Targeting users such as those affected by issues revolving around FTX, BlockFi, and Voyager, as well as hacks, token de-pegging, and insider trading, Origin Protocol has announced the launch of OUSD V2, a risk-free treasury with zero counterparty risk.
Built on a new investment strategy and using protocol enhancements, OUSD V2 allows users to take full control of their token-generated yields directly from their crypto wallets, the company states. Users will see their token balances growing passively right in their wallet, making OUSD V2 a decentralized, transparent, fully collateralized, and high-liquidity alternative to riskier centralized finance (CeFi) alternatives.
Origin Protocol’s new yield generation strategies were audited by OpenZeppelin, a blue-chip auditing firm that is used by Coinbase, Aave, and the Ethereum Foundation. OpenZeppelin found no critical or high-security issues with the new release. OUSD is also only one of six projects that received a AAA security rating from InsurAce, a premier decentralized insurance platform.
Furthermore, using new Convex and Morpho strategies for OUSD V2, Origin Dollar now comes with the highest stablecoin yields available on the market (on a risk-adjusted basis). These strategies provide liquidity to 3Pool – which contains USDC, USDT, and DAI as collateral for OUSD – on the decentralized stablecoin exchange Curve.
Origin Protocol’s co-founder Josh Fraser said that OUSD was built with a security-first philosophy for years. With the protocol improvements that were made over the last month, OUSD has earned holders over 6% APY – over 2X the rate of the previous month with no additional risk, thanks to OUSD V2. “OUSD empowers individuals to own their crypto, which has been brought into the limelight in 2022. And for new users, OUSD is the perfect way to dip their feet into DeFi. There is no need for active management, and yield is passively earned and deposited to the user’s Web3 wallet every day,” said Fraser.
Head of Business Development for OUSD Andra Nicolau said that OUSD is also a great tool for DAOs since most DAOs place a high priority on staying decentralized and directly owning their assets. Since it is difficult to manage off-chain funds or other parties to manage a DAO’s treasury, DAO treasuries can use OUSD to directly own their assets just like any other token, with interest from OUSD’s collateral being deposited into the DAO treasury every day.
Thanks to smart contracts that manage funds using code instead of relying on human decision-making, crypto alternatives such as OUSD V2 are regaining investors’ trust since these alternatives are fair, transparent, automated, audited, fully collateralized, and permissionless.
As a constantly evolving protocol, Origin Protocol strives to build new trading and investment strategies on top of decentralized exchanges and AMMs such as Curve, Convex, Aave, and Compound to generate the best possible yields for holders. Origin Protocol’s strategies and allocations can be seen on OUSD’s governance portal and are subject to the same strict security measures used across the platform.
The fully-collateralized 3Pool strategy used by Origin can help make counterparty risk and misaligned incentives a thing of the past. Those traders who are looking for a high APY that is generated using verifiable collateral deployed on a premier and battle-tested DeFi platform with yield delivered straight to wallet could consider looking into Origin Protocol’s OUSD V2 as a potential solution.
