2. The Current State of DeFi and the Need for Innovation
Last updated
Last updated
Decentralized finance (DeFi) has experienced rapid growth, offering a new alternative to the traditional financial system based on blockchain technology. By utilizing smart contracts, financial services such as lending, borrowing, trading, and asset management can be executed transparently and efficiently without intermediaries. DeFi holds great potential in expanding financial access, reducing transaction costs, and fostering innovation.
However, it is also true that the current DeFi is in its infancy and faces several important challenges. These include protocol sustainability, high price volatility, complex governance, and the need for improved user experience. These challenges are barriers to mass adoption of DeFi, and innovative solutions are needed to unlock its true potential.
In this context, Olympus DAO made a significant impact on the DeFi industry by introducing Protocol Owned Liquidity (POL) and its unique game theory called (3,3). POL is a groundbreaking mechanism that enables the protocol itself to own liquidity, thereby stabilizing token prices and providing sustainable yields. (3,3) demonstrated that cooperative behavior through staking brings maximum benefits to both the protocol and participants, creating a strong incentive for community cohesion.
Olympus Finance aims to further evolve by inheriting the advanced concepts of Olympus DAO and introducing AI agents. We believe that the power of AI can solve the challenges of DeFi and contribute to the realization of a more efficient, sustainable, and autonomously operated financial system.