JUST IN: OlympusDAO voted to increase its treasury’s $ETH holdings, going for slightly more “directional exposure” as altcoin season ramps up. realDannyNelson reports
This shift is unlikely to be as “aggressive” on ETH that the framework’s authors
many community members called for. It will, however, result in a decrease in Olympus’ exposure to so-called stablecoins such as DAI that faltered during the March banking crisis.“Treasury team recognizes the need for Olympus to decrease reliance on stablecoins with centralized backing,” the proposal read. “Increasing ETH exposure marginally is one step in that direction while not undermining the relative stability of OHM’s backing in the near term.
Relwyn said the treasury operations team “agrees” with community members’ bullishness, but cautioned the protocol can’t justeverything into ETH without incurring a hearty dose of risk. Number may go up right now, but “number can go down, too,” said Relwyn, Another reason for the measured approach is operational, Relwyn said, noting Olympus’ mechanisms for rebalancing OHM’s backing could get wonky if the treasury’s ether holdings grow too large. Those mechanics currently price OHM in DAI, by far the treasury’s largest crypto holding at nearly $80 million.
“If it priced itself in ETH, it could have more heavy ETH backing,” Relwyn said. “Mixing the two can be dangerous” for how Olympus manages its so-called range-bound stability.with nearly unanimous approval midday Friday. Seventy-six wallets that together held 23,000 OHM tokens participated in the vote.
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