Origin Yield Boost, Explained

Origin introduces a unique yield mechanism that amplifies staking rewards for holders of its yield-bearing tokens through its rebasing model. This system creates a powerful incentive to hold Super OETH, OS, and Origin's other yield-bearing tokens while also offering a wrapped versions that are optimized for DeFi integrations.

If you're wondering why Origin's yield-bearing tokens offer higher yield than standard staking rewards, or how you can use our tokens in DeFi, this guide will break down the different opportunities for Origin token holders.

Where Does the Yield Come From?

Yield is derived from the staking rewards generated from staking on Ethereum (OETH, Super OETH) and Sonic (OS). Like traditional staking, Origin's tokens accrue rewards from network validation and other onchain activities. However, what makes Origin different is its yield boost mechanism:

• Origin tokens held in wallets automatically rebase, meaning holders receive additional tokens over time as staking rewards accrue.
• Origin tokens held in smart contracts do not rebase unless the contract opts in.
• This means that when a portion of the token supply is held in non-rebasing smart contracts, the rebases get concentrated among wallet holders, significantly boosting their effective APY.

Here is an example of how the yield boost works on Origin Sonic (OS), which operates similarly to Super OETH, OETH, and OUSD:

For example, if 50% of the token supply is held in smart contracts that don’t opt into rebasing, the remaining 50% in user wallets will receive a 2x yield boost multiplier.

Wrapped vs. Unwrapped Tokens

Since most DeFi applications cannot natively support rebasing tokens, wrapped tokens were introduced to enable usage across lending markets and other DeFi protocols. Here’s how they differ:

• Unwrapped tokens: Rebases automatically in wallets, benefiting from the yield boost.
• Wrapped tokens: Instead of rebasing, wrapped tokens accrue staking rewards to its token price, increasing in value as rewards are earned.

Why do you get less wrapped tokens when swapping from yield-bearing tokens?

When you convert yield-bearing tokens to wrapped tokens, you may notice that you receive fewer wrapped tokens. This happens because wrapped tokens incorporate staking rewards into its price, meaning:

• Over time, the value of 1 wrapped token increases relative its unwrapped counterpart.
• When swapping, the exchange rate reflects the accrued yield, not a 1:1 ratio. This ensures that wrapped token holders still benefit from staking rewards, even though the mechanism differs from the rebasing model.

Getting Started with Origin's Tokens in DeFi

If you’re looking to use Origin tokens in DeFi, there are various options to use both wrapped and unwrapped tokens. Since wrapped tokens accrue rewards through price appreciation, it can be easily integrated into protocols like lending markets, while unwrapped tokens are more commonly used on AMMs.

Opportunities to Use Origin Tokens In DeFi

• Super OETH holders can provide liquidity on Aerodrome (Base) and Rooster (Plume) to earn AMM incentives on their position. 
• Origin Dollar (OUSD) holders can provide liquidity on Curve pools to earn trading fees on their OUSD. 
• Origin Ether (OETH) holders can use their tokens to provide liquidity on Curve, restake their tokens on EigenLayer, or provide liquidity on Uniswap. 

Opportunities to Use Wrapped Tokens In DeFi

• Silo Finance: supports Origin's wrapped tokens for lending and leverage. wOETH, wsuperOETHb, and wOS are available on Silo's money markets. 
• Shadow: Provide liquidity on the wOS/S pool to earn trading fees, Shadow GEMS, 8x Sonic Points, and liquidity pool incentives.
• Spectra: Use Spectra to leverage yield exposure or lock-in fix APYs on Wrapped Super OETH and Wrapped Origin Sonic.

Final Thoughts

Origin's rebasing model offers a powerful advantage to holders by amplifying staking rewards. Whether you want to maximize passive yield by holding Super OETH, OS, OETH, or OUSD in your wallet or put your assets to work in DeFi, Origin gives you the flexibility to choose the best strategy for your needs. As the ecosystem grows, new integrations will continue to enhance the utility and earning potential for all of Origin's tokens. 

Still have questions? Join us in Discord to get in touch with the team: discord.gg/ogn