Summary:
Origin would like to increase its presence in the Curve ecosystem through the addition of a gauge for the frxETH/OETH pool.
Origin Ether (OETH) is designed to be the fastest, easiest, and most secure way to stack ETH. OETH can be minted using ETH and select liquid staking tokens as collateral which are then deployed into yield-earning strategies in DeFi. The yield is automatically harvested and compounds directly in holders’ wallets.
For more information about the risks, view the in-depth report on OETH from Llama Risk.
This new gauge will incentivize Frax to join Origin in driving rewards to this shared pool.
References/Useful links:
- Website: https://www.oeth.com
- Documentation: https://docs.oeth.com
- Github Page: https://github.com/originprotocol/origin-dollar
- Llama Risk report on OETH: https://cryptorisks.substack.com/p/asset-risk-assessment-origin-ether
- Discord: https://originprotocol.com/discord
- frxETH/OETH Curve Pool: https://curve.fi/#/ethereum/pools/factory-v2-353/deposit
- frxETH/OETH Gauge Vote: https://dao.curve.fi/vote/ownership/441
Protocol Description:
Origin Ether (OETH) is a self-custodial, yield-generating ETH derivative. The price of OETH stays pegged at 1 ETH, and additional units of OETH show up automatically in holder wallets as yield is generated by the protocol. OETH is fully collateralized and can be redeemed at any time for ETH, stETH, rETH, and frxETH. The current TVL is ~$73M with ~$61M of liquidity on Curve.
The governance token for Origin Ether is OGV which is also listed on Curve.
Motivation:
Origin has been significantly involved with the Curve ecosystem. OUSD (the stablecoin on which OETH is based) was first launched on Curve in July 2021 with the OUSD/3CRV liquidity pool. Through the use of pool incentives, the protocol was able to improve liquidity and drive increased adoption. Similarly, we believe that a gauge for frxETH/OETH will help attract increased liquidity and trading volumes for both tokens.
Origin already has approved gauges for the ETH/OETH, 3CRV/OUSD, and ETH/OGV pools. We are excited to partner with Frax in driving incentives to this new pool.
Specifications:
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Governance: Origin Ether is governed by veOGV holders with any upgrades to the contracts being time-delayed by a 48-hour timelock. More details can be found at https://www.oeth.com/governance.
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Oracles: Where available, Origin Ether uses Chainlink to secure the protocol from pricing attacks. We use a Curve oracle as a fallback for frxETH.
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Audits: OETH has over a dozen audits from Trail of Bits, Certora, Solidified, Narya, and OpenZeppelin.
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Centralization vectors: OETH currently accepts LSDs issued by Lido, RocketPool, and Frax which each have their own centralization risks.
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Market History: ETH/OETH currently has ~$62M of total liquidity on Curve. We anticipate that a meaningful amount of this liquidity will be transitioned to this new frxETH pool.
Vote
Link to frxETH/OETH gauge vote
You can find an editorial note at the top of the report mentioning the integration of the