How Does a DAO Acquire POL, Specifically through a Mechanism like Olympus Pro? ⎊ Path

How Does a DAO Acquire POL, Specifically through a Mechanism like Olympus Pro?

Olympus Pro is a bonding mechanism that allows a DAO to sell its native tokens at a discount in exchange for specific Liquidity Provider (LP) tokens or other reserve assets. Instead of offering high yield incentives to rent liquidity, the DAO purchases the LP tokens directly from users.

The DAO then owns the underlying liquidity, turning rented liquidity into permanent Protocol Owned Liquidity (POL). This exchange is often structured with a vesting period for the discounted tokens.

Contrast POL with “Liquidity Mining” Programs

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What Is “Protocol Owned Liquidity” (POL) and Why Is It Important for a DAO Treasury?

What Is the Discounted Cash Flow (DCF) Method and How Is It Adapted for Crypto?

What Is a Security Token Offering (STO) and How Does It Differ from an ICO?

What Is the Incentive for an Investor to Participate in a Protocol’s Bonding Mechanism?

What Is a ‘Pro-Rata’ Vs ‘Price-Time’ Order Matching Algorithm?

What Is a “Pro-Rata” Matching System and How Does It Differ from Price-Time Priority?