Understanding Caps
Protocol-owned liquidity
Capitalization allows the end-user to unlock DAMO at a discount or premium.
Cap is the name given to the instrument deployed to facilitate the transaction of discounted DAMO and POL. Capitalization was inspired by the mechanism used to acquire POL for Olympus DAO.
Capitalizations will offer different discount rates that will be monitored by the DAO. This can make cap prices also fluctuate with what is demanded for the DAO's treasury. Protocol Owned Liquidity guarantees that there is always an adequate market for $DAMO, which is used for voting and leverage within the protocol.
Users who provide liquidity for DAMO & AVAX receive an LP token in which they can exchange for discounted DAMO. The DAMO will be vested over a 7-day period.
Last modified 8mo ago