Origin Sonic (OS) Yield Boost, Explained

Origin Sonic (OS) introduces a unique yield mechanism that amplifies staking rewards for holders through its rebasing model. This system creates a powerful incentive to hold OS while also offering a wrapped version, wOS, that is optimized for DeFi integrations.

If you're wondering where OS yield comes from, why it's higher than standard staking rewards, or how you can use OS in DeFi, this guide will break down the different opportunities for Origin Sonic holders.

Where Does OS Yield Come From?

Origin Sonic’s yield is derived from the staking rewards generated from staking S on the Sonic network. Like traditional staking, OS accrues rewards from network validation and other onchain activities. However, what makes OS different is its yield boost mechanism:

• OS held in wallets automatically rebases, meaning holders receive additional OS over time as staking rewards accrue.
• OS held in smart contracts does not rebase unless the contract opts in.
• This means that when a portion of OS supply is held in non-rebasing smart contracts, the rebases get concentrated among wallet holders, significantly boosting their effective APY.

For example, if 50% of OS is held in smart contracts that don’t opt into rebasing, the remaining 50% in user wallets will receive a 2x yield boost multiplier. As of writing, the OS yield boost multiplier is at 5.3x, meaning OS held in wallets is earning well above the average staking rewards rate.

Origin Sonic (OS) vs. Wrapped Origin Sonic (wOS)

Since most DeFi applications cannot natively support rebasing tokens, wOS (Wrapped OS) was introduced to enable OS to be used across lending markets and other DeFi protocols. Here’s how they differ:

• OS (Origin Sonic): Rebases automatically in wallets, benefiting from the yield boost.
• wOS (Wrapped OS): Instead of rebasing, wOS accrues staking rewards into its token price, similar to how wOETH works.

Why do you get less wOS when swapping OS for wOS?

When you convert OS to wOS, you may notice that you receive fewer wOS tokens. This happens because wOS incorporates staking rewards into its price, meaning:

• Over time, the value of 1 wOS increases relative to OS.
• When swapping, the exchange rate reflects the accrued yield, not a 1:1 ratio.
• This ensures that wOS holders still benefit from staking rewards, even though the mechanism differs from OS’s rebasing model.

Getting Started with Origin Sonic in DeFi

If you’re looking to use OS in DeFi, there are various options to use both wOS and OS. Since wOS accrues rewards through price appreciation, it can be easily integrated into protocols like lending markets, while OS is more commonly used on AMMs.

Opportunities to Use OS In DeFi

• SwapX: OS holders can provide liquidity to OS pairs to earn trading fees, pool incentives, and an 8x Sonic Points multiplier.
• Metropolis: OS holders can provide liquidity to the OS/wS pool to earn trading fees, METRO rewards, and 16x Sonic Points.
• Yel Finance: Deposit to an OS vault on Yel Finance to farm liquidity pool APRs while earning a minimum of 8x Sonic Points.

Opportunities to Use wOS In DeFi

• Silo Finance: Borrow against your wOS and loop your tokens for leveraged yield and up to 80x Sonic Points with max looped positions.
• Shadow: Provide liquidity on the wOS/S pool to earn trading fees, Shadow GEMS, 8x Sonic Points, and liquidity pool incentives.
• Spectra: Use Spectra to leverage yield exposure or lock-in fix APYs to earn up to 90x Sonic Points.

Final Thoughts

Origin Sonic’s rebasing model offers a powerful advantage to holders by amplifying staking rewards. Whether you want to maximize passive yield by holding OS in your wallet or put your assets to work in DeFi, Origin Sonic gives you the flexibility to choose the best strategy for your needs. As the ecosystem grows, new integrations will continue to enhance the utility and earning potential of both OS and wOS.

Still have questions? Join us in Discord to get in touch with the team: discord.gg/ogn