Origin Dollar (OUSD) Coverage Now Available From Cover Protocol

In our continuing efforts to build confidence in the security of Origin Dollar (OUSD), we’re happy to announce that one of the leading providers of DeFi coverage, Cover Protocol, has added coverage support for OUSD.

Starting today, OUSD holders can buy smart contract coverage to cover any losses that might result from any bugs or vulnerabilities in the OUSD contracts, including economic exploits (such as flash loans attacks). In addition, anyone who wants to make a financial bet on the security of our contracts can earn a yield by providing coverage. In order to bootstrap the initial coverage, we will be offering 562,000 OGN in rewards for people who are willing to provide coverage (known as shield mining).

Coverage Seekers

Coverage Seekers can now buy cover for a fixed period of time by choosing Origin Dollar from the Cover Protocol Marketplace.

A few things to note here:

• Expiration Date: this initial cover is valid till April 30th, 2021
• The cover pays out in yDAI (Collateral)

As a Coverage Seeker, you only need the CLAIM token and can ignore NOCLAIM tokens. CLAIM token is currently trading at 0.02 DAI, so every 1 DAI of cover you need will cost 0.02. So if you wish to cover 10,000 OUSD using Cover Protocol it will cost you 200 DAI.

Cover Dashboard for buying CLAIM or NOCLAIM tokens for Origin Dollar

To purchase cover, click the “Buy” button in the top row to buyCLAIM tokens on the Cover Marketplace DApp. This will show you an embedded version of the Balancer Exchange when you can purchase your CLAIM tokens. To be precise, the token you are buying is COVER_ORIGIN_2021_04_30_yDAI_0_CLAIM as each coverage token is specific to the protocol and expiry time that you select.

Once you hold the Origin CLAIM token, you will be covered against any claimable incidents which result in a loss of funds between now and the expiry date.

Should a claimable incident occur, you will need to file a claim for Origin Dollar. If the claim is approved, you can redeem your CLAIM tokens for 1 yDAI each. It’s important to note that only incidents reported within 3 days are eligible.

Liquidity Providers

Anyone who wants to make a financial bet on the security of the OUSD contracts can earn fees by providing coverage as a backstop.

You can Mint CLAIM and NOCLAIM tokens for OUSD from the Cover app. You will need to select the Expiration Date you wish to use (currently 4/30/21) and input the amount of collateral you wish to provide. If you do not have yDAI, you can deposit DAI on Yearn to get back yDAI. While requiring an extra step, using yDAI for collateral allows coverage providers to still earn a yield while providing collateral to the protocol.

Next, you will need to Approve and Mint. The dashboard will then show you how many CLAIM & NOCLAIMtokens you have.

Cover Dashboard for Liquidity Providers

Here’s how the CLAIM & NOCLAIM tokens work:

• CLAIM tokens are worth 1 yDAI if an incident occurs
• NOCLAIM tokens are worth 1 yDAI if the expiry date is reached without an incident
• CLAIM+NOCLAIM can be redeemed together before incident or expiry is reached for 1 yDAI

As a Liquidity Provider you have the following options:

• If you believe OUSD won’t have any claimable incidents, keep your NOCLAIM tokens until after expiry, sell your CLAIM tokens into the balancer pool for DAI profits.
• If you believe OUSD will have a claimable incident, keep your CLAIM tokens until the incident, then sell your NOCLAIM tokens into the balancer pool for DAI profits.
• If you simply want to earn fees from Coverage Seekers, add your CLAIM + DAI to the balancer pool as a liquidity provider, you will earn trading fees (cover purchases) every time a Coverage Seeker buys CLAIM tokens.
• If you want to earn fees from Coverage Seekers and prediction market users, add both your CLAIM + DAI and NOCLAIM + DAI to the balancer pool as a liquidity provider, you will earn trading/speculation/coverage fees.

Shield Mining Rewards

To incentivize liquidity providers to provide coverage, Origin is allocating 562,000 OGN tokens for “shield mining”. These OGN rewards will be distributed evenly from now to expiration (4/30/21) to coverage providers. These incentives encourage users to provide coverage for OUSD, allowing OUSD holders to buy sufficient amounts of coverage with minimal slippage on Balancer.

We’re excited to be partnering with Cover Protocol and look forward to working with other insurance providers in the future. This partnership with Cover allows users to make predictions on whether or not OUSD will have a claimable event before the expiry date. This allows for more effective risk management by OUSD holders while creating new opportunities for bullish OUSD holders to profit.

Learn more about Origin:

• Get Origin Dollars (OUSD): ousd.com
• Buy Origin Tokens (OGN): Binance, Huobi, Upbit, Bittrex Global
• Stake and earn Origin Tokens (OGN): ousd.com/stake
• Track OGN token metrics: originprotocol.com/dashboard
• Learn more on our company website: originprotocol.com