Accruing Value to OGN with OUSD: OGN Buybacks Powered by OUSD Yield
This is the second post in the series, Accruing Value to OGN with OUSD. Throughout this series, we’ll unveil our plans on creating new value and token utility for Origin Token (OGN) holders. For more background, you can read our first post in this series.
Since its inception, the Origin Dollar (OUSD) has consistently generated highly-compelling APYs for our holders. OUSD has consistently returned double-digit yield at 20–40% and is currently producing 32% APY.
Our intention has always been to drive value accrual to the Origin Token (OGN) through OUSD as our flagship DeFi product. Now that OUSD is consistently generating industry-leading APYs for stablecoins, we are excited to announce the first step in the journey to deliver value to our long-time OGN token holders.
As of today, 10% of OUSD’s yields will be charged as a service fee that will be used in an OGN buyback program. The buyback smart contract will programmatically market buy OGN on Uniswap on a regular basis. The resulting OGN will be held by the smart contract until these funds can be directed by decentralized governance. You can see the history of buyback transactions on our OUSD analytics dashboard.
This is just the first phase of driving value to OGN via OUSD. In the future, we anticipate potentially more sophisticated means of driving direct financial value to OGN. For example, we may switch to variable service fees based on OUSD yield benchmarks (e.g. higher service fees when OUSD is returning 50%+ yields vs. 20%+ yields).
Today’s announcement is significant for several reasons. Most importantly, it creates a direct financial connection between the two tokens that are critical towards the success of the Origin Platform.
It also creates a positive flywheel effect. Now, OGN holders are heavily incentivized to act as OUSD evangelists and promote the product. As OUSD increases in circulating supply and earns greater aggregate yields, OGN token holders stand to increase their financial upside. We encourage our tens of thousands of OGN token holders and hundreds of thousands of community members to also become OUSD holders. In addition, by promoting OUSD to the broader cryptocurrency community, you will also increase OUSD circulating supply and generated yields, allowing more value to accrue to OGN.
You can mint OUSD or purchase from our Uniswap pool in minutes.
On the flip side, we encourage existing OUSD users to also become OGN holders. As OGN is the governance token for OUSD, we anticipate the community to take an increasingly active role in determining the value capture and distribution to OGN holders over time.
With today’s initial rollout of service fees to OGN token holders, we have transitioned to Phase 2 of our progressive path to decentralized governance.
In anticipation of our initial community-governed protocol updates, you can buy OGN to increase your voting power and ability to participate in future governance proposals and decisions. OGN is currently available on many of the top global exchanges, including Binance, Huobi, Upbit, Bittrex Global, and many others.
While we are very excited about today’s announcement, we are even more excited about what’s to come in the next few months. The entire Origin team has extremely ambitious plans for rapidly increasing adoption of OUSD by targeting new DeFi enthusiasts and eventually mainstream audiences. As we rapidly iterate on our product offerings and upgrade the protocol, we anticipate powerful value accrual mechanisms to OGN in the future.
Learn more about Origin:
- Get Origin Dollars (OUSD): ousd.com/mint
- Stake your OGN to earn: ousd.com/stake
- Launch your decentralized store: originprotocol.com/dshop
- Buy Origin Tokens (OGN): Binance, Huobi, Upbit, Bittrex Global
- Track OGN token metrics: originprotocol.com/dashboard
- Learn more on our company website: originprotocol.com
