How Does OUSD Work?
OUSD is a yield-generating stablecoin collateralized by Circle's USDC, with security as its top priority. Users exchange USDC for OUSD, which the protocol then deploys into DeFi yield strategies on Morpho and Curve.
Our users have enjoyed earning interest with the security of OUSD in an environment where multiple platforms and exchanges have imploded, without having to deal with the hassle and expenses of asset management.
Morpho and Curve Stablecoin Strategies
OUSD generates yield solely through stablecoin lending and liquidity provision, eliminating any risk of speculative positions in volatile assets. There is no market volatility risk, which is commonly the largest risk when investing in cryptocurrencies. OUSD earns yield through stablecoin lending on Morpho and by providing liquidity on Curve. While APYs vary with market conditions, OUSD holders typically earn between 3.5% and 7% APY passively.
Notably, the yield with OUSD is higher than any singular protocol used by Origin Dollar. Not only is OUSD passive, but it allows for higher yields than the aforementioned blue-chip protocols.
Morpho USDC Yield
Origin Dollar's yield comes primarily from its collaboration with Yearn on an exclusive USDC vault designed specifically for Origin. This vault isn’t accessible to the broader market; it’s a dedicated strategy pipeline built for OUSD, giving Origin direct access to Yearn’s most reliable, low-risk routes for generating onchain yield. USDC collateral is deposited into this vault, where it’s actively deployed into high-quality opportunities curated by both teams.
Yearn and Origin jointly manage how this capital flows through Morpho’s lending markets. Morpho has become the core engine for OUSD’s earnings, offering efficient, transparent lending exposure with strong borrower demand and robust collateralization. By routing OUSD’s USDC through Morpho, the vault captures stable lending returns with minimal operational overhead. The result is a smoother, more predictable earning profile for OUSD holders, powered by a purpose-built Yearn vault and a conservative strategy mix that prioritizes safety while still delivering competitive yield.
Curve (CRV) Liquidity Provision
A portion of OUSD’s USDC backing is allocated to an algorithmic market operations (AMO) strategy on Curve. In this setup, OUSD is paired with USDC in stablecoin pools to deepen onchain liquidity and improve convertibility for users.
By supplying liquidity, OUSD earns trading fees from swaps that route through the pool, creating a steady baseline of yield tied directly to market activity. This approach also helps keep OUSD liquid and efficient to trade across major DeFi venues.
In addition to trading fees, the position accrues CRV rewards, which are harvested and to further enhance returns. The sizing and rebalancing of this Curve position allow the system to adapt to changing market conditions while keeping risk controlled. This liquidity provision strategy complements OUSD’s lending-based yield on Morpho, adding a diversified source of returns while strengthening OUSD’s overall market presence.
Risks Involved With Stablecoin Yield
Smart Contract Risks
Smart contract risk applies to OUSD, AAVE, Compound, Curve, Convex, and any other decentralized finance (DeFi) applications. That said, the longer a smart contract has been deployed, the more time a potential hacker has had to exploit it.
Morpho and Curve’s models have been stress-tested over 2-7 years, through volatile events and audits, further analyzed by the Origin engineering team. Based on this, we determine risks to be low and utilize these protocols for our yield strategy.
Stablecoin Risks
OUSD is backed by USDC, which exposes the token to counterparty risks. These stablecoins are pegged to the US dollar based on the issuer’s holdings such as cash and commercial paper.
Issuers are subject to U.S regulatory risks and have the ability to freeze the stablecoins in users’ wallets. Based on USDC's track record over multiple years, we determine stablecoin risk to be extremely low. Overall, by avoiding the usage of speculative assets, our strategies carry one of the least risks in all of DeFi.
Origin Dollar: The Passive, Yield-Bearing Stablecoin
The interest earned on OUSD gets directly sent to users’ wallets, without the need for staking or lockups. Boasting unparalleled convenience and emphasis on risk management and security, we believe OUSD is the best place to earn interest on your dollars.
OUSD can be obtained on exchanges such as Kucoin, Gate, Uniswap and Matcha, or directly through the OUSD application with USDC.
