We’re excited to reveal a new feature that delivers greater utility for OUSD, OETH, and Super OETH: Yield Forwarding.
Yield Forwarding rethinks how yield-bearing tokens can be utilized in smart contracts, such as those powering AMMs. By implementing Yield Forwarding, protocols can now direct yield from Origin’s rebasing tokens to continually fund their growth initiatives.
Let’s dive into Yield Forwarding, its use cases, and our broader vision for how yield-bearing tokens can be leveraged across DeFi.
With Yield Forwarding, protocols can route the yield from Origin’s rebasing tokens to approved smart contracts.
By default, Origin’s yield-bearing tokens held in smart contracts do not rebase. With Yield Forwarding, protocols can submit proposals to the OGN DAO to direct yield from OETH, Super OETH, and OUSD held in AMMs to other smart contracts. In doing so, yield earned on these tokens can be used for various purposes, offering a new source of revenue for protocols that implement Yield Forwarding.
While we’ve only begun to scratch the surface of what Yield Forwarding can be used for, one of the most exciting use cases is funding incentives on AMMs. By using Yield Forwarding to fund incentives on liquidity pools, protocols will be able to increase pool APYs, attracting deeper liquidity for their token pair.
Typically, protocols pair their token with WETH or stablecoins in liquidity pools, but these funds largely sit idle. Using Yield Forwarding, protocols can increase the capital efficiency of their liquidity pools by pairing with OETH, Super OETH, or OUSD. Yield generated by Origin’s rebasing tokens in these pools can be used to automatically incentivize liquidity pools for heightened LP rewards.
Note that Yield Forwarding has many other potential applications including funding a protocol’s treasury, funding staking rewards, DCAing into tokens, and beyond. Protocols can earn substantial yield on their ETH and stablecoin holdings by implementing Yield Forwarding, allowing them to extend their runway and fund future initiatives.
While protocol revenue has grown significantly since the launch of Super OETH, we believe Yield Forwarding can be the next catalyst for growth for the OGN DAO.
Various new AMMs will integrate Yield Forwarding, attracting new TVL to Origin. As TVL scales, so too will the fees generated for the protocol, further reinforcing OGN's role as the value-accrual token of Origin’s product suite.
Several projects we are collaborating with manage 8+ figures of TVL, and initial conversations around Yield Forwarding have been promising.
In the coming weeks, we’ll be announcing our Yield Forwarding launch partners on X. These integrations will introduce new OETH, Super OETH, and OUSD pools, further enhancing liquidity and driving TVL growth for Origin’s tokens.
As we continue to scale, our focus remains on creating innovative solutions that benefit both Origin token holders and the broader ecosystem. Yield Forwarding is just the beginning, and we’re excited to see how this new feature will shape how yield-bearing assets will be used in DeFi.