Market and Industry Background Analysis

2.1 Global Financial System Fracture: Fiat Credit Crisis and Sovereignty Failure

In the past decade, although the global financial system appeared prosperous, the seeds of collapse had long been sown. Central banks around the world have continuously diluted currency value through quantitative easing policies, causing fiat currencies to gradually lose their credit anchors. Since 2020, the Federal Reserve and the European Central Bank have implemented unlimited easing, bringing short-term liquidity prosperity but also increasingly overdrawn national credit behind fiat currencies. Especially in the post-pandemic era, debt defaults, currency devaluation, and fiscal deficits have become common global issues. Government sovereignty is gradually becoming a symbol of dysfunction.

At the same time, traditional sovereign governance is losing appeal among the new generation of digital economy participants. Intergenerational trust rupture, geopolitical conflicts, and information asymmetry are tearing apart the faith in the “Nation—Currency—Law” trinity structure. In this global structural fault line, humanity must, for the first time, seriously confront a question: If traditional financial and sovereign systems are no longer trustworthy, what should we rely on to construct the next generation of order?

Olympus Pact sees this crack, and does not attempt to patch the institutional ruins of the old world, but rebuilds the foundation of order in the digital world through protocol sovereignty and on-chain governance.

---

2.2 DeFi’s Current Status and Dilemma: Liquidity Illusion and Governance Dilemma

Decentralized Finance (DeFi) was once regarded as the terminator of traditional finance, sparking a protocol boom from 2020 to 2021. TVL indicators soared, and many protocols achieved exponential growth in a short time. However, this “boom” soon revealed structural problems: most DeFi protocol growth was built on high-yield incentives and speculative sentiment, lacking endogenous value support and stable cash flow loops.

The liquidity illusion is the first trap of DeFi. Protocols attract TVL through high inflation or airdrop subsidies, but in the absence of real asset anchoring, such liquidity is like a mirage, prone to collapse at any moment. The governance dilemma is the second, more hidden risk. Most protocol governance still relies on token-based voting, with large holders monopolizing governance rights, while ordinary users can “participate but not change.” Protocols ultimately slide into centralized black boxes wrapped in technical façades.

Olympus Pact has a clear systemic reflection on these issues and does not intend to repeat the mistakes of DeFi 1.0 and 2.0. Instead, it reexamines the “underlying structure of the financial system” and the “confirmation logic of governance power,” proposing a new paradigm of protocol civilization.

---

2.3 The Inevitability of the Rise of On-Chain Sovereignty and Protocol Civilization

As traditional national sovereign systems gradually fail and DeFi falls into structural stagnation, more and more people are beginning to realize that true transformation should not remain at the surface of technology or financial forms but return to the fundamentals of “institution.”

Protocols are no longer just tools for automated contract execution, but will become the carriers of a new era’s order. On-chain sovereignty, on-chain governance, on-chain credit, and on-chain identity—concepts once seen as “future imagination”—are now gradually being realized through technology and entering the social domain.

The concept of “signing is sovereignty” arises accordingly. The core of protocol civilization is not who owns the most assets, but who truly participates in the making of rules and the signing of the protocol. This structure, which establishes sovereign power through “participation behavior” rather than “asset quantity,” is becoming the fundamental form of the next-generation protocol system.

Olympus Pact is built on this judgment. It no longer defines users as “consumers” or “speculators,” but confirms their identity as on-chain signers—that is, the true builders and guardians of the protocol.

---

2.4 The Historical Opportunity of Olympus Pact’s Emergence

At this historical juncture where macro disorder intersects with the collapse of the DeFi structure, Olympus Pact is not a project “trying to save the old order,” but a system creating a new order. It absorbs all the experience and lessons of OlympusDAO and completes a full system reconstruction through three years of accumulation.

We not only inherited the concept of POL (Protocol-Owned Liquidity), but also established RWA-backed treasuries and cash flow loops; we not only retained the staking model but upgraded it into a more sustainable explosive compound interest system and energy incentive mechanism; we not only designed on-chain governance but also created a signer sovereignty system, realizing the triple binding of identity, power, and income.

Such a system could only be established at this moment. Because the cracks in the world have already appeared, faith in the old rules has loosened, and users are no longer satisfied with participating—they want to write. The timing of Olympus Pact’s emergence is neither too early nor too late—it arrives precisely at the gateway of the rise of protocol civilization. It is not a new protocol, but an entrance to a new world.