By Rembrandt, founding father of OLY
Charlie Munger had a rule that explains more of crypto than any whitepaper ever written: “Mark me the incentive and I could repeat you the final consequence.”
Now peek at the incentives of every token you would need ever held. Strip away the Discord, the roadmap, the phrase “community,” and the sport below is unassuming: a pool of limited liquidity and a rush to steal it from every other.
There’s precisely one potential to receives a commission: market-promote earlier than all people else does. Buy early, dump at the excellent 2nd, onto the latecomers and the believers.
The traders dumped at the first mark of weak point. The mercenary farms dumped their emissions for your head.
The VCs unlocked and sold into your conviction. A handful of early insiders grab loads of the money, all people else funds it, and the entire design wears the costume of a stream. That’s no longer a market failure.
That is the net, working precisely as built: player versus player, dressed up as community. For four straight cycles the patient backed the impatient, and the alternate known as it trendy. We all know what it used to be: extraction by net.
OLY exists because that recreation would not deserve any other cycle.
Forward of OLY had a title, it had a listing of every motion a user can steal in a token’s lifestyles: aquire, succor, stake, provide liquidity, promote slowly, promote real now. Every used to be tested in opposition to a single ask.
Does this motion feed the people that quit, or feed on them? Then every motion used to be priced to match. Nothing is banned, and nothing is freed from .
Munger’s rule, rush in reverse: resolve the final consequence, then do the incentive that makes it the rational pass.
The final consequence runs like a machine with three parts. The gasoline: tax earnings, paid by sellers. The engine: the vaults that generate lengthy-term earnings for stakers.
The defense: a strategic liquidity aquire wall that meets every smash. Launch with the gasoline, because nothing presentations the net faster than the exits.
The gasoline: exits, priced
OLY has three exits, priced by the damage they do.
A market-promote is the exclusively act that genuinely pushes the cost down. Every purple candle you would need ever stared at used to be anyone selecting the quickest door.
OLY prices that door to match the damage: a dynamic tax that scales with the protocol’s market cap, absolute most sensible whereas the protocol is young and stepping down routinely as it grows.
The reveal brackets stay in the whitepaper; the principle is what issues: the cost of the fast door falls because the protocol grows.
Taxes in the predominant pool are restful in ETH, using Uniswap V4 hooks. A restrict repeat waits for an real buyer as a replace of eating the guide, for a exiguous flat price.
An exit thru single-sided liquidity is the unsung hero of the net. As a replacement of promoting into the pool, you turn into the pool: your tokens sit down as depth, do trading expenses whereas they wait, and convert to ETH as investors approach.
It’s the one exit that cannot print a purple candle, and it prices zero.
That price is not any longer generosity. The protocol desires every leaver to resolve the door that leaves the market standing.
What OLY prices is the damage: gallop away thru the least expensive door and no-one feels it; slam the expensive one and you pay all people restful in the room.
Witness what the tax is on this net. Now not a punishment. A price, and a earnings stream. Sellers are no longer the enemy; they are the gasoline.
The engine: where the earnings goes
The greatest fragment flows real into a staked-ETH vault earning validator rewards thru Lido.
The rest is split between a Uniswap liquidity vault that earns trading expenses, reveal staker payouts in ETH, a aquire and burn that completely shrinks supply, and the protocol’s newest layer: the Liquidity Protection, which will get its net allotment below. A percentage of the downside, captured and recycled into the intention.
Practice that loop real into a drawdown and you earn the net’s strongest property: when the impatient rush to market promote, protocol earnings rises, and staker payouts upward thrust along with it.
The 2nd every other intention starves its people is the 2nd this one will pay its stakers the most. Capitulation has a beneficiary: these with the absolute most sensible conviction.
And what do the people that quit genuinely catch? The ideal of what DeFi has to provide: ETH from every taxed exit, stETH earning validator yield, trading expenses from blue-chip liquidity positions, and, because the vault intention grows, whatever the DAO adds next. One token, staked once, gathering a portfolio.
Most protocols pay stakers in freshly printed variations of themselves. OLY will pay its stakers in all the pieces else.
And the vault intention is built to develop. The roadmap ahead entails an RWA vault on Robinhood Chain, pending DAO deployment, streaming tokenized inventory yield to the an identical stakers, with more vaults to follow as Ethereum DeFi evolves.
Every original vault walks the an identical course: deployed, confirmed in manufacturing, then locked immutable. One stake, and your rewards reach previous DeFi entirely.
The defense: liquidity that stands its ground
Right here is the segment of the machine no tax can replicate. A tax makes the panicking vendor pay, nonetheless it would not end the fall; in a thin pool the smash happens anyway, real with a toll booth on the potential down. So OLY defends with liquidity as a replace.
The protocol takes a fraction of every tax sequence and stands it below the market price as concentrated ETH bids.
A smash cannot fall previous these bids with out promoting into them, and each token they accumulate is completely burned.
Sell-offs do no longer real pay the stakers; they arm the defense that meets the following promote-off. The more the cost crashes, the more the protocol buys.
Commitment is priced too
The mint, opening August 28, prices patience straight: three pillars, most efficient phrases to the longest dedication.
Stakes rush 88 days to 1,776, with fragment bonuses as a lot as four times for the longest locks, and rewards landing on 5 rolling cycles of 8, 28, 90, 369, and 888 days.
The 888 used to be chosen since it’s miles roughly one beefy crypto cycle.
Voting energy comes from staking shares, no longer lazy tokens. The steerage wheel belongs to the people locked to the lumber role.
Right here is additionally how OLY solutions the whale suppose. In every token you would need ever held, the largest holders had been the largest likelihood: unstaked, unaccountable, one rumor away from nuking the chart. In OLY, size exclusively works thru staking.
Rewards gallop with the circulation to shares, vote casting energy flows to shares, and shares approach from locking, with real penalties for breaking the dedication.
A whale who desires whale economics have to lock like all people else, which implies the largest positions in the intention belong to the people least in a situation to dump on you. The larger the holder, the longer the alignment.
None of this makes OLY immune to markets. A reserve built on staked ETH falls when ETH falls.
Staking is an real dedication with real penalties for abandoning it. And a young protocol is a young protocol, whatever its structure. What the net adjustments is not any longer whether or no longer the storm comes. It adjustments who will get paid whereas it passes.
The thesis
Most tokens are extractive by net: they create definite price flows from the believers to the insiders. OLY is the reversal. Protection by net.
The impatient pay the patient. Conviction collects. Mark me the incentive, and I could repeat you the final consequence.
By the end of every cycle, the people that held are the people that subject. OLY is the incentive structure that in the raze is of the same opinion with them.
The mint opens August 28.
Net space:oly.io • Whitepaper:oly.io/whitepaper • X:@OLY_DAO
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