Risk Assessment: Origin Dollar (OUSD)
Date: April 7, 2026
SIP: SIP2.47: Onboard OUSD to the Lower-Risk USDC Mainnet Fleet
Summary
Origin Dollar (OUSD) is a rebasing ERC-20 stablecoin that earns yield automatically through on-chain strategies on Morpho and Curve, backed 100% by USDC since November 2025. The defining structural disqualifier for the LR fleet is confirmed cross-chain collateral deployment: a portion of OUSD’s USDC reserves is currently deployed on Base and Hyperliquid via non-atomic bridge settlement, making the full collateral base non-instantly redeemable. The Curve AMO introduces a correlated depeg vector under redemption stress but does not constitute a standalone fleet disqualifier.
BA Labs does not recommend onboarding OUSD to the Low Risk (LR) USDC Mainnet fleet. For the High Risk (HR) fleet, BA Labs recommends onboarding OUSD.
At a Glance
Protocol Mechanism
OUSD is a rebasing ERC-20 stablecoin deployed at 0x2a8e1e676ec238d8a992307b495b45b3feaa5e86, first launched in September 2020. Users mint OUSD by depositing USDC into the OUSD Vault at 0xE75D77B1865Ae93c7eaa3040B038D7aA7BC02F70. As the protocol earns yield, it periodically rebases total OUSD supply upward. Per the rebasing documentation, contracts that have not opted into rebasing forfeit their rebase allocation to opted-in holders, including OUSD held in Curve LP positions via the AMO, which amplifies effective yield for regular holders.
As of a governance proposal passed November 7, 2025, OUSD transitioned from a USDC/USDT/USDS basket to a single-collateral model backed 100% by USDC. Collateral is deployed across four positions: a primary Morpho lending vault on Ethereum co-curated by Origin and Yearn, per the new yield engine announcement; a Curve AMO position on Ethereum; a Morpho vault on Base, per the Base expansion announcement; and a Morpho vault on Hyperliquid. The AMO mints OUSD beyond the USDC collateral in the vault and deploys it alongside USDC into the OUSD/USDC Curve pool; on unwind, the minted OUSD is burned and USDC is restored.
Backing / Collateral Breakdown
The following allocation is sourced directly from the Origin analytics dashboard as of April 7, 2026:
| Strategy |
Asset Amount (USDC) |
Network |
Allocation |
| Morpho OUSD Vault |
$3,775,173 |
Ethereum |
66.35% |
| AMO (Curve) |
$1,314,557 |
Ethereum |
23.10% |
| Morpho OUSD Base Vault |
$587,128 |
Base |
10.32% |
| Morpho OUSD Hyper Vault |
$10,021 |
Hyperliquid |
0.18% |
| Unallocated |
$2,883 |
Ethereum |
0.05% |
| Total |
$5,689,762 |
|
100% |
The $1.31M AMO entry represents the USDC-backed value of the Curve position. The gap between total on-chain assets ($5.69M) and circulating OUSD supply (~$7.6M), approximately $1.9M, is AMO-minted OUSD currently deployed in the Curve pool without USDC backing, which will be burned on unwind. The OUSD/USDC Curve pool therefore holds approximately $3.2M of OUSD ($1.31M backed + $1.9M AMO-minted) alongside $1.31M of USDC, for a total pool TVL of approximately $4.5M. The analytics dashboard also shows OETH and stcUSD as collateral types; per the Morpho vault description, these are assets that Morpho borrowers post against USDC loans, not OUSD reserve assets, and are consistent with the 100% USDC backing model.
Redemptions and Liquidity
OUSD supports two redemption paths, as described in the Origin Dollar documentation. Direct vault redemptions (via the Origin Dapp) process after a 10-minute standard delay, extending to 24 hours when the vault requires additional liquidity; a 0.25% exit fee applies, redistributed to remaining holders. At current on-chain total assets of $5.69M with $3.51M classified as liquid, the vault can service approximately 62% of total assets before the extended delay would be triggered. The AMM route executes through the OUSD/USDC Curve pool, avoids the 0.25% exit fee, but is constrained by the ~$4.5M pool TVL derived above: at current pool depth, meaningful Lazy Summer allocations may generate material price impact on exit under stressed conditions.
Fees
The protocol charges a 10% performance fee on all yield generated, per Exponential DeFi’s protocol analysis (the most specific available source; the fee category is independently confirmed by DeFiLlama as “performance fees charged on origin products”), and redirected to OGN stakers via ongoing buybacks. The ~5.49% APY shown on the Origin dapp is the net yield to depositors after this fee. A 0.25% exit fee applies to direct vault redemptions and is redistributed to remaining OUSD holders as yield; it is avoidable via AMM routing when pool depth permits. The co-curated Origin/Yearn Morpho Vault incurs standard Morpho curator and protocol fees in addition to the above.
Governance and Roles
Both multisigs were analyzed via safe.yaudit.dev. Key findings are summarized below.
The Governor role is held by a confirmed 5-of-8 Safe multisig at 0xbe2AB3d3d8F6a32b96414ebbd865dBD276d3d899 (62.5% threshold, score: 81/100), administering the governor contract at 0x830622bdd79cc677ee6594e20bbda5b26568b781. Notable findings: Safe version 1.1.1 (current: 1.5.0, -8 pts), one active module CollectXOGNRewardsModule (-4 pts), and two owners with recent non-multisig activity. Average signing duration is 8h 55m (slow, positive). A 48-hour timelock applies to governor-level actions.
The Guardian role, responsible for strategy rebalancing including cross-chain deployments, operates without a timelock at 0xF14BBdf064E3F67f51cd9BD646aE3716aD938FDC (score: 66/100). On-chain verification confirms the threshold is 2-of-8 (25% of owners), which is notably low for a role with the ability to move collateral cross-chain without timelock. Additional findings: Safe version 1.1.1 (-8 pts), and an average signing duration of 2h 1m flagged as moderate (-8 pts heavily weighted). OGN stakers hold voting power and receive 100% of protocol fees. The Guardian’s ability to increase cross-chain allocations beyond current levels without a governor vote or timelock is not explicitly capped in available documentation.
Risk Assessment and Conclusions
The primary LR fleet disqualifier is the confirmed cross-chain collateral deployment. $587,128 (10.32%) of OUSD assets are deployed on Base and $10,021 (0.18%) on Hyperliquid, per the Origin analytics dashboard and the Base expansion announcement. These positions settle via bridge with non-atomic settlement times incompatible with the LR fleet’s requirement for effectively instant capital exit, irrespective of the merits of the underlying strategies.
The AMO’s Curve LP position introduces a correlated depeg risk: under redemption stress, coordinated OUSD selling shifts the pool toward OUSD, causing OUSD to trade at a secondary market discount even while the vault is technically solvent. This is a flagged risk for the HR fleet, mitigated by the stablecoin-only pool design and the vault’s ability to burn AMO-minted OUSD on unwind.
At current on-chain total assets of ~$5.69M, any material Lazy Summer HR fleet allocation would represent a significant portion of OUSD’s total supply, creating a self-referential dynamic where large redemptions could exhaust vault liquidity or shift the Curve pool materially. Allocation sizing should be assessed at the time of onboarding and capped accordingly.
OUSD suffered a $7M reentrancy exploit on November 16, 2020. Origin published a full post-mortem, rebuilt the contracts with reentrancy guards, and compensated affected users in full. The protocol has since undergone 12+ audits and operated without a further major incident for approximately 4 years.
Fleet Recommendation
| Fleet |
Recommendation |
| LR (Low Risk) |
Do Not Recommend |
| HR (High Risk) |
Recommend |
BA Labs does not recommend onboarding OUSD to the LR fleet due to confirmed cross-chain collateral deployment on Base and Hyperliquid. BA Labs recommends onboarding OUSD to the HR fleet.
