A governance proposal has recently passed to integrate MakerDAO’s DAI Savings Rate (DSR) with Origin Dollar.
Launched in 2018, the DSR supports DAI’s peg by allowing users to deposit DAI in order to earn interest. The low-risk yield strategy is incredibly robust, currently generating 8% APYs for participating users. As more users deposit to the DSR, yield is expected to compress as follows:
However, not all users can utilize the DSR at present. This is due to restrictions imposed on Maker’s DeFi lending protocol, Spark. Spark is unavailable in the United States as a result of ongoing regulatory uncertainty. Additionally, VPNs do not work with the protocol.
Implementing the DSR strategy allows OUSD’s community to benefit from the high yield on offer without bearing significant additional risk. MakerDAO CEO Rune Christensen has voiced confidence in the yield product, asserting that the DSR poses “no additional risk compared to holding DAI.”
Notably, OUSD holders can expect a yield multiplier on their earnings, boosting yield beyond what can be earned from using the underlying strategies directly. Since OUSD held in non-upgradable smart contracts does not rebase, the yield earned by that collateral is sent to normal holders’ wallets. For example, if 10 million OUSD rebases and 5 million OUSD does not, the yield multiplier would be ~1.5x.
The DSR complements OUSD’s existing blue-chip strategies to provide some of the best risk-adjusted stablecoin yields in DeFi. OUSD holders enjoy best-in-class security and seamless usability without needing to lock up any funds.
Get OUSD now: app.ousd.com
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