Cooler Loans Review 2026: Olympus DAO's Fixed 0.5% APR Loans

Cooler Loans is the native lending protocol of Olympus DAO. Borrowers deposit gOHM as collateral and borrow stablecoins at a fixed 0.5% APR, according to DefiLlama. It runs on Ethereum and is categorized as lending.

DefiLlama shows about $217 million in total value locked, with a 3.9% decline over the last seven days. The listing date on DefiLlama is February 2026, which reflects when it was tracked there rather than necessarily when the product launched. Public reporting references Cooler Loans V2 from May 2025, so the product predates the listing.

The protocol's own token is OHM. DefiLlama lists no audits for Cooler Loans, and the project does not provide liquidation parameters or other terms, so this review is limited to the high-level design.

Cooler Loans is a collateralized lending protocol. A borrower locks gOHM, the governance form of Olympus's OHM token, and in return receives stablecoins. The loan is backed by the collateral rather than by credit checks, as with most DeFi lending.

The interest rate is fixed at 0.5% APR according to DefiLlama, rather than moving with market supply and demand. Public reporting indicates that V1 used a Clearinghouse that escrows collateral loan by loan, and that a V2 version was introduced. The project does not describe the exact mechanics of repayment or liquidation.

Because the lender is tied to Olympus DAO, the product also serves the DAO's wider design, which includes protocol-owned liquidity. Loans give holders liquidity without selling OHM exposure, but a falling collateral price can still put a position at risk.

The headline cost is a fixed 0.5% APR on borrowed stablecoins, as stated in the DefiLlama description. That is the only fee figure.

Other costs are not published publicly: origination fees, liquidation penalties and any treasury-related charges. Ethereum gas fees apply to every transaction. Users should check the loan terms in the Olympus app before confirming a borrow.

DefiLlama lists zero audits for Cooler Loans, and public sources include no audit reports, incident history or details on liquidation. That does not mean the code is unaudited, only that the information was not available here. Users should look for audit reports in the Olympus documentation.

Main risks include smart-contract bugs, volatility in gOHM collateral and Olympus DAO governance decisions. Loans are non-custodial in the usual DeFi sense, but the borrower's collateral is locked in protocol contracts. Regulatory status is not described publicly.

Cooler Loans is for OHM and gOHM holders already familiar with Olympus DAO who want to borrow stablecoins against their position. It is less relevant for users holding other assets, or for anyone who wants diversified collateral options or a long audit history in the data.