Treasury

Guppyfish14

Hi guys - i recently staked some OHM and am very excited by the protocol! That said, I am not sure i fully understand everything so was hoping someone could kindly help me understand a few questions i had. Thank you!!

Is 1 OHM still only backed by 1 DAI? Or is it backed by the value of the treasury or value of the risk free treasury?
Why is the risk free treasury value not equal to the value of dollarized stable coins in the treasury?
Why are some bonding yields negative?
What is the ultimate “real world use” of OHM?

Thank you!

RicoHanes

Hi, Guppy ! I will give this a try based on my understanding and just an FYI, those are great questions !

1 OHM is backed by 1 DAI, Dai, however, is not pegged to the US Dollar, but the underlying investments such as US treasuries, wETH, CVX , FRAX…

2. I believe due to the constantly changing value of the underlying purchases made by the project, the dollar value would not reflect the true value of the RISK FREE TREASURY VALUE on any given moment
If the premium exceeds the income the investor will receive during the holding period = Negative yield
According to my research, the OHM team is hoping to turn the OHM token into the currency of DEFI or Web 3.0 over time. Being Decentralized and not being pegged to the US Dollar, gives the project a pretty good chance for adoption over time.