Degen

One of the most creative tokenomics designs to date is OlympusDAO’s (OHM) rebasing and bonding mechanism, which introduced an innovative model for protocol-owned liquidity and sustainable yield generation.

Protocol-Owned Liquidity (POL):
Instead of relying on users to provide liquidity (like most DeFi projects), OlympusDAO used bonding to acquire its own liquidity. Users would sell assets (like DAI or LP tokens) to the protocol at a discount in exchange for OHM. This meant the protocol owned its liquidity and wasn't at the mercy of yield-hunters pulling out capital.

Rebasing Mechanism:
The token supply could expand or contract automatically via a rebasing function. If the protocol's treasury had excess reserves, the supply of OHM would increase, rewarding holders proportionally. This kept the staking yield sustainable, at least in theory.

Game Theory and Memetics ("3,3"):
Olympus leaned heavily into game theory. The “(3,3)” meme referred to the idea that everyone ke community—an underrated 