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Range Bound Stability is the start of a new chapter we call Olympus V3.

Our next threads will explore more of what Olympus V3 is about.

Soon you will see the perks of not being pegged to that green buck, anon.

(27/27)

In that same UI there will be a swap function that you can use when the price reaches one of the cushions or the walls.

If the discount is green, that means there is an arbitrage opportunity between the market price and the price Olympus will deliver.

(26/27)

In the Olympus UI, we will have a dashboard similar to the graphic below.

Here you’ll find all the necessary data for making trades.

(25/27)

The exact same goes for when the Low Wall breaks.

All clear? Let’s move to how you can trade this system for more $OHM.

(24/27)

When the High Wall breaks, a period of 6 days of stability will need to occur before the RBS mechanism resumes in the newly found price range.

(23/27)

The wall can break when the bid orders by the protocol run out of capacity, but buying/selling pressure remains.

The breaking of a wall is undesirable, but not detrimental.

(22/27)

The Olympus Treasury facilitates the protection and stabilization of price, but won’t defend it to depletion.

Olympus will allocate a % of their treasury towards the protection of price, but there is a possibility for either wall to break.

Let’s go over that scenario.

(21/27)

The walls are essentially market orders.

While the cushions slow down price movements, the walls will provide a hard stop.

Not only on the upside ⬆ but also on the downside ⬇

(20/27)

This creates a juicy arbitrage opportunity for traders.

They can acquire market $OHM, and exchange it with the treasury at a higher price.

(19/27)

When the price moves down past the Low Cushion, it’ll reach the Range Low Wall.

Here, the protocol will insert market orders, meaning you can exchange your $OHM with the protocol at a higher price than the market.

(18/27)

At the Range High Wall, Olympus will initiate a fixed exchange rate for $OHM.

You are able to acquire $OHM on the open market, and trade it for a fixed exchange rate in the Olympus dApp that is lower than the wall price.

(17/27)

In the case that the upward price-momentum is so strong that the range high cushion can’t force it down, then the price meets the Range High Wall.

(16/27)

But that’s not everything.

To enforce $OHM trading within a range, we have another trick up our sleeves.

Walls.

(15/27)

This should be all quite intuitive if you were already familiar with Olympus’ existing bond systems.

The biggest difference is that now the bond markets have no vesting term and are created automatically instead of by DAO policy stakeholders.

(14/27)

RBS spins up a separate instant swap market through an auction mechanism, so you can swap your $OHM for reserve assets at a discounted price.

This decreases circulating $OHM, decreases treasury reserves, and dampens price depreciation.

(13/27)