Origin Brings Back Interest-Earning OUSD Stablecoin Following $7M Hack

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Origin is restarting its profit-generating stablecoin after a November attack that left OUSD holders $ 7 million.

From now on users can exchange USDC, USDT and DAI for OUSD again.

As CoinDesk reported in September, the smart contract for OUSD has not yet been examined. With OUSD, users could deposit the most popular stablecoins, which were incorporated into DeFi income strategies (decentralized finance). Returns have been returned to OUSD holders by increasing the balance in each wallet.

As of November, the smart contract had $ 7 million in it, which the company says is a proven demand. However, in mid-November, it was depleted due to a re-entry bug in the smart contract (the same exploit that sank the original DAO).

“We remain committed to our vision of a superior stablecoin for the Ethereum network. Despite the setback from the hack, we return with renewed confidence that we are building something important that people really want, ”said Josh Fraser, CEO of Origin, in a statement.

On December 11th, Origin released a plan to compensate users who lost money in the attack. The first 1,000 OUSD lost for each user would be fully compensated in OUSD. After that, the holders are still being compensated, but now with a little bit of OUSD and later a lot of Origin governance tokens from Origin, OGN.

There have been several tokens that are increasing in value similar to OUSD. For example, Aaves aUSDT and Curves yUSD currently have more than 10% annual return. Ampleforth’s AMPL works a little differently, but offers comparable passive advantages.

With the relaunch, the team released a new autopsy of the attack, which found several locations where their security had collapsed. OUSD contracts have now had two audits, there is a better update process and they are checking insurance.

“Going forward, security will be our number one priority for OUSD,” said Fraser. “As we continue to strive to offer competitive returns, we have learned how difficult it is to put safety first.”