm which is due to be [Music] distributed to the holders of the stakers of ohm so essentially what this is saying is that um 97 of the [Music] arm which are due to be distributed to stakers um 97 of them 97 are in that distributor contract and so what that means then is um if everyone were to flee the um the the system they were to sell even if someone were to have uh the last person holding even 0.0 um one of an ohm would have a claim to all of those 97 percent of uh on unclaimed home through the process of rebasing so if we pop to the next next slide we can see if there is a bank run 97 of the risk-free value of 187 million um is 183 million so in the case of the largest holder um who has about 110 million roughly speaking even that person if they were to hold through an entire background they were the last person left holding they'd still be making a profit of about what is that 73 million um so there's a strong incentive um for some people to stick around um even if there is a panic i should mention some of the figures i just ran through if i've got imprecisions those are my mistakes not the slides mistakes um i can point at the end of this talk to the og uh asv delivering these slides in his his own words um so it might be worth pointing out to them but broadly speaking the broad brush strokes um these are the underlying dynamics for the mechanics at play so next slide please so does um growth happen in olympus only when new people come into the system um no not only however there are other sources of revenue so for example when traders are trading or people are um uh that's the next slide sorry in this slide so total the seven-day moving average of um revenue is about 5.6 million a day so it's olympus as a system is been so far been pretty profitable um next slide please okay so in terms of uh the incentivizing um people to keep bonding into the system there's this mechanic called um the well it's is this um calculation um so what we can see in this oscillating wave is um an amplitude which is affected by the mathematical equation above so um bcp here is bond control variable um and without getting too deep into the mechanics of it the story here is that um if someone hasn't bonded in a while um the discount that they'll get will increase until there's someone in the market who says you know what that's a really good deal and then they purchase it and then the tax triggers the the calculation which figures out the discount to reduce and it keeps happening in this way where within um within the bounds set by the policy team and the treasury team you'll get this range this amplitude within which the bonds will either discount or they'll go into costing more than you can get um at the market um in this way kind of uh leaning into the fact that um out on the market there'll be some market clearing price within which arm as an asset will be attractive to buy um so this is a mostly automated process but does also have levers that the community members involved in policy and um a bit treasury sometimes and a few other um folks are kind of involved in controlling those levers next slide please okay so all of this is kind of jumped straight into the kind of maths figures graphs primarily because i've borrowed asv's um sv slides and asvi is a very precise individual with like a deep understanding of the various data sets and mechanics that play within olympus and these slides were to be presented at a conference where perhaps there were folks coming a bit more from the tradfi context within the d5 space um olympus you could say is one of its primary exports you could say is this this meme of three three um the comma something uh the bracket con something comma something bracket um notation is now kind of widely propagated throughout um a lot of d5 and um a lot of crypto twitter and even beyond we're seeing kind of popular figures out there in meat space and popular culture kind of having references back to back to this meme of 3-3 which is a hint back to the game theoretic um yeah someone mentions constitution dollars like maybe breaking through to um breaking out of the crypto space into the the wider popular culture but really 3-3 at its core is the game theoretic notation for cooperate cooperate cooperate um in the sense of when two people involved in olympus the um the behavior which leads to the best outcome for each of them and the protocol is actually if both of them stake um and so memes have been incredibly important within the building of a culture around olympus for communicating at times really complex materials so the stuff that i just ran through is complex and a growing number of us have managed to kind of learn the essence of what's happening through uh pictures of frogs pictures of mushrooms cartoons and this type of thing which reduce down complex um ideas into enough understandable stuff that um you can start to build something of a shared mental model um that's kind of like a affecting uh collective feeling so the pictures here on the left is um there was a olympus improvement proposal in oip 18 to reduce the apy at a certain point which wasn't a popular um proposal at first we see boo get better material um and then uh what ended up happening is you know you have someone like um shadow or community member from um treasury or policy going up and giving a really um excellent um uh write-up within the forums that then goes through to a snapshot vote describing the reasons why actually it makes sense to reduce apy i mean here down in the right hand corner we can see like talking points might be actually when you reduce the apy you increase the runway um you uh a bunch of other stuff um and then on the right um asv is also involved with um uh klima dow which was uh one of the first alternate uses of some of the olympus dow mechanics to essentially buy in diamond hand base carbon tons and this meme is essentially making a reference to the fact that uh climate change is a thing generally speaking um is failing to uh achieve coordinated action um but then when someone shouts about uh 30k apy a whole bunch of people um come and arrive so next slide please so back to the question of um uh income income so alternate ways that um olympus is making money other than um the bonding mechanisms um so on the left we have uh fees today from the liquidity pool so anytime anyone's buying and selling um the protocol itself is um making profit so today that's been um 24 million and that comes from the fact that olympus owns 97 of its own liquidity um and we're currently expanding out um across uh multiple layers multiple chains um as we speak um so those pool fees are going to be expanding not just on each layer 1 but elsewhere as well the next source of revenue is olympus pro so actually to be honest this is how i arrived to to olympus is i heard zeus um talking on a podcast so zeus for those of you who don't know is um was initially a i think a south park character um who um co-instigated initiated um olympus and uh was speaking um on a podcast and mentioned the fact that after the after the release of um version one after they kind of got it up of the ground said he took a a bit of a break during which time community members had um come up with a plan to um turn the bonding mechanism into a kind of a bit of a platform that could be offered to other protocols i think there was some friends over at um alchemist goofy troubles was like this would be really cool if we could use something like this and uh since launching in october it's generated about 500k in profits and i think there's something more than 30 partners now using that platform and the latest announcement is that olympus pro is going permissionless which will kind of expand the the reach of this pattern to other protocols um and there are other sources of revenue coming down the pipeline so we've um just launched an incubator program which um you can kind of think about it kind of like a vc that won't end up dumping tokens so it's it's going to be a pretty rigorous um process but we'll be working with early stage partners kind of closely aligned to the values culture and vision of olympus and creating a mutually beneficial flywheel and of incentives so long story short um there's a growing number of products coming through the olympus pipeline that generate profits and revenue that don't depend on new users coming into the system that being said with the vision of it being a the the reserve currency of defy and beyond um it's inevitable that um there will be new users should we be successful so all of these different dynamics and mechanisms i've mentioned will um keep adding to that flywheel next please so yes this slide is just talking about strength of community so mentioning the fact that um much of the innovation and the products that are being produced within the dao are produced by contributors um so you can think of that in the sense that we don't work for the dow we don't work for a company we can contribute with the dao with each other and um to loot back to the sushi drama i don't know the specifics um of it but um i can say that from what i've seen within olympus maybe one of the differentiating factors between olympus and other dows is that opacity between different sections of the dao is not super high so we've got about 180 [Music] between 100 and 200 contributors and the capacity for someone to take an interest in a section of the dow and then to become integrated into it and become a productive contributor in that zone you know we're still figuring it out but it's it's not an impossible task it's it's possible for people um who are willing to kind of jump into um that way of doing things so what this means is increasingly you have a really large number of people contributing towards a common end building up a shared mental model as we put it or other folks towards a common a common goal a common ends and from that shared understanding and a having a common goal a great number of products are being produced at very rapid speeds so the bond marketplace was conceived um and then within six to eight weeks it was ideated built out partners made product design everything stuff and launched all without the direct input or initiation of the initial founders so they had input and of course they were involved in the process it didn't come from a small group of people so that's something that um a number of other dows i kind of see or people who call themselves daos or this type of thing um that's one of the key differentiators is um that i've noticed as someone who's been in and around these types of spaces for a long time um is that uh olympus is one of the most decentralized in terms of community decision making and power that i've come across and that shows up in meme space the products that are being built and some of the catchiness okay next slide so here's a um i can't speak to cl uh klima so much because it's um it's not in my wheelhouse but um this is um a reference to the fact that the underlying um uh patterns and dynamics um innovated by olympus when applied to the different domains such as the sequestering or the capture of um base carbon tons has been massively impacted so i think as we mentioned in this slide something to the effect of since launching in october um klima has managed to capture i think like two and a half percent of um the usa's monthly carbon emissions and in that short amount of time um so i think this is a reference to the underlying dynamics that olympus has brought to market applied in a different domain um is wildly successful along a different axes so next slide please um oh and this is kind of a reference to what is the total addressable market of um something which is attempting to be a reserve currency so when you're getting into the realm of um reserve currency that the total market size the total addressable market and the market sizes in the trillions is really big um if we pop to the next slide um and the margins um the margins are uh incredibly big so generally speaking when you print money um the cost of production so this should reference that um the conception within the smart contract it determines that the um the value of an arm is actually one die so everything um on top of uh one die the difference between that one die and the market price with the discount is all profit um in that sense so it's an incredibly profitable um enterprise with a very large addressable market next slide please and so why why has arm caught the attention of so many of us to the point that we [Music] many of us have shifted to working to the dao full time folks like us fee are not only just investing money but they're also you know investing their reputation and their careers they're binding into this thing um is that under underneath the charts and the stuff that we've just shown um is that um what's at stake here is that a system such as this is giving anyone who has access to the internet a chance to get involved with a decentralized reserve currency that's independent of nation state politics that is um community directed that you can have an effect in that you can get involved in which is a pretty profound thing that's new that hasn't happened before so that's what's really got a lot of us super enthused about contributing to olympus and hopeful for where it can hopefully where it can go and then i think the last slide is sources so feel free to share the link to these slides so that people can click those links all of those dashboards are pulling data from the ethereum blockchain they're built by community members um and yeah just a a reminder that i'm here in my official love of olympus but unofficial um capacity so if i've made mistakes i apologize but i broadly speaking um it paints a picture of some of what olympus has set out to do in the past eight months and kind of uh how it's been going all right all right thanks uh well of mine so if you guys have any questions uh for one of my either from the presentation itself or just in general that you have about olympus feel free to put in the chat i see fauzi's already put one question there and for the fireside itself a fireside chat itself um we'll get as far to uh moderate the questions um so as far as i can pick the questions uh that you guys are asking and he will ask it uh to another one uh so i'll take it away thank you harif um so yeah thank you olympia for giving us a taste of what olympus is building um so i guess before we get into the meat of things right um [Music] maybe you can share with us a little bit more about about yourself like how did you get involved in the space what's your background and how did you found yourself where you are right now contributing in a decent lifestyle so that maybe some of us who are still looking for ways to become involved or maybe think that it is too late for them to join maybe you can share with us a little bit more about yourself like how you started what got you into crypto and yeah and how you got here and in the meantime anyone in the uh call if you have any questions do type it out in the chat so i was just last week um on the agora podcast where i shared a bit more of my long um long format of how i ended up contributing to um and getting involved in crypto so i'll give a shorter version now if if it sparks a bit of interest then i can um share a link out to that that podcast um the agora podcast is one of the community projects in olympus it's kind of got an increasing kind of media team who does tv podcasts and newsletters and that type of thing um so shout out to them um i've been peripheral and loosely involved in crypto since about 2012 through kind of accident at that time i was deeply embedded in [Music] kind of grassroots co-ops um in the uk um and so i was at a workers co-op um working in broadly speaking i think you could call it an analog version of a dao so it was a co-op that was itself a member of a broader federated network of co-ops and at the time i was looking to kind of shift a bit my focus of work so i started doing stuff a bit more with computers and i happened to know a few kind of hacker types who taught me some stuff and they were playing around with this system called bitcoin um so one of the first things that i was playing around with was the bitcoin software just as it happened to be the thing that these people were um interested in the time so they were just like this is a configuration file this is a flag this is a blah um and because of that i kind of got a a a windfall of cash that i didn't work for it wasn't skilled skills based i didn't know what i was doing i was just lucky in the right place at the right time and so because of that i think i had a very early insight into the fact that something really new and strange was happening and so i long story short ended up using some of the cash from that bitcoin to do a coding course um back in 2014 and i've kind of been working in and around crypto since around 2014. um so because of that history in working in kind of a decentralized fashion in workplaces where you didn't have a bus where everyone was responsible for note-taking for divvying up tasks for identifying um kind of work processes and client workflow and all of this type of thing plus my exposure to this weird new internet money stuff um that recently when uh there's been this more movement towards potentially working in daos um it suited my background in that sense that um they're really places that place a high value on not self starters but people who are able to work with other people identify needs if you're a good note taker it really helps um if you're a good coordinator it kind of helps and then if you have a particular skill set there's often space within daos i'm not just olympus i'm hearing this from other folks who work in other dows um depending on the skill sets and interests that you bring there's generally some type of a gap for you um it's just it's just a case of finding finding it um and my piece of advice for what to do to find it is um oftentimes it's just about showing up and making it really easy for people to know kind of what you're about what you want to do um and that type of thing so um the way i got pulled into olympus is i i just was i started this a non-account in september at first i thought olympus was too good to be true didn't want to do it on main didn't want to look foolish set up this this mushroom in the shark suit and was a bit of a loudmouth on twitter just being like what's this how does that work and eventually when i started sharing some of what i thought was happening a few people from within the dow said hey you should look at this grants thing or you should look at that if these are your interests and um that's kind of how i got into it so yeah my advice to you would be talk to people um and make it known what you're about what you like doing um and don't be shy it kind of it feels like a a moment in time where it really doesn't matter where in the world you live you get a like you don't have to put your video on you have voice calls um and you'll be able to contribute somewhere to some dao we're just in this strange golden age moment where the nature of work is also changing as well as the technology being innovative it's the patterns and ways of working um are kind of open in the same way that the open financial system is kind of being built around us in these technologies i know that was a long answer but i'm really kind of hoping more of us from around the globe who aren't necessarily from europe or the states also get involved because um yeah it's open for all of us yup thank you all my i do see there are a lot of questions on the chat here but before we go there i do have some of the questions that i want to ask you um one of the the main thesis for home is that you want it to be a decentralized reserve currency and um i think the common frame of mind when imagining a reserve currency is it is uh of a stable coin not something that is floating so um maybe you can share share a little bit like how can a reserve currency become a reserve currency if the value is not packed to a dollar so you can share a little bit your thoughts on that so the reserve currency that we have globally speaking is currently the dollar so uh maybe for illustrative purposes we can kind of give a broad brushstroke um like a story of how it came to be the reserve currency um and again i'm i'm not a historian this is like broad brushstrokes so any imprecisions are just me making mistakes but i think this the wider story itself is still more or less correct so after um uh the world wars um europe which had been a colonial power um and had been kind of a dominant force at that point um was much weaker and the u.s due to kind of industrial powers and not being as uh close to the histories of maybe overreach from europe and its kind of colonial exploits um and all of the um the kind of uh costs of were at that time um the the u.

s kind of um set up this um agreement where uh in exchange for kind of helping europe rebuild in the post war with efforts it said okay the u.s dollar will need to be the the primary unit of account and at that time the different states involved in that agreement it looked okay because the us dollar at that point was on the gold standard um it was kind of a fractional reserve so what that means is for every dollar that was printed as part of that monetary policy at least there had to be some um gold in the bank um or equivalent um hard assets um backing it um so moving forward from that point at uh in around 1971 um i think it was nixon um detached from the gold standard so what that means is they they moved from having to be backed by hard assets at all and that was also coupled with um deals done with the middle east around wale where essentially rather than it being backed by gold this other highly sought after mineral resource oil would be priced in the dollar and as such that would maintain the dollar's dominance as the de facto reserve currency of the planet against which all other um currencies are denominated i'll highlight here that the us dollar is unpacked um it's the reserve currency but it's um it's unpegged so in this sense olympus dow you can kind of think about it like the 1971 us dollar reserve in the sense that each arm that is minted has to be backed by a crypto version of a hard asset um so right now i think the other part of that question um there's maybe a part of this question which is to do with um stability so isn't another property of reserve currency that um there's at least some pricing stability um and i guess that again kind of depends so some people would say these days with the dollar given inflation and money printing not just by the states but by countries all over the place that's not so much that stability is maybe not entirely accurate but ignoring ignoring inflation and money printing and all of that the vision within olympus is that to get to the point where it does achieve stability where there is so much supply and so much value in the treasury um it needs to go through this expansion phase and during expansion phases we see a much wider set of volatility where you're exposed to um uh kind of uh big wicks up big wicks down um in the process of essentially um getting to a point where you have um trillions of home um or a trillion arm in the market but it's backed by a corresponding amount of hard assets in the treasury and so the vision or the idea is that the kind of the market value of the treasury that is the value of all of the assets um inside the olympus treasury not including the own because we don't count our own tokens starts to meet the market price broadly speaking now whether that's in who knows what number of years but that's kind of the trajectory um and kind of the vision um so i hope if i if i have misunderstood the question or i've answered it in a way that kind of didn't answer do let me know but um yep i think you uh you uh definitely answered that question and thank you for the short history lesson there um i don't want to bring up another thing that um olympus got me thinking about which is protocol own liquidity and um can you share a little bit about what is the difference between protocol own liquidity and the normal total value lock or tvl that we sometimes see when projects are over showcased are there any differences and why this why these differences and and how can it benefit a project if if they own their own liquidity i'm gonna uh there's there's some common answers to this it's just i'm gonna try a new one tonight because you know yellow so um let's say you open up a new bar um what's what's a cool bar district where you where you're from um you can say uncle dawn uncle dawn right so uncle dawn's is like the the destination um the owners of the land like the property owners or whatever of that bar strip or in and around that zone they know it's this it's a location a super hot location um and you as a new um bar owner you want to be in in the kind of the hot zone but you don't you don't have the um uh all of the capital to buy buy a property right there so you rent it um and so you already kind of have this expenditure where you're kind of paying a lot of money to be in this um this desirable location so you you're trying to find a way to kind of kick-start kick-start the bar so you want to get i don't know some influences um to the bar so that you can do some of the social media business where you're just like this bar is pop in check out all these like local people who are gonna like hopefully um attract a bunch more people um with funds into it so you agree to pay those people some amount of incentive to kind of be there so all of the costs so far they're kind of um they're sunk costs they're not going to come back to you when you're renting at high rates it's not going towards your mortgage or your own like equity increase when you're paying those influences incentives to kind of come in in the hopes that it tracks um it attracts kind of more punters into the bar more people to kind of kind of come and drink so in the old school way of doing things they're kind of um the pool too you would take a snapshot of that moment where you have all of the um influences in in there and we call that tvl like total value locked now just because you've taken a snapshot of the value of everyone in your bar at that moment it doesn't necessarily you as the protocol owner for you don't necessarily own the liquidity that's represented in that bar at that moment it's actually kind of when those people leave in this case for example liquidity providers for a new protocol people who have the funds unless incentives are aligned at some point when some other new bar owner is going to be offering a different set of incentives they'll kind of walk off and go to the next place where they're getting free drinks and extra incentives and like bonuses and that type of thing and if you take a snapshot then the tvl is kind of gone so as an analogy um this is kind of a lot of uh in the d5 summit a lot of the um if you follow the graphs you'll kind of see essentially there's this growth where it kind of rockets up um where the protocol is just distributing its incentives out but then it kind of completely crashes as soon as um a better offer around the corner on a different bar strip comes along so the difference between that and protocol and liquidity is kind of the difference between owning that property and renting it in the sense that when someone who's coming and interacting with olympus for the first time or other projects which now are using those pole dynamics bonding dynamics the protocol itself is now owning that liquidity versus renting it and people being able to walk off and leaving so they're quite on the surface of it big numbers um tv unlocked and protocol and liquidity on the surface of it they look quite similar but underneath the power dynamics the implications the sustainability is quite profound and put another way if you have a supermarket and the stocks the shelves are empty um and the producers of that food are no longer you know they decide they no longer want to um stock your shelves for free you've essentially just got an empty shop with no products in it it's kind of going to be a ghost town and increasingly i think protocols in d5 the the lifeblood the the air by which protocols live and die is liquidity um and if you don't have a system which incentivizes or captures value in a sustainable way these projects you know and many of them have kind of come and gone um won't sustain over time so we've got maybe eight or nine months of data for olympus now and we've had periods where you've had um the price go up to some amount and you've got 80 pullbacks and you know if you're watching the markets it's kind of hectic and maybe doesn't feel good but looked at through another another lens the liquidity is deep enough to um to allow for that amount of trading in in a sense it's kind of bullish that it's uh in the short lifespan of um this protocol in the eight months nine months it's managed to achieve um one of the traits um of what a reserve currency should be able to do and that is if someone wants to buy in and sell out of um this thing they should be able to which um so far it's achieving yep thank you very much i think um whenever you're in malaysia we will bring you to this uncle down and then we can teach the owners about olympus um so i want to take one question from the floor but i will reframe it a little bit um so uh recently olympus yeah you guys introduced um g ohm and you've also deployed on other chains and maybe just a subjective question right how will that dynamic change like like what does that other dow decide to introduce geom and and uh how will it affect the dynamics of the dao when you start introducing other chains will everything would things be different or would things be the same or what's your thought on that um so part of the 3-3 philosophy cooperate cooperate um i think needs to be instructive here so uh olympus has a grand vision of being the global reserve currency um however from what i've seen from the very offset um there's a highly collaborative culture and so um i think there needs to be kind of an acceptance that olympus has built up expertise and brilliance around many of the new innovations and mechanics within olympus that being said there isn't a vision for kind of olympus becoming experts at absolutely every chain or every domain and so i think what you'll see more of is one of the aspects which has made olympus one of the destination dials to come and work for is this move towards cooperation and so with the launch of geom and the proteus program which is a 100 million [Music] dollar incentive program which is uh uh for um incentivizing liquidity on other chains um is that we're gonna see more partnerships between olympus and um teams which have domain expertise um uh in their zone that they've built up kind of um uh kind of products um and um skills over the last i don't know five six years and so you'll see essentially um partnerships between olympus and partner organizations who are helping build out the infrastructure in the ecosystems that they have expertise in and you'll be basically seeing increasing level of ways in which different organizations can create mutually beneficial um aligned incentives where um it both meets the aims of olympus and the aims of this other organization and the mutual aims of each protocol and um the vision of um olympus just be wherever there's a need for liquidity olympus is going to go it's going to move like water and in that sense anyone involved in the olympus ecosystem is increasingly going to be able to move throughout crypto cross chain cross bridge cross layer um increasingly in ways that are frictionless um and so how will that change how we do stuff in the dao um i just see that um we're going to keep keep getting better at cooperating if i'm totally honest which is just going to be more of the same better processes iterating on them one of the comments that many of the olympus pro partners give back to us is that we're very easy to work with and that the process of working with us is really clearly defined and that makes the entire experience quite enjoyable and stress-free and i think you'll see that type of feedback across all different partnership types [Music] yep thank you all my i think it's also the first time that you're having a doubt contributor uh in our meetup so um i would like for for the next questions to be more uh related because i think there are enough recommendations enough content from the community on olympus if anyone would want to ask about apy and um and and other monetary policies and um so uh what am i i believe you are one of the um proposal writers for um the ogp right or the olympus grant program yes that's correct so like um i'm curious like um what does it take to write a proposal um is it at the start of a process for executing something in the dow or is it towards the end how do you like lobby on your decisions and maybe you can talk us through about like what went through your mind what was the process for you to write out that proposal and convince the community to to approve this this graham program so i think i mentioned um my journey into olympus if i can start it somewhere was um being a bit of a loudmouth i talked about my background in cooperatives how i felt that the protocol owned liquidity and olympus if you looked at it a certain way it kind of looks a bit like what um uh nobel prize economist um elena ostrom calls a common pool resource so that some resource commonly owned by a wide number of defined group of people towards which meets some of those groups of people's needs but that those that group of people don't all necessarily need to belong to the same organization so having come from a decade in cooperatives i was looking at this thing through that lens and i was like well what would it take to build a universal basic income around a common pool resource if it looked a bit like olympus and so i was just kind of chatting on twitter posting memes and this type of thing and i think um a few contributors kind of noticed some of those threads and they said hey can you come and look at um this new product so we've just released using um uh indica this character called indigo has built out um um uh this uh new d5 primitive which allows you to redirect your yield called taiki and on top of that um i think this is this alpha i think it's not been launched yet but i think it's been leaked elsewhere so i don't think i'm gonna get told off for this there's a product called give which is going to allow armies to redirect their yield um in a permissionless way so you'll be able to redirect it to any ether dress although there'll also be some um kind of a curated list of um orgs that you can kind of redirect yield to and uh once i kind of went into the dao and a bit introduced myself and i was chatting i think i mentioned the fact that um i was chatting with uh someone from get coin this uh scott one of the um the [Music] core initial founders initiators of bitcoin and i i i was like why don't why doesn't olympus have a grants program and then um a contributor on banksy shout out and banksy was like we would like to have one but everyone's busy at the moment if you want to help make it happen then you can you can kind of go for it um and so that's how that started and what it looked like was maybe four or five people in a dm i started a document and i looked at the ethereum foundation grants program and the uni swap grants program and then i kind of smashed those two things together and then i showed it to a couple of contributors and i was like what what do you think of this um and then about i don't know a week of that like backwards and forwards it got to a point where someone said hey this looks more or less ready you just need to find some people for the committee and i was like well who do you think i don't really know anyone so then some names were suggested we had a chat and then um after that point then we put up the oip and then it's kind of like at that point so there is a you're right to point this out because within the dao it's um uh like between 100 and 200 people that's like a small village you could spend your whole time in there and not come to the surface and you'd still have your entire day kind of filled up with meeting different people and whatever and then outside of that there's about uh what is it like 80 000 armies or 80 000 unique uh ether dresses with some home holdings um so you know 200 people out of 80 000 is a small percentage so olympus is community driven in the sense that for any material change to the policies or um use of treasury funds needs to be agreed upon by the by the majority of the dow um so i think it's at least 51 in that sense i think it's um uh technically speaking though um i haven't seen a grant proposal go through with um such low um majority before i've not seen that happen but yeah so every home holder can vote on snapshot and if it doesn't go through then um for the most part yeah i think it that puts a stop to it so it's a bit unclear when you're putting up the oip if how people are going to react like because you don't always something that might be kind of fine from your perspective there might be a perspective out there that finds it really you know a bad idea um and so practically speaking once you've put up an oip my personal stance is to try and get in disagreements with people like really share my opinion on stuff and find the people who have a very different opinion to me and try and understand their opinion but when i'm doing something like an oip kind of reach out to them and say hey would you mind checking out this proposal i'm going to put forward i just want to check i know you and me really disagree about a lot of things um would it be okay if you look this over and let me know like what you think of it like from your perspective is there any problems and once you've done a few rounds of that um it's if you've got like if you found everyone who disagrees with you and run it through that and kind of taken their um perspectives on board by the time it gets to um putting it in front of the community there's hopefully not too many surprises um so i know that was a long answer it's kind of um there's a saying i don't know where it comes from it's probably um from some indigenous peoples around the globe a lot of stuff comes from folks and then gets rebranded but if you want to um if you want to go fast go alone and if you want to go far go together so i think uh one of the critiques of um orgs like olympus is that it can be a bit slow-moving um compared to places which call themself a dao but are really just a small number of people directing things and they can appear to be moving fast and for the most part in some cases many cases they are however like over time i think what you'll see is that if you want to go really far you kind of need an organization that is moving fast relative to the number of people it has but slow relative to super fast movers so it is a bit of a slower process compared to um orgs where there's a real there's a disjoint between the central org who make things happen um and the community and i think i don't know the inner details i think that's at the heart of some of the drama in sushi um from what i can tell like at this disconnect um and it's certainly the um the impression that i've had from other dials i've been involved in like the less integrated the the dao and the contributors to the doubt are with the community that they're embedded within more friction and issues and ruptures um that you'll tend towards over time great right um thank you very much um i think that segments nicely to not so much on the sushi drama but more on your own view and your own observation on on a structure in a down like does it organically becomes a structure or um is it a flat structure and and if there are any other and and harry potter as a question here are there any other doubts where their own um organization structure kind of impresses you where you see that it's working um to me you can share a little bit like if even a structure exists in entire right or is it everything uh more of like a flat structure um there's look there's this ticket on um sometimes when we're talking about dowels or or flat things um hierarchy is almost this dirty word that we veer away from the structures that i've seen which um i've been most impressed by are ways which honor and actually leverage and um utilize hierarchies but where um the hierarchies aren't fixed and where they emerge around specific context for specific reasons um and where the hierarchy doesn't become kind of this like fixed thing that's immovable and unchangeable um and so the [Music] to my mind it's not so much the structure itself as the underlying culture and philosophies underpinning our choices for the ways of organizing in the ways that we do and so i looped back to um one of the reasons that i got involved with olympus was i picked up in a podcast with zeus from brad from mission d5 i think um i can share a link to that um and when i was kind of like trying to figure out is this thing a ponzi is it real it seems too good to be true what's going on the thing that one of the green flags that really attracted me more towards the project there were there were many to be honest i spent uh three months doing a deep investigation of olympus before i got involved because i was really trying to find something wrong and actually i started contributing so i was like well i can't find anything wrong from the outside so maybe i will if i dig in from the inside um and yeah i now consider myself just like i'm like so convinced i'm like okay i'm just gonna keep working here forever now but um in the podcast with zeus um the thing which he said which i found um very appealing was the um the fact that really soon after launch um they committed to and actually um delivered on um transitioning to a dow really quickly after launch um and the fact that the early founders and the initiators of the project every opportunity always gave a shout out to community members other people who were involved the fact that um products were being produced and they didn't have direct involvement or initiate it um i think there's a really big ticket that where dials and the structures of them you have a really hard time escaping from your foundations so whatever gets laid down at the beginning the early culture the early um the early initiators and founders um kind of pre-determine what a lot of the potential future structure can be um if you have founders and initiators who are truly dedicated to decentralization not just of the technologies that we use but of power of the organizational structure of the ability for new contributors to feel empowered to produce something unless that exists within the um early foundation founders um vision and unless they deliver on it in my opinion most um dows are sitting on a ticking time bomb um in the sense that what will happen um for the most part is people in the space not everyone because some people are here to fill our bags and make a lot of money no judgment but a whole bunch of other people are here because they're very dedicated to the vision of a decentralized future permissionless um open access um transparent fair equitable um when there's a a dissonance like a strong separation between what people think they're arriving into compared to the kind of under the surface actual um uh established power structures that might not be clearly defined in process or marketing or what you publicly say um there's going to be a lot of internal conflict within the org and a lot of confusion externally within the community and so um the thing that impressed me about olympus was the fact that um there's this culture of um building a thing and then shipping it and then telling people about it or if um they talk about it they deliver on it really quickly so i think it was in march or april zeus wrote a medium post which i can share a link to it saying we're initially going to launch in a bit of a centralized way so we're going to have uh multi-stakeholders for policy and for the treasury and the vision is that we're going to move to on-chain governance and we'll hand over to the community so this middle ground will be yes we internal to the dao and the initial founding team will be centralized to begin with but we're at the service of the community so they set up manual processes such as voting and snapshot process that a community needed to vote on and now where are we we're thursday december 16th geom has now been launched so that's governance home um and migration is underway so that's the space between say april march april when this product project launched through to now um move to on chain governance um that can only happen because the founders are truly dedicated to decentralization and by being truly dedicated to it they attract um an entire dow's worth of people primarily who are also into decentralization and that's quite rare in this space i won't name names i won't come in on exact other people but you know who i'm talking about you know which product um projects where um the the word dao is used or decentralized is used but there's a dissonance between kind of people's words and their actions um and in my experience if the actions and the words um are not in line that's not gonna change um and so i think uh the opportunity for us as djans as as um armies as mushrooms as people involved in the um decentralized space that if your thing is decentralization look for the projects who are using decentralized technologies but also in terms of the way they're organizing um because it's pretty rare but when you find them they're pretty special and another thing that they tend to do is they'll tend to dog food they'll like build stuff for their own purposes so projects which tend to do that um especially dog fooding around internal governance and this type of thing that they're the real deal um yeah yep um thank you olympia i think that is uh a good note to end our community meetup tonight um i would like to apologize for everyone because there are a lot of questions that we didn't manage to get to um and uh one of my maybe if you don't mind um uh i can share with them your twitter account uh and maybe uh any final words from you on if anyone uh interested to know more about um olympus about dolls in general that you can guide them to um yes just you know hit me up on twitter i don't like i might be if there's a bunch you know there's quite a few people in this room hello everyone um it might take me a little bit to respond but i'll get back to everyone and um uh maybe i can put up a thread afterwards with some good resources um for dow 101 and getting started and yeah i'm i'm a bit anxious that i'm realized i made i was imprecise in some ways in the talk earlier about the slide so i'm definitely gonna link you to us fees version so you should consider us fees as the source of truth and mine is the like uh chatting about dallas all right thank you everybody um i passed the call to you all right thanks thanks as far and thanks a lot all of mine um yeah so thanks a lot everyone for joining um this is the december uh etl meetup i'm gonna click on stop recording now