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On this page
  • How it works
  • Pool Booster
  • Other Use Cases
  • Yield Forwarding Proposals
  1. Yield-bearing Tokens
  2. Core Concepts

Yield Forwarding

PreviousAMONextOUSD

Last updated 2 days ago

Yield Forwarding is an upgraded feature that was added to all of Origin's yield-bearing tokens (OUSD, OETH, Super OETH, OS). With Yield Forwarding, protocols can now route the yield from Origin’s rebasing tokens to approved smart contracts.

By default, Origin’s yield-bearing tokens held in smart contracts do not rebase. With Yield Forwarding, protocols can submit proposals to the OGN DAO to direct yield from OS, OETH, Super OETH, and OUSD held in smart contracts to approved addresses. By doing so, yield earned on these tokens can be used for various purposes, offering a new source of revenue.

How it works

Yield Forwarding gives OGN governance the ability to forward yield during a rebase from a source address to a target address. Once enabled, yield earned on tokens held in the smart contract will be sent a different, approved address.

Yield forwarding represents a one-to-one relationship between the source and target address. This means that a source address is unable to forward yield to more than one address and a target address is unable to receive forwarded yield from more than one source. See an illustration below.

Pool Booster

One of the first use cases for Yield Forwarding is Pool Booster which uses yield from Origin tokens to fund incentives on AMM pools. Typically, protocols pair their token with WETH, S, or stablecoins in liquidity pools, but these funds largely sit idle.

Protocols can increase the capital efficiency of their liquidity pools by pairing with Origin's yield-bearing tokens (OUSD, OETH, Super OETH, OS) and enabling Yield Forwarding. Yield generated by Origin’s rebasing tokens in these pools can be used to automatically incentivize the pools. This means increased pool APYs and deeper liquidity for their token pair.

Example Flow of Funds

Other Use Cases

Note that Yield Forwarding has many other potential applications including funding a protocol’s treasury, funding staking rewards, DCA'ing into tokens, and beyond. Protocols can earn substantial yield on their ETH and stablecoin holdings by implementing Yield Forwarding, allowing them to extend their runway and fund future initiatives.

Yield Forwarding Proposals

If you'd like to propose an idea for a target contract or discuss a Yield Forwarding proposal, feel free to start a conversation in our Discord or official Governance Forum. Proposals to enable Yield Forwarding for a source address can be made using the Rebase Opt-In Proposal.