Today, we look deeper at the Origin Dollar token (OUSD) liquidity situation on Uniswap v3. Origin Dollar is a prominent player within the realm of decentralized exchanges (DEXes), consistently ranking among the top 50 most liquid assets according to our research. Its Total Value Locked (TVL) currently stands at 0.7 million USD.
Origin DeFi offers a way to earn risk-adjusted yield on blue-chip assets. OUSD and OETH are governed by Origin DeFi Governance (OGV), and the OGV DAO accumulates fees from OToken yield.
OUSD and OETH feature “up-only” rebasing, meaning token balances increase daily as the underlying collateral earns yield. OUSD and OETH holders can watch their balance grow without paying gas fees to claim rewards, with 100% of their position always liquid.
Our analysis of OUSD liquidity on Uniswap v3 aims to address key questions:
Can you execute significant OUSD trades without causing substantial price changes?
What’s transpiring within OUSD’s liquidity pools on Uniswap v3? How active are investors trading this token?
The main trading point for the OUSD on Uniswap revolves around the OUSD/USDT pool with a 0,05% fee level. This pool captures the lion’s share of trading activity for the OUSD. We assessed the liquidity of the OUSD using various key indicators. Let’s take a look at the most important ones:
OUSD – Total Value Locked (TVL)
OUSD – Volume
Beyond the decentralized sphere, Origin Dollar has firmly established its presence on centralized exchanges. Currently ranked #627 on CoinMarketCap, OUSD is listed on two prominent centralized exchanges – KuCoin and Gate.io. Gate.io takes the lead as the primary trading platform for Origin Dollar, boasting a daily volume exceeding 1,200,000 USD, representing a substantial 57.29% of the total volume on centralized exchanges (CEXes).
OUSD ranks among the top 50 most liquid assets on Uniswap V3 according to minimal slippage (check out the full ranking here), boasting a Total Value Locked (TVL) of 0.7 million USD. Our analysis assesses whether OUSD transactions can be executed without causing significant price changes and provides insights into OUSD liquidity pool activity.
Liquidity from the perspective of Michal Rozanski, CEO at Empirica:
“Many tokens provide liquidity across a wide market range, locking up substantial financial assets. However, stablecoins can concentrate liquidity around the peg price – where the real trading occurs” – pointed Michal. “At the same time, large reserves should be held to defend the peg. And it would make sense to at least partially show them to the market by making a wide liquidity position. But it seems that it is not needed at the moment.”
Additionally, OUSD enjoys a strong presence on centralized exchanges, primarily KuCoin and Gate.io. Gate.io, in particular, dominates trading with a daily volume of over 1,200,000 USD, representing a significant portion of the total volume on centralized exchanges (CEXes).
To learn more about the OUSD token, we conducted a short interview with Micah Alcorn – Director of Product at Origin Protocol.
Building such a dedicated and enthusiastic investor base didn’t happen overnight. Here’s how we’ve managed to grow:
A Proven Track Record: Since 2017, Origin has been a committed player building on Ethereum. Our ability to adapt, innovate, and stay true to our vision has allowed us to forge strong connections with our investors and community.
Surviving the Storm: The 2018 bear market filtered out the less serious players, helping Origin stand out against other projects. Our resilience and strategic navigation through different market conditions have reinforced our investors’ trust and confidence in our capabilities.
Partnership with Industry Leaders: Having support from outstanding investors like Alexis Ohanian, Steve Chen, Pantera Capital, and Gary Tan is a testament to our potential and vision. Their belief in Origin adds immense credibility and gives a reassuring nod to other potential investors.
Community-Centric Approach: We believe in empowering our community through transparent governance and inclusive decisions. It’s not just about investment; it’s about building a future together. Origin prides itself on building in public, which we do daily in our Discord.
Aligning with our commitment to build in public, we host community calls every Monday at 12 pm ET in our Discord. These meetings highlight product demos and recent OGV governance proposals, typically involving yield strategies for OUSD and OETH.
OUSD recently added new yield strategies, implementing the DAI Savings Rate and Flux Finance to source additional low-risk yield. As yield increases for OUSD and OETH, the fees earned by the OGV DAO grow proportionally, so the success of Origin’s OTokens incentivizes the DAO.
The most important update for OGV investors was the launch of OETH earlier this year. OETH is Origin’s second OToken, earning the best risk-adjusted yield on ETH instead of USD. Origin Ether (OETH) now has over 3x the TVL of OUSD, so we’ve seen OGV stakers earn increased fees following the launch.
Since OUSD is pegged to USD, liquidity providers have little risk of impermanent loss compared to an ETH-ERC20 pool. With Uniswap v3, liquidity can be provided within a tight range, further bolstering liquidity for OUSD.
A key factor that has encouraged users to provide liquidity on Uniswap is trust. By providing liquidity, users must be exposed to OUSD and confident that the token will remain pegged to USD. Since the beginning, Origin has kept OUSD collateral and yield-earning mechanisms as transparent as possible, helping holders feel confident that OUSD is always redeemable 1:1 with USDC, USDT, and DAI.
As always, DYOR. The Report was prepared by Empirica Liquidity Lab based on the Token Liquidity Ranking – September Edition. All analyses, opinions, and views in this report are based on our research and were prepared for informational purposes. They cannot be considered a suggestion or encouragement to make investment decisions. They are solely up to you.
We are a crypto market maker and liquidity provider for token projects and exchanges connected to major centralized (CEX) and decentralized (DEX) digital asset exchanges. We notice that by adequately setting our liquidity algorithms, we very often lead to an increase in volumes by 30-50% in the short term and up to several hundred percent in the long term. You can discover how we can conduct an effective crypto market making projects by providing liquidity 24/7 on centralized and decentralized platforms.:
