OUSD x Yearn: The OUSD Morpho Vault

Following the passage of the proposal to simplify Origin Dollar, OUSD has transitioned to a simpler and more scalable design: 100% backed by USDC. The move away from a stablecoin basket improves redemption mechanics, reduces protocol complexity, and enables more deliberate allocation of collateral to onchain yield.

Origin Dollar’s new yield strategy is now live. Yield is now generated through an exclusive Morpho Vault built in collaboration with Yearn, designed specifically for OUSD.

OUSD Upgrade

The OUSD upgrade moves OUSD to a fully USDC-backed model. This change eliminates the need to manage a basket of stablecoins, streamlines accounting, and creates a more predictable redemption experience for users.

It also unlocks the ability to deploy collateral into purpose-built USDC strategies. The first of these is a Morpho Vault managed in collaboration with Yearn. This vault was designed exclusively for OUSD:

Only USDC is accepted to the vault
Only OUSD is whitelisted as a depositor
Yield is sourced from whitelisted, low-risk Morpho lending markets

The design ensures that OUSD holders benefit from curated yield opportunities not available to the public, while maintaining tight control over risk and liquidity.

Vault Exposure

The vault allocates USDC across proven Morpho markets, optimizing for stable, risk-adjusted yield. At launch, the largest allocation is to the cbBTC/USDC market, with additional exposure to WBTC, stablecoin, and LST lending markets. Every market is independently reviewed before being added to the vault, with strict controls in place to manage exposure.

The vault currently holds over $4M in USDC, and the majority of OUSD’s collateral now earns through this Morpho Vault on Ethereum mainnet.

Risk Framework

To guide capital deployment, the OUSD Morpho Vault uses a three-tier risk model:

Risk Level 1, Lowest Risk / High Liquidity: Secure, battle-tested platforms with deep liquidity and long history of stability. These markets form the foundation of the vault with a minimum 60% allocation. Withdrawals are fast, and yield is consistent but conservative.

Risk Level 2, Low Risk / Enhanced Yields: Includes well-established protocols or newer versions of Risk-1 platforms. Higher yields come with a small amount of additional risk. Allocations target a 30% allocation with a maximum allocation of 40%.

Risk Level 3, Moderate Risk / Exploratory: Emerging protocols and newer assets with higher yield potential but limited stress-testing. Allocations are capped at 10% and may be excluded entirely based on current market conditions.

Laying the Foundation to Scale

The OUSD Morpho Vault marks the completion of Phase 1 of the OUSD redesign. With a more robust structure now in place, Phase 2 will focus on sourcing yield across multiple networks.

Phase 2 will include:

Unified accounting for multichain vault deployments
Secure bridging infrastructure
Cross-chain monitoring and real-time vault rebalancing
A multichain risk model to evaluate and cap exposure per deployment

Many of the highest-yielding, well-incentivized lending markets exist outside Ethereum. The ability to route USDC to Morpho deployments on chains like Base and Hyperliquid under the same risk controls used on Ethereum mainnet presents an opportunity to scale yield while preserving the core design principles of OUSD.

Hold OUSD, Earn Passively

The OUSD Morpho Vault is the first step in a broader shift toward controlled, cross-chain yield curation. With a streamlined USDC-only structure, exclusive vault access, and a roadmap toward multichain yield, OUSD is evolving into a more resilient and flexible stablecoin.

Start earning with OUSD: https://app.originprotocol.com/#/ousd/