Summary

Exponent is a treasury and risk service DAO. We help analyze DeFi risks and on-chain assets, so teams can make data-driven, risk-conscious decisions when managing their treasury.

We recently held a discussion with the Origin team and wanted to help support OUSD and OUSD governance.

Our aim is to publish a risk and return assessment report for potential OUSD strategies.

Potential strategies were collected in the following document between December 15, 2022 and December 20, 2022

Possible OUSD Strategies

This vote is for the OUSD community to select which strategy they would like to see the Exponent team create a report on.

Voting will end on 28 December, 2022 at 23:59 GMT

Introduction

The objective of this report is to give the community more data points to consider when voting on new strategies to be included for yield generation. Our aim is to provide information regarding the historical performance of a strategy, its associated risks, and our recommendations based on our analysis. In general, help the community be more informed when making governance votes.

The report aims to cover:

• Multitudes of risks vectors, including but not limited to smart contract, integrations liability, financial and market risks
• Evaluation of historical performance and risks for underlying assets and protocol
• How to identify the health of a strategy and metrics for active monitoring
• Redemption process and available liquidity analysis
• Assessment for position sizing and allocation recommendations
• Indicators for position reduction and exits

Possible Strategies

Aura bb-a-USD

• Summary
  • Deposit DAI, USDC, USDT or the aToken equivalents, stake the BPT (LP token) on Aura (Convex equivalent for Balancer)
  • Earn trading fees, Aave interest, BAL, and AURA incentives
• Protocols involved
  • Balancer, Aave, Aura
• Anticipated APY
  • 1-5%

Uniswap USDC / USDT 0.01%

• Summary
  • Deposit USDC and USDT
  • Earn trading fees
• Protocols involved
  • Uniswap
• Anticipated APY
  • 1-5%

Euler

• Summary
  • Deposit DAI, USDC or USDT, then stake the eToken
  • Earn interest EUL incentives
• Protocols involved
  • Euler
• Anticipated APY
  • 1-5%

Convex FRAX+USDC

• Summary
  • Deposit FRAX or USDC, stake on Convex and on Frax Booster
  • Earn trading fees, CRV incentives, CVX incentives, and FXS incentives
• Protocols involved
  • Curve, Convex, Frax
• Anticipated APY
  • 4-7%

Yearn

• Summary
  • Deposit DAI, USDC, or USDT
  • Earn from underlying vault strategies
• Protocols involved
  • Yearn, Compound, Arrakis, Notional, Angle, Stargate, Idle, Aave, Clearpool
• Anticipated APY
  • 1-4%

Idle Best Yield

• Summary
  • Deposit DAI, USDC, or USDT
  • Earn interest, COMP incentives, and IDLE incentives
• Protocols involved
  • Idle, Compound, Aave, Clearpool
• Anticipated APY
  • 1-4%

Sturdy

• Summary
  • Deposit DAI, USDC, or USDT
  • Earn interest and part of a future, locked airdrop
• Protocols involved
  • Sturdy, Yearn
• Anticipated APY
  • 4-?%

Convex FRAX+3pool

• Summary
  • Deposit USDC/USDT/DAI, stake on Convex
  • Earn trading fees, CRV incentives, CVX incentives
• Protocols involved
  • Curve, Convex
• Anticipated APY
  • 2-5%

Convex cDAI + cUSDC

• Summary
  • Deposit compound tokens
  • Earn base token interest, trading fees, CRV incentives, CVX incentives
  • Does not earn COMP
  • Only “safe” coins
• Protocols involved
  • Curve, Convex, Compound
• Anticipated APY
  • 2-3%

Convex aDAI + aUSDC + aUSDT

• Summary
  • Deposit aave a tokens
  • Earn base token interest, trading fees, CRV incentives, CVX incentives
• Protocols involved
  • Curve, Convex, AAVE
• Anticipated APY
  • 2-3%

Notional + FIAT DAO

• Summary
  • Lend on Notional at >4% (current yield), deposit the receipt of the lend on Fiat Dao in order to get a complete redemption in FIAT, the fiat dao stable coin. This achieves decent fixed (and therefore minimum guaranteed) return and immediate liquidity.
• Protocols involved
  • Notional, Fiat
• Anticipated APY
  • 4-?%

About Exponent

Exponent is on a mission to unlock treasury deployment at scale for decentralized communities, helping teams increase resiliency and grow by delivering embedded treasury governance services that are closely coupled with risk monitoring, analytics, and capital allocation products.

The Exponent platform offers a suite of products and services consisting of:

• Embedded governance services
• A bespoke non-custodial vault.
• A suite of risk monitoring and alerting infrastructure.
• Automated capital allocation and yield optimization strategies.

Through Exponent’s offerings, Web3 builders can focus on building and accelerating their products, rather than being distracted with treasury and DeFi operations.

Learn More About Exponent Here:

Website: https://exponent.cx

Docs: https://docs.exponent.cx

Twitter: https://twitter.com/exponent_cx

Discord: https://discord.gg/43jv3UKUeK