Price crash we see is caused by devaluation of overall crypto market.
Crytpo itself carries high risk and token like OHM adds another layer of risk on top, so this is high risk asset and when crypto market is falling profitability of bonds is negative - noone wants to invest. Inflow dries out and we have real inflation problem.
When overall crypto market turns round - OHM will be an attractive option again.
Basically crypto market is falling - OHM has negative returns - so people leave.
Increase in interest rate should in theory compensate those who stay but how can you fund higher rate of return when DAO has negative yeld?
Clever mechanism is needed to maintain profitability in falling markets - because this will keep happening if not solved.
This is not an easy problem but one way is for treasury accumulate OHM reserves and engage in price stabilization on ongoing basis instead of just at the low end.
This should prove very profitable for the DAO on the way up and provide ongoing stability buffer on the way down.
