Hi PT team and community, I am Peter from Origin Protocol. I am posting this as an idea to gather feedback before submitting as an official PTIP, and as a response to @Brendan’s post from 10/24,:
and @TheRealTuna’s comments on the post:
We would like to explore a partnership between Origin Protocol and PoolTogether, potentially utilizing the Origin Dollar (OUSD). Three ideas we had for this are listed towards the bottom of this post.
Origin has been around since 2017, and in 2020 launched the Origin Dollar, an ERC20 stablecoin that generates yield while sitting in your wallet. OUSD can be obtained through any DEX, a handful of CEX, and minted through the dapp on ousd .com.
About the Origin Dollar:
It is backed 1:1 by USDC, DAI, and USDT at all times; holders can go in and out of OUSD as they please. Yield is paid out daily (sometimes 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, comes from a combination of:
- Lending 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 (avoidable if using DEX or CEX), this fee goes back to OUSD holders
- OUSD sitting in non-upgradable contracts (about half the OUSD in existence) 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 strategy. 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 analytics.ousd.com.
Similarly to PoolTogether, there are no lock-ups, terms, or conditions with OUSD; it’s completely non-custodial. Any web3 wallet should be able to support OUSD and its rebasing function, including hardware wallets and multi-sigs. There’s no need to give up the keys to a 3rd party platform, such as Celsius, Blockfi, or FTX.
Security is also extremely important to the Origin team. 9+ audits have been done since 2020, all of which can be seen on https://docs.ousd.com/security-and-risks/audits, and we now have OpenZeppelin on retainer. On-chain insurance protocol InsurAce awarded OUSD a security rating of AAA, of which only 5 projects on the InsurAce platform have received.
Ideas For Partnership
There are three ideas we had for ways Origin and PT could partner, Origin engineers could potentially contribute to #1 and #2 if necessary:
Integrating OUSD functions into the current ETH Pool - Current USDC APY on Aave is 1.21%. Allocating a small amount of mainnet USDC from PT through OUSD would lead to greater returns, and thus, greater and/or additional prizes for PT users each day
Creating a second mainnet pool - If PT were to have a pool where all mainnet USDC was routed through OUSD, APYs would be 2-3x greater than the current mainnet pool
Extend the runway of PT and the DAO - We assume PT users and the core team want the protocol to survive the bear market. By converting a portion of the idle stablecoin in the PT treasury into OUSD, those stablecoins will immediately begin earning interest, extending the runway of PT a bit more each day, without having to manage a position.
We invite all PoolTogether users and the core PT team to provide their thoughts on this post, and look forward to beginning a partnership!