Fri. Dec 9th, 2022

OUSD

The first stablecoin that earns a yield while it’s still in your wallet

Origin Dollar (OUSD) is a new stablecoin that was initially launched in September 2020 on the Ethereum network. Its design is superior to existing stablecoins because OUSD captures competitive yields while being passively held in wallets.

Background

In 1999, Yu Pan, Origin’s R&D engineer, and his fellow PayPal co-founders conceived of creating “the new world currency”, complete with interest yielding strategies and debit cards without having to connect to traditional banking systems. Several pivots and an eBay acquisition later, PayPal dropped its ambitions in this area.

Almost two decades later, Tether introduced the concept of a USD-denominated stablecoin in 2014. Since then, stablecoins have proven themselves as an ideal way of transferring value without exposing users to the price volatility of free-floating currencies. Today, more value is transferred via Tether than with Bitcoin. Meanwhile, Decentralized Finance (DeFi) has experienced an explosion of growth with billions of dollars of capital now locked up in smart contracts that generate yields from lending and trading protocols.

One of the problems with existing stablecoins is that users have to constantly choose between holding an easily spendable coin and earning yields by locking their tokens up in smart contracts. For example, users that lock up USDC in Aave cannot spend a portion of that USDC simultaneously. Expensive Ethereum gas fees serve as “switching costs” each time those users want to switch between spending mode and earning mode.

To make matters worse, yields from lending and trading activities change rapidly. Sophisticated DeFi yield earners are familiar with constantly having to rebalance their portfolio of assets across many competing platforms. This is time-consuming and expensive as gas fees once again eat into yields. In addition, it is time-consuming to calculate real ROI as APYs are unstable and constantly fluctuating. There isn’t an easy unit of account. As a result, while DeFi is growing extremely rapidly, it still makes it difficult for many cryptocurrency users to participate.

With OUSD, there’s no need to unwind complicated positions when you want to spend your OUSD. You can transfer it freely without having to pay gas to unlock spendable capital. In addition, OUSD gives you access to some of the highest-earning opportunities across DeFi with none of the hassles. The OUSD smart contract will deploy your underlying capital to a diversified set of yield-earning strategies, rebalancing over time to achieve great yields while diversifying risk. Earnings automatically accrue in your wallet and compound continuously while you hold OUSD. Again, no staking or lockups are required. OUSD also serves as an ideal unit of account. DeFi investors no longer need complicated spreadsheets to calculate their earnings as they can easily see their constantly updated OUSD balances in real-time as their interest compounds automatically. OUSD is an ideal stablecoin for DeFi yield farmers and novice cryptocurrency users alike.

Created by cryptocurrency and fintech veterans, the Origin Dollar is brought to you by the team at Origin Protocol that includes serial entrepreneurs, early cryptocurrency investors, early employees at YouTube, engineering managers at Google/Dropbox, and one of the Paypal co-founders, Yu Pan.

For those interested in diving into the technical details of how it works, these docs are a great place to start. We encourage developers to audit and contribute to our Github (100% open-source). Our team hangs out in Discord if you have questions or need help getting started.

How It Works

100% Backed and Stable

Origin Dollar (OUSD) is an ERC-20 compliant token for the Ethereum network.

OUSD is a stable currency that is backed 1:1 by other stablecoins like USDT, USDC and DAI. As a result, 1 OUSD should always be very close to 1 USD in value.

1 OUSD = 1 USD

Minting OUSD

Users convert their existing stablecoins (currently USDT, USDC, and DAI) to OUSD at the official Origin Dollar DApp. Issued OUSD begins accruing compounding yield immediately.

Redeeming OUSD

Users can convert their OUSD back into other stablecoins at any time using the Origin Dollar DApp. A 0.5% exit fee is charged upon redemption and is distributed as additional yield to the remaining participants in the vault. The fee serves as a security feature to make it difficult for attackers to take advantage of lagging oracles, preventing them from syphoning stablecoins from the vault in the event of mispricings of of the underlying assets. The fee exists to incentivize long-term holders over short-term speculators.

Upon redemption, the smart contract will determine which stablecoin(s) to return to the user. In the current implementation, the vault will return coins in the same ratio as the current holdings. This lack of user optionality also protects the vault as a whole in the event that any of the supported stablecoins loses its peg to the dollar.

There is a 0.5% exit fee and the user doesn’t get to pick which stablecoins they receive.

Automated Yield Farming

OUSD generates yields by deploying the underlying stablecoins that were deposited to the OUSD smart contract to other DeFi protocols such as Compound, Aave, Uniswap, Balancer, and Curve. It is expected there will be new diversified strategies added to the vault every month. Collected interest, trading fees, and rewards tokens are pooled and converted to stablecoins to produce OUSD-denominated yields. Over time, the protocol will move assets in and out of different liquidity pools in order to provide the best yield to the holders of OUSD.

Elastic Supply

The generated returns are passed on to the holders of OUSD via constant rebasing of the money supply. OUSD constantly adjusts the money supply in response to the yield the protocol has generated. This allows the price of OUSD to stay pegged at $1 while the balances in token holders’ wallets adjust in real-time to reflect yields that have been earned by the protocol.

The end result is a stablecoin that is easy to spend, earns outsized yields automatically, and is more desirable to hold than existing stablecoins.

Getting Started

These docs are intended to explain how OUSD works, communicate the potential risks and benefits, and provide a guide for developers who wish to contribute to our codebase or integrate OUSD into their products. Here are a few ways for you to dive in and get started.

Mint or Redeem

The OUSD Mint allows anyone to create or trade in OUSD tokens using our DApp and a web-3 enabled cryptocurrency wallet like Metamask. This is the native way to get OUSD, especially if you want a large amount that could risk moving the market on other exchanges.

Buy on Exchanges

For small amounts, the easiest way to start earning with OUSD is to buy it on an exchange. We anticipate that OUSD will soon be available on many more decentralized and centralized exchanges.

Decentralized exchanges:

Centralized exchanges:

Adding OUSD to Your Wallet

The main ERC20 address for Origin Dollar (OUSD) is: 0x2A8e1E676Ec238d8A992307B495b45B3fEAa5e86

If your OUSD does not automatically show up in your wallet, you should be able to add it manually using the address above. If you are planning on storing your OUSD in a multi-sig wallet, be sure to opt-in to receive yield. We want to have OUSD supported by as many wallets as possible and included on all the various lists of well-known tokens. We would greatly appreciate any help you can offer in this area.

Integrating OUSD

OUSD is a non-standard ERC-20 token that requires custom integration work for most applications that wish to support it. In particular, it is important for developers to understand how our elastic supply works as this can easily cause unexpected behavior.

If you are a wallet provider or crypto exchange that is interested in supporting OUSD, please refer to the following guides:

Rebasing & Smart contracts

If you are using a multi-sig wallet or another smart contract that wishes to participate in the rebasing aspect of OUSD you must call OUSD’s rebaseOptIn() function. This only applies to smart contracts as standard EOA wallets are enrolled automatically.

Multi-sig wallets or other smart contracts must callrebaseOptIn()to earn yield.

One of the challenges with rebasing currencies like OUSD is that they don’t work very well with automated market makers (AMM’s) like Uniswap or Balancer. These decentralized exchanges rely on supply and demand to determine the price of the assets being traded. It messes up the math when the amount of OUSD held by the contract changes unexpectedly due to new yield being generated.

We previously added a bandaid that called Uniswap’s sync() function every time a rebase() was triggered on OUSD’s contracts. While this prevented users from seeing an ugly error message when they tried to trade OUSD on Uniswap, it still introduced loss into the system. After calling sync, Uniswap detects that there is more OUSD than USDT in the vault, which incorrectly pushes down the price of OUSD relative to USDT. While we can count on arbitrageurs to correct the price, it’s better if we can avoid this loss altogether. Given the ever-growing number of competitive AMM’s and forks of Uniswap, it would quickly become infeasible, not to mention gas-expensive, to try and special-case all of them.

After much discussion, we decided that the most scalable solution was to make smart contracts explicitly opt-in to receiving yield via the rebasing mechanism. This fixes the issue with the expanding supply on AMM’s while still allowing multi-sig wallets and other smart contracts the opportunity to still participate and earn yield.

If you are deploying a contract and intend to callrebaseOptIn()to earn yield you cannot call it from the contracts constructor. The contract must be deployed before it can be called.

If you are using a multi-sig wallet like Gnosis Wallet or Gnosis Safe, you will need the latest implementation contract address for OUSD and the corresponding ABI. Once you add those, you will be able to call the rebaseOptIn() function to opt into receiving yield via rebasing orrebaseOptOut() to turn it off again.

Architecture

OUSD is made up of a series of smart contracts. Each of these contracts is wrapped in a proxy contract that can be upgraded via the governance protocols.

Internally, ownership in the vault is tracked using a credits system that represents the percent ownership of the vault for each holder. The ERC-20 contract handles the conversion to USD terms when viewing a balance or initiating a transfer between wallets.

The Vault is responsible for minting and burning OUSD. It also enforces the percentage of assets that are deployed to each of the supported Strategies. To optimize gas costs, the vault maintains a buffer to allow most deposits and redemptions to occur without winding/unwinding assets from strategies.

API

Documentation of contracts API used by the protocol:

FAQ

Where can I buy OUSD?

Check out Getting Started to see a variety of options.

What are the costs to mint and redeem OUSD?

As with any Ethereum transaction, you will need Ether to interact with the OUSD smart contract. We have taken measures to reduce gas usage where possible, but these costs can vary.

Anytime you mint or redeem OUSD, there will be an exchange rate applied to your stablecoins deposited or withdrawn. You can read more about this in Price Oracles.

To encourage long-term holding of OUSD and to protect the protocol from attackers, an exit fee of 0.5% is charged on all redeems. You can read more about this in How Works.

How soon will my balance increase once I have OUSD?

The amount of OUSD in your wallet will grow each time there is a positive rebase event. You can read more about this in Elastic Supply. The supply is currently rebased several times per day and is usually correlated with how many people are minting and redeeming OUSD.

Why does OUSD not grow when it’s held in Uniswap, SushiSwap, etc?

By default, rebase events don’t affect the supply of OUSD that is sitting in smart contracts. These contracts can opt in to receiving additional OUSD if they are capable of handling elastic supply tokens. You can read more about this in Rebasing & Smart Contracts.

How is it possible for the APY to be so high?

You can read about our various strategies in Yield Generation. We currently get most of the yield from harvesting rewards tokens (namely COMP and CRV). Additionally, the yield increases as more OUSD is held in smart contracts that do not opt into rebasing since the underlying collateral continues to earn for the average OUSD holder.

Why is my balance increasing at a slower rate than the advertised APY?

OUSD balances increase when the supply is rebased. But the size of each rebase varies wildly depending on how much the vault has earned since the last rebase. And while most rebases collect a small amount earnings from lending strategies, other rebases involve liquidating rewards tokens or collecting fees. As a result, the yield will vary significantly during short time periods.

What about the hack? Is OUSD safe?

On November 7th 2020, OUSD was exploited for 7M USD due to a previously undetected reentrancy bug. You can read more details about the hack on our blog as well as the detailed compensation plan for taking care of the affected users. Origin Dollar was relaunched in December after completing multiple audits and security upgrades. You can learn more about the steps taken to secure the protocol in our relaunch announcement.

Elastic Supply

Elastic Supply. Stable Price.

OUSD works differently than most tokens. Instead of the price increasing as the value of the assets under management increase (as with Compound cTokens or Yearn yTokens), the value of one OUSD remains constant at approximately $1. Instead, the contracts constantly adjust the monetary supply and automatically updates the balance in every token holder’s wallet to reflect the yield that has been earned by the protocol.

Think of it as interest accruing in your bank account. The unit of account and value for the US dollar doesn’t change. You just get more US dollars over time as you earn interest.

This mechanism was inspired by the novel approach taken by Ampleforth, but there are some key differences that are worth highlighting:

  1. OUSD is 100% backed by other stablecoins and does not have the same challenge maintaining the peg to the dollar. Given the ease of minting and redeeming OUSD, we can count on arbitrageurs to ensure the peg is maintained.
  2. OUSD rebasing will only increase supply since the amount of OUSD minted is tied to the realized gains earned by the underlying strategies. Your principal is protected as long as nothing goes wrong with the underlying lending/AMM and stablecoin protocols. Your OUSD balance will never decrease, but the value could drop if there’s a failure in the underlying systems.
  3. Unlike Ampleforth, which rebases once a day, the monetary supply of OUSD is constantly being updated in real-time as yield is generated. Rebases are triggered regularly as users interact with the OUSD contracts.

Manually triggering a rebase

Anyone can trigger a rebase at any time by calling the rebase function on the vault. You can do this on Etherscan by connecting a web3 wallet.

Yield Generation

Automated Yield Farming

While the Cambrian explosion of new lending and automated market maker pools has fueled total value locked (TVL), it has also made it increasingly challenging for yield farmers to manually allocate capital in efficient and optimal ways.

Yearn has demonstrated that smart contracts can automate the rebalancing of funds across various strategies to optimally earn lending interest, market making fees, and rewards tokens. Over time, new strategies will be deployed that maximize returns while minimizing risk and dependencies.

OUSD uses the following high-level strategies for generating yield:

Lending

Unbank the Banked

DeFi lending platforms let users lend and borrow crypto assets without any middlemen. Both lenders and borrowers get more value from their crypto. Lenders earn interest, while borrowers deposit crypto as collateral to gain access to credit without traditional banking headaches. DeFi lending platforms currently provide far superior returns for lenders than are generally available in the traditional markets.

OUSD integrates with DeFi lending platforms that provide over-collateralized loans. Over-collateralization, combined with smart rules around liquidations, provide a reasonable level of security for lenders. Aave also additionally secures their lending pools with AAVE tokens respectively, further lowering risk.

OUSD integrates with leading lending providers that have a proven track record, audited smart contracts, and have successfully lent hundreds of millions of dollars without issue. We are currently integrated with the following lending platforms:

  1. Compound

Compound is a lending protocol and platform built on Ethereum and launched in September 2018. Users can earn compounding interest on or borrow assets against collateral. Each supported asset is aggregated in its own liquidity pool and interest rates are adjusted automatically based on supply and demand.

Collateral balances are represented by ERC-20 cTokens, which automatically accrue interest and increase in value over time relative to the underlying asset they represent. Users can borrow assets against the value of their cTokens. cTokens are freely transferable and can be used on many other DeFi protocols. cTokens can be redeemed for their underlying collateral at any time.

Compound is governed by COMP, an ERC-20 governance token. COMP holders can propose and vote on protocol changes or delegate their votes to someone else. COMP tokens are awarded pro rata to users of the protocol daily, split equally between borrowers and lenders. A large portion of the COMP token supply was retained by the Compound team, investors, and advisors.

Compound’s total value locked (TVL) has quickly grown to nearly $800 million, making it one of the largest DeFi protocols. COMP has a circulating market cap of over $500 million.

Compound has undergone multiple security audits by OpenZeppelin and Trail of Bits. The Compound protocol was formally verified by CertiK and has undergone economic stress testing by Gauntlet. Compound maintains a bug bounty program.

2. Aave

Aave is a lending protocol and platform built on Ethereum and launched in January 2020 by the creators of ETHLend. Users on Aave can earn compounding interest on or borrow assets against collateral. Each supported asset is aggregated in its own liquidity pool and users can choose between a variable interest rate based on supply and demand or a fixed interest rate.

Collateral balances are represented by ERC-20 aTokens at a 1:1 ratio to the underlying assets they represent. Interest is compounded automatically and paid to lenders with aTokens, meaning lenders will steadily see their aToken balance increase over time. Users can borrow assets against their aTokens. aTokens are freely transferable and can be used on many other DeFi protocols. aTokens can be redeemed for their underlying collateral at any time.

Aave supports flash loans, which are uncollateralized loans where users borrow and repay the balance of the loan in a single transaction, meaning flash loan users do not need to put up any initial capital. Flash loans are a complex product aimed at developers and can be used to arbitrage across multiple DeFi protocols.

Aave is currently governed by LEND, an ERC-20 token that was formerly the utility token for ETHLend. Aave has announced a transition to fully decentralized governance that includes a token swap where users exchange LEND for AAVE, a new ERC-20 governance token with staking rewards. Some AAVE will be distributed to users of the platform in a liquidity mining campaign.

Aave’s total value locked (TVL) has quickly grown to over $1.2 billion, making it one of the largest DeFi protocols. LEND has a circulating market cap of over $700 million.

Aave has undergone security audits by OpenZeppelin, Trail of Bits, and Consensys Diligence. Aave maintains a bug bounty program.

We are planning on integrating the following lending platform:

3. dYdX

Coming soon. DyDx has not yet been integrated.

dYdX is a trading and lending protocol and platform built on Ethereum and launched in May 2019. Users can trade assets on dYdX’s non-custodial, decentralized exchange or participate in borrowing and lending. The lending protocol enables margin and futures trading. Interest rates are adjusted based on supply and demand and only short term loans are offered.

Liquidity for assets available for borrowing and lending are pooled together by asset type. Interest paid to lenders is accrued automatically and borrowers must put up collateral to take out a loan.

dYdX also supports flash loans, which are uncollateralized loans where users borrow and repay the balance of the loan in a single transaction, meaning flash loan users do not need to put up any initial capital. Flash loans are a complex product aimed at developers and can be used to arbitrage across multiple DeFi protocols.

dYdX has around $40 million in total value locked (TVL) at the time of this writing. dYdX does not have a native token.

dYdX has undergone security audits by OpenZeppelin and Bramah Systems.

Market Making

Own your Stake in Decentralized Exchanges

Automated market makers (AMMs) have quickly risen as the preferred form of decentralized exchange on the Ethereum network. This is in part due to the difficulty of supporting order book DEXes on Ethereum 1.0 that can rival the instant and low-slippage experiences on centralized exchanges. Further, AMMs like Uniswap are relatively user-friendly and gas-efficient to use.

AMMs can only enable new markets when liquidity providers supply liquidity (e.g. multiple tokens for given trading pairs or pools). In return for providing liquidity, liquidity providers are rewarded with trading fees when other users swap tokens. For example, when traders swap USDT for USDC on Uniswap, they are currently charged 0.3% on top of gas fees. These fees are distributed pro-rata to liquidity providers on the USDT-USDC pair based on the percentage of total liquidity that they have provided.

The OUSD protocol routes USDT, USDC, and DAI to highly-performing liquidity pools as determined by trading volume and rewards tokens (e.g. Balancer rewards BAL tokens to liquidity providers). Yields are then passed on to OUSD holders.

We are currently integrated with the following automated market maker:

Curve

Curve is a decentralized liquidity protocol and exchange on Ethereum for stablecoins and wrapped BTC, launched in January 2020. Users can swap between popular ERC-20 stablecoins or between ERC-20 representations of bitcoin. Liquidity providers facilitate trading and earn fees.

Curve is an Automated Market Maker (AMM) where each market has an associated liquidity pool with two or more assets that should have the same value, like USDT, USDC, DAI and TUSD, which are all US dollar pegged stablecoins. The exchange rate between each stablecoin and their relative weights are determined by an algorithm based on supply and demand. Arbitrageurs act to normalize these exchange rates.

Some of Curve’s liquidity pools earn extra fees for liquidity providers on top of the exchange fees from traders. Curve offers stablecoin pools integrated with Compound, yearn.finance, and Synthetix. The assets in each liquidity pool are provided to those platforms to generate additional yield which is passed on to each pool’s liquidity providers. Liquidity Provider (LP) tokens are given to pool participants and can be redeemed for their initial liquidity supplied plus accrued fees and yield. LP tokens can also transferred for use in other protocols.

Curve is governed by CRV, an ERC-20 governance token. CRV holders can vote on protocol changes. CRV holders can stake their tokens for additional voting power proportional to time staked. CRV is continuously awarded to liquidity providers and a large portion of the total supply of CRV was allocated to the team and investors on a continuous vesting schedule.

Trading volumes on Curve are often over $50 million daily. Curve has a Total Value Locked (TVL) of over $1 billion by liquidity providers at the time of writing.

Curve has undergone two audits by Trail of Bits and maintains a bug bounty program.

Rewards

Collecting Rewards

In addition to collecting interest from lending and fees from market making, we intend to automatically claim and convert the bonus incentives that are being distributed by many of the DeFi protocols. For example, Compound gives away COMP tokens, Balancer gives away BAL tokens, and Curve gives away CRV tokens. These bonus rewards will be regularly converted into stablecoins, deployed in the market, and distributed to OUSD holders in the form of additional yield.

Today, rewards are a significant factor for yield farmers as they represent a large percentage of their returns. We anticipate that the OUSD protocol will be upgraded over time to take advantage of the most attractive yields available across the DeFi landscape. The protocol will factor in the market value of the various rewards being offered when deciding how to best allocate resources.

OUSD is able to generate higher yields than competing protocols due to a combination of important design decisions that amplify the rewards that are returned to OUSD holders:

  • Exit fees are returned to the pool, rewarding long term holders
  • Price oracles favor the collective over the individual, again rewarding long term holders
  • Smart contracts must manually opt-in to earn yield. This allows the protocol to put more capital to work than would be otherwise possible.
  • Smart strategies balance risk and reward more effectively than deploying capital in any single underlying strategy.

Supported Stablecoins

It is important to understand that OUSD is only as strong as the stablecoins that are backing it. Any loss to the underlying assets will cause a similar loss to the value of OUSD.

Currently, OUSD supports the following stablecoins:

USDT

Tether (USDT) is a fiat-pegged stablecoin that was initially built on top of Bitcoin via the Omni Layer Protocol. In September 2017, Tether announced they would be launching additional ERC-20 tokens for United States dollars on the Ethereum blockchain.

Each Tether issued into circulation is said to be backed by a one-to-one ratio with the equivalent amount of fiat currency held in a custodial account by Tether Limited, a Hong Kong-based company with close ties to the cryptocurrency exchange, Bitfinex.

Despite the controversyaroundthe company’s failure to provide a promised audit showing adequate reserves backing tether, USDT is still the world’s largest stablecoin by market cap and currently the fourth-largest cryptocurrency after BTC, ETH and XRP.

USDC

USD Coin (USDC) is a fiat-pegged stablecoin launched as a ERC-20 token on the Ethereum blockchain in October 2018. USDC is pegged to the US dollar and can easily be redeemed for US dollars.

Each USDC is backed by a 1:1 ratio with the equivalent amount of fiat currency held in custodial accounts by members of Centre, a consortium founded by Circle and Coinbase. Members of Centre are regulated financial institutions based in the US. Monthly audits of reserves are published by Grant Thornton LLP.

USDC is the world’s second-largest stablecoin after USDT and has quickly grown to over $1 billion in circulation. However, USDC remains far behind USDT’s $12+ billion in circulation.

DAI

Dai is a fiat-pegged stablecoin launched as a ERC-20 token on the Ethereum blockchain in December 2017. A major upgrade from single-collateral Dai (SAI) to multi-collateral Dai (DAI) was completed in November 2019. Dai is pegged to the US dollar.

Dai is minted by users locking up crypto assets such as ETH or USDC as collateral in a collateralized debt position (CDP) called a vault. Previously, only ETH was accepted as collateral. The reserves and status of each vault can be viewed on the blockchain in real-time. The health of these vaults and the Dai stablecoin are closely monitored.

Dai is the world’s third-largest stablecoin with over $400 million in circulation. In addition, cDAI and aDAI, synthetic versions of Dai on the lending platforms Compound and Aave, combine for over $600 million in circulation.

None of these stablecoins are perfect, but we selected them because of their widespread usage. While these stablecoins have lost their USD peg on multiple occasions, they have demonstrated resiliency in eventually getting back to their 1 USD targets.

It is important to note that all these stablecoins introduce non-trivial counter-party risk. Tether, in particular, has had well-documented banking troubles and regulatory challenges. In addition, both USDT and USDC have backdoors that grant their issuers the power to freeze money in their holder’s wallets. While DAI does not have any direct backdoors, it’s assets can also be negatively impacted since USDC is accepted as collateral for minting DAI.

Despite these concerns, there are already billions of dollars betting on the security of these stablecoins. It is possible that additional stablecoins will be added to the protocol over time. Support may also be removed if any of these stablecoins prove to be too unreliable or put OUSD holders funds in jeopardy.

Fund Management

The OUSD smart contract aggregates all users’ stablecoin deposits into a single pool of investable assets. Funds are then allocated across one or moreearning strategies at any given moment in time. The Vault favors high-yield strategies but also seeks to maintain diversification across multiple strategies. Diversification removes single points of failures and mitigates risks.

In contrast to Yearn Vaults, TokenSets, or Zapper opportunities, users do not select individual strategies. All deposited stablecoins and consequently all OUSD tokens are fungible.

Earning Strategies

Earning strategies put deployed capital to work across various DeFi platforms. The Vault will determine which strategies are active and what percentage of deployed capital they will receive. These strategies will be upgraded and replaced over time.

Strategist

The initial version of the OUSD Vault smart contract gives each valid strategy a simple weight between 0% and 100% to perform simple asset allocation. These weights will be shifted often via updates by Origin in the short-term and by decentralized governance in the long-term.

Diversification

Diversification across multiple underlying DeFi platforms will reduce smart contract and other systemic risks. The smart contract will calculate current and expected APYs in an effort to provide competitive returns to OUSD holders. Over time, the Vault contract will be upgraded to intelligently and autonomously shift between strategies without any manual intervention. For example, the Vault will automatically shift capital between various lending strategies to optimize for yields.

However, it is still expected that certain risk parameters or decisions on whether certain strategies will be included in the automated decision-making engine will be made through governance votes.

Progressive Decentralization

OUSD is designed to be a decentralized protocol governed by many stakeholders all over the world. We believe that the minters and holders of OUSD should collectively determine important protocol decisions as soon as possible.

That being said, in the very early days, it is imperative that the core engineering team can act quickly and decisively to build the foundational parts of the protocol.

Decentralization will progress across four phases rapidly over the next few months. It is our intent to relinquish control and governance to the community as soon as possible.

OGN Staking

Origin Token (OGN) is intended as the governance token for OUSD and OGN will play an increasingly important role as the Origin Platform becomes more decentralized. Today, users can stake their OGN tokens to earn additional OGN after a chosen staking period has elapsed.

Visit the OUSD DApp in a web3-enabled browser to stake your OGN.

The initial staking program offers three staking periods and respective yields:

  • 30-day staking period: Earn 7.5% annualized interest
  • 90-day staking period: Earn 12.5% annualized interest
  • 365-day staking period: Earn 25% annualized interest

Staked tokens will be locked for the duration of the staking period. After each staking period ends, you will be able to claim both your initial OGN (principal) and yield.

OGN is currently trading on top exchanges like Binance, Huobi, Upbit, Bittrex Global, and dozens more. Visit the Origin website to learn more about OGN or check out the OGN Dashboard to track important token metrics.

Links:

https://github.com/originprotocol/origin-dollar

https://ousd.com/