What is OliveDAO?
Starting on our journey to know all about OliveDAO
Last Updated: 18 April 2022
Olive trees are famous for living for thousands of years, and they require little in terms of upkeep, as they have evolved over the centuries for poor, stony soils, making them a symbol of longevity and health. They are loved for their fruit which can also be pressed for oil, and the wood of the tree burns even when wet, making Olive an eternal giver.
For the citizens of Athens, Olive represented prosperity, food, fuel, and liquid gold, providing them with everything they ever needed. The name Olive picked itself as OliveDAO facilitates tokenized liquidity and represents a new start for web3.
OliveDAO is a decentralized protocol designed to provide deep, sustainable liquidity to web3 protocols (DeFi/NFT in particular). It can be thought of as a decentralized market maker providing liquidity to your web3 token across different AMMs/Centralized Exchanges at no extra cost to you.
Liquidity Providers (LPs) provide assets via single-sided staking into the system and Liquidity Directors (LDs) direct that liquidity to AMMs/Exchanges via voting with their veOLIVEs.
​veOLIVE is a non-standard ERC20 implementation, used within OliveDAO to determine voting power.
Simply put, OLIVE can be thought of as generalized or tokenized liquidity. OLIVE holders are able to generate liquidity on demand for whatever tokens they want, on whatever exchange they want, by controlling and directing OliveDAO's TVL. OliveDAO enables unique composability opportunities for new and existing token projects and DAOs. Furthermore, the deep liquidity made possible by OliveDAO will enable complex new products and behaviours to emerge and will help in upkeeping the health of markets.
OliveDAO has several different mechanisms and guardrails in place to mitigate Impermanent Loss (IL) to ensure that Liquidity Providers can always claim their underlying assets deposited, 1:1. The protocol captures fees from providing liquidity across DeFi. Over time, this will allow OliveDAO to build a strong reserve of various assets as part of its Protocol Controlled Assets (PCA). In the end, the PCA will be controlled by veOLIVE holders via decentralized governance.
This document represents a continuous work in progress. We will endeavour to keep this document current with the latest developments. But due to the iterative nature of our development process, some implementations might differ from what is mentioned in this document.
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