# pOHM: The Pod Amplifier

OHM is an unpegged, backed smart money that is encouraged to stay within a moving price range by adjusting its token supply based on market demand via a model known as ‘Range Bound Stability’ (RBS). It increases and sells supply in high demand and decreases it in low demand using buybacks funded by treasury reserves. This makes it a good choice for liquidity providers (LPs) in paired assets, offering reasonable stability with more volatility and growth than pegged stablecoins like DAI.

<figure><img src="https://lh7-us.googleusercontent.com/wAXs1ZIIKfmVOg8XuKJ-Ek--2fNeozBu64iJCjiy2duxJ4lrIXTuRhdZ_ausFfG7Ib1TDeECbdIfKFI9wThb5Xtcoqlv6aM599JZ7JGvIsIvzsyR4bZccW3L7pL1EjJN49MBTeLWqgYgg0YVkwcTmnk" alt=""><figcaption><p>You can see below how the RBS model influences the performance of OHM over the past 12 months, showing tight price ranges, paired with a slow but steady appreciation in price floor.</p></figcaption></figure>

Whilst OHM is an interesting choice for LP pairing, pOHM is even better since it is a Green Arrow Pod of OHM. This means it will appreciate vs OHM as a result of any (un)wrap fees. Additionally, the more assets it is paired against, the more potential it has for volatility. This directly translates to more arbitrage volume and more (un)wrap fees which leads to pOHM value increasing against OHM.\
\
pOHM pairing offers several advantages over a standard DAI pairing:

1. More exposure to your paired asset (pOHM value grows against OHM).
2. OHM's price has historically increased guided by the RBS model, which means pOHM price is appreciating against an appreciating asset.
3. Decreased Impermanent Loss (IL) as pOHM is a value accruing pTKN.
4. Increased volatility as a result of OHM’s floating peg means more (un)wrap fees, meaning more $PEAS rewards and burns.

Further Q\&A about OHM can be found in the Olympus [Discord](https://discord-invite.olympusdao.finance/).


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