What is (3,3) meme

Beginner
5m

The (3,3) meme originated from OlympusDAO ($OHM).

What is $OHM

$OHM is now an asset-backed currency.

Think of the OlympusDAO as a web 3.0-version Federal Reserve Bank, with various assets acting as reserves in its treasury. As each $OHM is backed by at least $1-worth assets in the treasury, the protocol would buy back and burn $OHM when it trades below $1. This has the effect of pushing the $OHM price back up to $1. Besides, unlike those real Fiat currencies, $OHM is not pegged to any assets, its price is therefore not considered to be stable. On the other hand, theoretically, $OHM could always trade above $1 as the smart contract imposes no upper limit, with a floor price.

Simply put, pegged = 1, backed ≥ 1.

Utility of $OHM

According to the protocol, there are three options for ohmies (e.g. The holders of $OHM): staking, bonding, or selling.

Staking

Ohmies can stake their $OHM to earn rebase rewards. Once they choose to stake, $OHM would be locked while they will receive an equal amount of $sOHM, which is transferable and composable with other DeFi protocols. The $sOHM balance rebases automatically at the end of every epoch.

When participants choose to unstake, they will receive $OHM while the corresponding amount of $sOHM will be burnt.

Bonding

Instead of staking their LP (liquidity provider) tokens for farming rewards in a pool, participants can exchange their LP tokens for $OHM at a discounted rate. The delivery won't happen on spot. As the protocol won't sell these LP tokens, the liquidity is then effectively locked within its treasury and becomes a part of the reserve in the treasury (PCV, Protocol Controlled Value).

What is an LP? What's the interest in doing so? Please refer to the content: What is Liquidity & LP (pool)

Prisoner's Dilemma

We have to talk about the Prisoner's Dilemma first to better understand the (3,3) meme. Imagine such a situation:

Two prisoners got arrested after committing a crime together. However, the police haven't enough evidence to charge them, unless at least one of the two prisoners confesses. To increase the chances of obtaining a confession, the police then question both criminals separately, under the principle of "confession is lenient, resistance is strict".

Thus we say, these two badasses are in a strategic relationship. When taking one's own decision, one has to anticipate what another will do, because this will affect him as well.

(3,3)

Based on the theory of the Prisoner's Dilemma, staking would be considered the most beneficial action for all ohmies. This is because it helps increase the price of $OHM by generating positive buying pressure through the initial purchase of tokens, as well as by reducing circulating volume and increasing token scarcity.

Bonding is also considered to be biased towards positive actions, although not as much as staking, as it reduces liquidity pressure on $OHM secondary market although it does not purchase on spot directly to increase the value of $OHM. It allows users who want to buy $OHM to have a discounted purchase opportunity. At the same time, before they get the "discounted" $OHM, they actually need to face a lock-up period to avoid direct selling pressure.

The sale of $OHM is considered net negative because it puts downward pressure on the price of $OHM, and a drop in price may encourage other ohmies to sell their tokens.

Based on the previous theory and in order to display a more intuitive demonstration, the protocol has then defined the profit of staking equals +2, which of bonding equals +1 while selling will bring you a -2.

Then, we finally got the classic (3,3) table, which abstractly describes the return of each when there are two ohmies.

(3,3) represents the most profitable situation

Influence……

Immediately after OlympusDAO made a splash, many imitators, or let’s say Forks, appeared in the market. The meme then started to have more variants. For example, KlimaDAO who introduced the concept of environmental protection for (3, 3) narrative, could be noted as (🌳,🌳); Wonderland, the once most glorious OHM Fork, could be noted as (🎩,🎩). Furthermore, the form of (X, X) has gradually become a widely used tag in the Web3.0 community. People will add this meme to their bio to show their Web3.0 identity.

The (3,3) meme has become an abstract and intuitive cultural symbol within the cryptocurrency community with an extended meaning that goes far beyond DeFi or staking.

You might also be interested in the following content:

Meme

Web3

What else do you want to learn?

Send
delate
Use TokenInsight App All Crypto Insights Are In Your Hands
Open