External Proposal: Origin Protocol’s OUSD for Treasury Yield

Submitter: Dr Wagmi | Forge Team | Vault#6629 Author: SlagathorTheMammothKing#7632 GotchiID: 11146 Quorum requirement: 20% (9M) Vote duration: 7 days Discourse Thread: https://dao.aavegotchi.com/t/external-proposal-origin-protocols-ousd-for-treasury-yield/4728 Voting Options: Yes; No; Abstain

This is a proposal from Origin Protocol to convert $2m DAI of the 25% allocated to the DAO treasury from closing the curve into OUSD to generate passive yield for the Aavegotchi treasury.

OUSD generates passive yield while sitting in a wallet, and is able to generate higher yields than using any single protocol strategy manually. Backed 1:1 by USDC, DAI, and USDT at all times; yield is paid out daily and automatically (sometimes multiple times per day) though a positive rebase in the form of additional OUSD, proportional to the amount of OUSD held. OUSD yield is currently ~5% APY, but it has ranged from as low as 4.08% APY and as high as 198.24% APY over the past month. OUSD yield comes from a combination of:

• Lending collateral to Aave, Compound, Morpho, Curve, and Convex
• Reward tokens (AAVE, COMP, 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
• OUSD sitting in non-upgradable contracts (more than half the OUSD in existence) does not rebase, instead the interest generated from those tokens is provided to those that can rebase

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 ever again give up the keys to a 3rd party platform, such as Celsius, Blockfi, or FTX, to earn yield.

Background on Origin Protocol

Origin was founded by Web3 veterans Josh Fraser and Matthew Liu in 2017 and is one of the most venerable projects in the space. Josh and Matthew are joined by the fully doxxed Origin team and community, which includes hundreds of thousands of members and open-source contributors. Origin has raised $38.1M from top investors including Pantera, Spartan Group, Foundation Capital, BlockTower Capital, Steve Chen, Garry Tan, and Alexis Ohanian, and currently maintains a multimillion dollar treasury. As a technology partner, Origin Story, released in 2019, has helped launch some of the largest NFT projects to-date:

• Paris Hilton Launches ‘Past Lives, New Beginnings’
• 3LAU Launches Record-Setting $11.7M Auction
• Charlie Bit My Finger NFT Sale Makes Headlines and Sets New Record
• Macallan Cask NFT Sells For $2.3 Million
• First Real Estate Sale via NFT Marketplace

For the full proposal, please view the discussion on the forum post, as well as the proposal comments.