As Crypto Investors Turn to Stablecoins In Down Markets, OUSD V2 Boosts Holders’ Returns

As headwinds face against global markets, investors’ risk appetites have been heavily curbed as they move out from crypto positions and into stablecoins. However, the current inflation rate of over 7% will rapidly erode the spending power of cash, making it crucial for cash-heavy investors to earn yield. 

US Treasurys may be a great option with their high interest rates, but they are relatively illiquid compared to stablecoin yield strategies. For crypto investors who value flexibility and the ability to quickly deploy back into markets, using highly liquid stablecoin yield strategies is preferred, hence the value of OUSD V2’s newly boosted yields. 

What are Stablecoins?

Stablecoins are digital assets that intend to peg their value to other stable assets, such as fiat currencies like the US dollar or precious metals. The most popular type of stablecoins are pegged to the US Dollar, collateralized 1:1 with cash and short-term US Treasurys i.e. USDC, USDT, BUSD.  

By making digital currencies available on Web3, anyone with an internet connection can access the decentralized financial system powered by smart contract enabled blockchains. 

Stablecoin Lending In 2023: Earning Interest Without Market Speculation

Applications on Ethereum have accumulated billions of dollars worth of assets, all managed by code. Through lending and borrowing services automated in a peer-to-peer way, users can hold their assets directly in their wallets and eliminate the need to trust a 3rd party service.

This also means that borrowers of loans must post collateral into these applications, ensuring that lenders will be paid back even if the user defaults on their loan. This allows borrowers to leverage their crypto positions and lenders to earn low-risk yield on their assets.

Over the last 3 to 4 years, the robust liquidation system has allowed lending and borrowing in DeFi to flourish, operating successfully through the volatile and stressful nature of crypto markets. Compared to their centralized counterparts such as crypto exchanges or even banks during the great financial crisis, the blue-chip lending protocols have suffered zero insolvencies. 

Stablecoin Yield Automation via OUSD

OUSD is a stablecoin that earns yield from these aforementioned applications directly from your wallet. Once you hold Origin Dollar in your wallet, your balance will begin growing daily. OUSD is backed 1:1 by other stablecoins such as USDT, USDC, and DAI, ensuring its value stays pegged to $1. These yield strategies are carefully curated by the protocols’ engineers, conducting risk analysis, audits, and strategy rebalancing, ensuring the best risk-adjusted yields are earned for users. 

There are no staking or lock ups required with OUSD, as yield is directly sent to the crypto wallet holding it, similar to a savings account. OUSD can be redeemed for USDC, DAI or USDT at any time, allowing crypto investors to remain liquid and flexible. Unlike hedge funds which charge a 2% management fee and 20% performance fee, OUSD charges a 10% service fee that is already factored into advertised APYs. This fee accrues to veOGV holders, which governs the OUSD protocol. 

OUSD V2: Origin Dollar’s Largest Upgrade To-Date

OUSD engages in crypto lending in the form of stablecoin loans with blue-chip DeFi protocols such as AAVE and Compound, while conducting delta neutral market making strategies on Curve and Convex. However, the popularity of these blue-chip strategies have compressed their yields to sub 2% or even 1% at certain times. 

OUSD V2 has introduced the integration of new lending and proprietary market making strategies, allowing OUSD holders to earn a variable yield between 3% to 6% during the past 30 days. The Morpho strategy built on top of AAVE and Compound allows OUSD to arbitrage base yields via peer-to-peer lending. The Convex strategy allows the protocol to amplify OUSD’s liquidity and trading fees earned. 

By having yield strategies deployed on-chain, Origin Dollar’s reserves can be audited at all times, ensuring the protocol is never insolvent or involved in suspicious activity. OUSD is also one of only six projects that have received a AAA security rating from the insurance platform InsurAce. In light of crypto exchanges and platforms which have covered their insolvencies and fraudulent activity via the opaque and centralized natures, OUSD’s transparency and security is greatly appreciated by users. 

Just like users, digital organizations that want to maintain permissionless access to their treasuries or assets while earning yield will find OUSD to be a perfect fit for them. Since FTX and Alameda’s blow up have greatly affected a number of project’s treasuries and user balances, many will find OUSD’s principles of security, transparency, and decentralization to be a safe haven in midst of perilous conditions. 

If OUSD’s high yields, unparalleled convenience, principles and security-based approach appeals to you, OUSD can be acquired through decentralized exchanges such as Uniswap, centralized exchanges such as Kucoin or Gate, or directly through the OUSD app via OUSD.com.