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Origin DeFi’s OUSD and OETH have consistently returned market-beating yields. Beyond optimizing collateral between blue-chip DeFi protocols, OTokens enable users to earn above market rates on Aave, Curve, Compound, and liquid staking tokens.
Simply put, the reason for this is that not all OTokens in circulation receive yield. Non-yield bearing OTokens earn yield for yield-generating OTokens, essentially concentrating yield for normal holders.
Let’s dive into a key element of how OETH and OUSD generate elevated, sustainable yield for its users: Origin’s rebasing mechanism.
In 2020, Ethereum’s stack of DeFi applications proliferated, as on-chain lending and trading became popular. Users could earn yield on their stablecoins via lending and decentralized exchange applications, with APYs that beat traditional banking yields by a significant margin. Thus came an influx of USD into Ethereum stablecoins and DeFi applications.
However, the demand to use Ethereum also meant an increase in transaction fees. As such, many small users were priced out earning these yields efficiently. With the variable nature of DeFi yields, only larger players who could afford to actively rebalance their portfolio earned the best yields.
The ethos of Web3 is to create an open financial system that anyone could use and access. If only whales could take advantage of the ecosystem, its mission would have failed. With the vision of creating a tool that makes market-beating stablecoin yields accessible to retail users, OUSD was created.
The two most prohibitive factors for retail users to earn optimized stablecoin yields are transaction fees and the due diligence required for yield strategies. Actions like swapping, staking, unstaking, and rebalancing all require ETH gas fees, and could cost users hundreds of dollars per year based on activity.
To mitigate transaction fees, Origin added a rebasing mechanism that credits OUSD holders with their yield, replacing the need for staking and unstaking. Users simply have to mint or swap stablecoins for OUSD via DEXs, or purchase it on centralized exchanges like Kucoin or Gate.
Stablecoins received by OUSD are then deployed into DeFi yield strategies, which are battle-tested and audited internally and externally. By pooling everyone’s deposits together, OUSD achieves the economy of scale to optimize active rebalancing. Holders could be assured that they were receiving the best risk-adjusted yields at any given time.
Since OUSD rebasing is used to credit holders with passive yield, OUSD being used for other purposes is not credited with rebasing yield - OUSD held in smart contracts does not receive rebasing yield by default. This means that OUSD sitting in decentralized exchanges to earn trading fees and rewards do not earn rebasing yield; this yield is distributed to regular holders instead.
With the amount of OUSD sitting in smart contracts, OUSD’s yield multiplier for regular holders currently sits at 1.66x! This means that for every 1 OUSD a user holds, there is more than $1 of stablecoins working for them in DeFi.
The recent boom in demand for ETH liquid staking tokens has also given rise to demand for an ETH yield aggregator that leverages liquid staking. Preparing for Ethereum’s Shanghai upgrade, OETH was created to give users the same passive income tool as OUSD, but for ETH. By building integrations with DeFi strategies and multiple liquid staking providers, OETH offers the best risk-adjusted yields in DeFi.
To recreate the OUSD multiplier effect for OETH holders, Origin had to create opportunities for active farmers to use OETH in smart contracts. With the option to provide liquidity on Curve or through yield boosters like Yearn, approximately 10% of OETH’s circulating supply sits in smart contracts, providing a 1.1x boost to regular holders.
By keeping both passive holders and active yield farmers in mind, Origin has created a system where holders benefit from the optimizations yield farmers employ. Holders get to stack USD and ETH passively, with elevated yields, no staking required, automatic compounding and rebalancing, and constant updates in yield strategies with external audits. Users simply have to hold their OTokens in their wallet.
Ready to generate passive USD rewards? Check out OUSD. Want to start stacking ETH faster? Get OETH today.
