Peer-to-peer commerce company Origin is announcing Origin Dollars, or OUSD, a stablecoin whose reserves leverage decentralized finance (DeFi) so that balances grow wherever it resides, no staking or account required.
“One thing we’ve all seen in DeFi is a much smaller audience gets it. The barrier to entry is much higher,” Matthew Liu, Origin’s cofounder, told CoinDesk in a phone call. “We want to make DeFi much more accessible.”
OUSD will be backed one-for-one by the three big stablecoins on Ethereum: Tether’s USDT, Circle and Coinbase’s USDC and MakerDAO’s DAI. Users can mint OUSD by depositing any of those three into Origin’s new app, or they can just buy it on Uniswap. Either way, the OUSD will just start growing in their wallet, no further action needed.
“Multiple times a day you should be able to see your balance increase,” Origin co-founder Josh Fraser told CoinDesk.
On the backend, Origin will take deposits and start yield farming them in different protocols, starting with the DeFi money market Compound. Returns will be driven back into OUSD, minting more OUSD that will be distributed proportionally to all the wallets that have it. The company will be able to further boost yield by taking any tokens earned through liquidity mining, converting it to one of the three stablecoins and supplying that to the pool as well.
As of this writing, those three coins have an annual yield on Compound of between 0.5% and just under 3%, though that does not factor in liquidity mining, which can be tough to calculate.
To start, the team expects returns to be in the single digits as its Compound deposits earn both yield and fresh COMP; other pools will be added as OUSD grows.
Origin’s three initial strategies are yields on deposits for lending, fees in automated market makers and growth-token mining.
To get OUSD started, “as a company, we’ll put in probably a few hundred…