Five weeks ago, we announced an unprecedented plan to compensate more than 700 beta users who lost funds in the Origin Dollar (OUSD) exploit. We pledged to relaunch OUSD with multiple external audits and security improvements in the new year. We shipped a new version this month and have already seen over $2 million of OUSD minted. Today, we’re proud to announce that claims can be made for 100% of eligible balances in the form of staked OGN and liquid OUSD earning a staggering 54+% annualized yield.
Compensation can be claimed on the OUSD DApp by submitting one or two Ethereum transactions. The first transaction is to claim liquid OUSD, which is available to all eligible users. This is the only transaction necessary for approximately two-thirds of users since their losses were less than 1,000 OUSD each. When this claim is submitted, OUSD will be transferred from the compensation contract to the user’s wallet and begin earning a highly competitive yield immediately.
The second transaction is to claim and stake OGN — the highly liquid governance token of OUSD, Dshop, and the rest of the Origin Protocol. This transaction is only necessary for holders whose losses exceeded 1,000 OUSD. By claiming and staking OGN, users will immediately begin accruing additional OGN at a rate of 25% over the next 365 days. Once this staking period is up, the full amount OGN will unlock and become eligible to stake again for additional interest.
For more details on the compensation structure and how eligible balances are calculated, please refer to the original announcement. As a reminder, all claims for both OUSD and OGN must be made within 90 days (by 4:35:08 UTC on April 20, 2021). Claims can be made at ousd.com/compensation
With the relaunch of OUSD and the rollout of our compensation plan, we’re committed to ensuring that every possible security precaution is taken to protect users’ funds. We recently completed multiple audits of our smart contracts with Trail of Bits and Solidified. We’re also implementing formal verification with Certora and engaging OpenZeppelin to conduct ongoing reviews of improvements that we make to the protocol. Every aspect of our engineering and product development process has been overhauled with a security-first approach ranging from automated tooling and stricter code reviews to a bug bounty program and an optional insurance offering. We’re thoroughly reviewing and learning from other exploits in the industry and confirming that our code is not subject to the same vulnerabilities. Our top priority is to make OUSD the safest way to earn highly competitive yields from DeFi.
Many compensation recipients will now become holders of OGN — the governance token for OUSD and the entire Origin network. By participating in the OGN staking program, these token holders will not only receive interest in the form of additional OGN over time, but they also stand to benefit from the growth of OUSD. Since the relaunch, OUSD has consistently produced a double-digit annualized yield through its automated lending strategies, reward token farming, exit fees, and exchange rate spreads. We will soon be adding a mechanism for a portion of this yield to accrue to OGN. As the adoption of OUSD grows, so should the value to holders of OGN. This will be the first of many levers that will eventually be controlled by decentralized governance, which we hope to roll out later this year.
OUSD will continue to improve with the safest yield farming strategies as they evolve. We’re working on bringing back our Curve 3pool strategy with additional security improvements to help sustain a high risk-adjusted APY. We also look forward to integrating with additional projects across the DeFi ecosystem and will soon be moving forward with a solution to offer optional insurance coverage. We’re excited to be turning the corner after a difficult couple of months and know that OUSD is stronger now having gone through it. Thank you for your patience and belief in our effort to bring DeFi to the masses.
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