DeFi-Inspired Yield-Earning Stablecoin OUSD Launched
The Origin Protocol–a San Francisco-based company aiming to revolutionize eCommerce, is launching OUSD. It is an ERC-20 stablecoin whose reserves readjust depending on demand from the booming decentralized finance (DeFi) sub-sector as per a Medium post on Sep 23. With no staking, lock-ups, or account registration, the coin currently earns a 2.89 percent APR and will make DeFi more accessible.
The Rise of DeFi
At the time of writing, over $8.9 billion worth of tokens is locked and under management by different DeFi protocol. A few days after launching, Uniswap—the world’s largest decentralized exchange, remains the most dominant with over $1.9 billion of value locked according to Etherscan.
OUSD will ease entry into DeFi while concurrently lowering transaction costs now that Gas fees remain high in Ethereum.
An extract from their statement read:
“OUSD combines the automated farming of Yearn, the elastic supply of Ampleforth, and the ease-of-use of Tether. Think of it as interest accruing in your bank account. The value of a dollar doesn’t change. You just get more of them over time as you earn interest.”
Despite recent price blips that significantly affected the prices of technically “worthless” governance tokens, the Ethereum community remains confident of ETH’s prospect.
By extension, this would bolster the wider DeFi scene which is still experimental but promising.
OUSD for Yield Farming
The stablecoin, OUSD, will be pegged to USDT, DAI, and USDC, three of the most liquid stablecoins in Ethereum. To mint new OUSD, a user has to deposit any of the three backing tokens to Origin’s App. Alternatively, they can buy directly from Uniswap.
Once the exchange is complete, the user will immediately start receiving returns without having to shuffle to other yield generating protocols or automated market makers.
The Origin Protocol team is capitalizing on the current DeFi boom to reward holders of its stablecoin by sharing proceeds of their yield farming activities.
By plowing back rewards from lending, liquidity provision, and funding of growth tokens, OUSD holders stand to gain more. Additionally, Origin Protocol will improve their pool’s liquidity.
To get started, the Origin Protocol will mine the first batch from Compound with the company planning to sink in a “few hundred thousand” to jump-start their farming activities.
Earlier, BTCManager reported of Solve.Care’s plans of launching a governance token in their bid of merging DeFi with healthcare.