Summary / Previous Discussions
As stated in RFC-8, the objective of this proposal is to generate yield for PopcornDAO by using the Origin Dollar (OUSD). PopcornDAO will convert the idle USDC, currently sitting in the Gnosis multisig, into OUSD using the OUSD dApp from within the Gnosis platform.
Origin launched in 2017, and in 2020 released OUSD, an ERC20 stablecoin that generates yield while sitting in your wallet. OUSD is backed 1:1 by USDC, DAI, and USDT at all times. Yield is paid out automatically each day, often multiple times per day, though a positive rebase in the form of additional OUSD, proportional to the amount of OUSD held.
OUSD yield, currently ~7% APY, is generated from a combination of:
- Deploying collateral to Aave, Compound, Morpho, Curve, and Convex
- Incentive tokens (AAVE, COMP, MORPHO, CRV, and CVX) are automatically claimed and converted to stablecoin
- A 25bip exit fee is charged to those who choose to exit OUSD via the dapp (completely avoidable if using DEX or CEX), this fee goes back to OUSD holders as additional yield
- OUSD sitting in non-upgradable contracts (about half the OUSD in existence, ~$31m) does not rebase, instead the interest generated from those tokens is given to those that can rebase
These 4 yield generating functions enable OUSD to generate higher yields than lending directly to any one protocol. OUSD has been battle-tested with a TVL of $300m in December of 2021, and yields did not diminish with scale. Each week a governance vote is held to determine the best allocation of OUSD collateral between the whitelisted strategies, voted on by OGV holders. OGV is the governance token for OUSD, and any token holder can participate in these votes. Analytics for the current OUSD allocation and backing assets are always available on-chain via the OUSD Analytics page.
There are no lock-ups, terms, or conditions with OUSD; it is completely non-custodial. PopcornDAO can unwind the OUSD investment at any point, at the speed of the Ethereum blockchain. There’s no need to ever again give up the keys to a 3rd party platform, such as Celsius, Blockfi, or FTX, to earn yield.
There are three risks when using OUSD, and Origin is making sure to reduce each risk as much as possible:
Smart contract risk of the yield strategies - Origin is only using platforms for yield generation that have a proven track record, have been audited, have billions in TVL, maintain a bug bounty program, and provide over-collateralized loans. Over-collateralization in itself, combined with liquidations, provides a reasonable level of security for lenders.
Stablecoin depeg risk - Origin has chosen 3 of the largest stablecoins to ever exist to back OUSD, and they have stood the test of time and maintained their peg quite well through multiple bull and bear cycles. They have also demonstrated significant growth in circulating supply, so the Origin team is confident that the 3 stables will maintain their peg and that OUSD will remain stable.
Smart contract risk of OUSD - Origin is taking every step possible to be proactive and lessen the chance of losing funds. Security reviews are prioritized over new feature development, with regular audits being done, and multiple engineers are required to review each code change with a detailed checklist. There are timelocks before protocol upgrades are launched, and deep dives into the exploits of other protocols are constantly being done to make sure the same exploits don’t exist on Origin contracts. Security is extremely important to the Origin team. 7+ audits have been done since 2020, all of which can be seen on Audits - OUSD, and OpenZeppelin is now on retainer. On-chain insurance protocol InsurAce awarded OUSD the highest possible security rating of AAA, of which only 5 projects on the InsurAce platform have received.
Very little technical work is necessary to execute this proposal, practically none! The OUSD dApp is already available within the Gnosis app catalog. PopcornDAO will convert the USDC to OUSD using the OUSD dApp within Gnosis, and then will “Opt in” to yield generation by clicking the Opt in button within Gnosis or by calling the
A screenshot of the Opt in button on Gnosis can be seen here:
There are no KYC, KYB, or partnership requirements to earn yield with OUSD. All that is required is to hold the tokens in a rebase-capable web3 wallet.
- From within Gnosis, convert the USDC into OUSD using the Origin Dollar dApp
- “Opt in” to yield generation
Please indicate if you approve or disapprove this proposal below. The Origin team is available 7 days a week via the Origin Discord server to answer any questions related to OUSD or this PIP.