As DeFi veterans, Origin understands that proactive security and user protection is of paramount importance. Both OUSD and OETH boast cutting-edge mechanics that serve to protect users and their funds from external black swan events that tend to spread rapidly in the on-chain arena.
Origin DeFi’s Dripper further bolsters these platforms by stabilizing yield distribution and minimizing the impact of irregular yield spikes.
The OUSD and OETH Drippers harvest rewards tokens generated by each protocol's strategies. Each Dripper then disburses this yield to OToken holders over a 7-day period.
The impact of this approach is two-fold. Users can enjoy more stable APYs without needing to stress over large spikes caused by broader volatility. At the same time, this feature helps prevent attackers from exploiting OUSD or OETH. By dispersing yield over 7 days, the Dripper reduces the likelihood of profitable flash loan attacks on Origin DeFi’s tokens.
Like the rest of Origin DeFi’s mechanics, the Dripper’s activity is fully transparent. Users can view exactly how yield is harvested and the rate of distribution via the OETH analytic portal.
USDC’s de-peg earlier this year offers a searing example of the Dripper’s importance. On March 10th, USDC issuer Circle confirmed that $3.3B of its reserves were at risk following the collapse of Silicon Valley Bank.
As a result, USDC fell nearly 20% to $0.82, wreaking havoc across DeFi. The seismic event saw OUSD’s APY briefly spike to more than 170%.
With increased volatility on AMMs, the Dripper was able to spread out yield over a 7-day period. A large factor that impacted OUSD APYs during the USDC depeg was the OUSD vault’s redeem fee, which further protects long-term holders from yield dilution. As long-term holders continue holding their OTokens, they earn ancillary yield from the vaults’ redemption fees. These fees incentivize investors to hold their tokens in times of volatility, benefiting those who are long-term oriented.
Thanks to the Dripper’s meticulous integration, yield was still disbursed smoothly despite DeFi’s heightened volatility at the time. Further, redemption fees caused a large spike in APYs, incentivizing investors to continue holding their positions.
Users of both OETH and OUSD can rest assured that their yield is protected against future liquidity events, which are still commonplace due to the industry’s nascency.
The Dripper is one of many mechanics that evidence Origin’s unerring commitment to protocol security and stability.
Origin DeFi’s cutting-edge yield generation platforms have been rigorously audited by some of the space’s leading firms, including OpenZeppelin, Certora, and Trailofbits. Further, OUSD and OETH boast open-source codebases that allow anyone to monitor and flag issues.
By building with a user-centric ethos steeped in transparency and innovation, Origin DeFi continues to push the boundaries of on-chain yield generation while maintaining robust security and usability.
Explore OETH’s newly improved analytics dashboard to discover how Origin Ether achieves its outsized APYs.
