Positive Performance
Product Governance Tokens
Origin Protocol submitted a governance proposal revealing its updated roadmap and intention to merge OGN and OGV tokens. OGN holders will be able to vote on the proposal until April 9, and if it is approved, a governance proposal for OGV will be put to the vote.
As the creator of the yield-generating stablecoin in 2019 and the creator of Origin Ether (an LST with enhanced yield) in 2023, the Origin team is ready to execute the roadmap described below.
OGN and OGV Merger
The core team formally submitted a decentralized governance proposal for OGN to acquire OGV. If approved, the value of all current and future Origin products will be aggregated into OGN. OGN will also serve as the governance token for all Origin products.
How will the merger create value for Origin Token holders?
Listing & Liquidity: Investors will benefit from the depth and accessibility of OGN liquidity. OGN is listed on Coinbase, Binance, and many other exchanges.
Community Alignment: The Origin community and team will drive value and products around a single token. OGN currently has over 40,000 on-chain token holders.
OGV Undervalued: Due to lack of liquidity and accessibility, OGV remains undervalued based on revenue and TVL, despite having over $200 million in total TVL and $1.5 million in annual revenue.
If both the OGN and OGV communities accept the merger proposal, the entire Origin ecosystem will revolve around OGN. OGN will have its current nine-digit TVL, and will have more resources to grow Origin's total TVL into the billions.
The OGV DAO treasury will also be migrated to the OGN community. OGV holders will have the opportunity to transfer their tokens to an equivalent OGN that will benefit from deeper liquidity and a larger number of token holders.
OGN will adopt veToken governance and economic attributes similar to OGV/veOGV and other DeFi tokens. This model has been proven to effectively maximize protocol security and reward long-term supporters.
At the same time, Origin also proposed to introduce new token economic mechanisms for OGN that the Origin community has been requesting, including a destruction mechanism and a new staking mechanism.If the OGN and OGV merger proposal passes, further details on these mechanisms will be announced in a subsequent governance proposal.
LST Yield Derivatives
Origin Ether (OETH) is currently expanding to various L2s, starting with Arbitrum, which went live in April. The team is next targeting Optimism and Base. These L2s will help Origin reach new audiences and increase the utility of OETH through new product integrations and LST yield derivatives.
In the coming months, Origin will launch OETH derivatives on different L2s, allowing users to earn enhanced yields on multiple chains. Each chain will have a specific LST yield derivative. The product will use OETH as a building block, but will not adjust its risk profile.
These derivatives will provide high yields and deep liquidity for use by other protocols. They will use Mainnet OETH as an initial building block, but will safely provide 2-3 times higher yields than just holding LST. Given the huge yield, LST yield derivatives have the potential to generate strong growth for Origin’s fees, which will be used to buy back and burn OGN.
To summarize:
Origin will expand to Arbitrum this month, followed by Base and Optimism.
LST yield derivatives will be launched on multiple chains, offering 2-3x LST yield.
Fees will accrue to OGN through the buyback and burn mechanism.
Universal LST for EVM chains
With Origin’s proven OETH model on Ethereum, Origin has the opportunity to launch native LST on other EVM-compatible chains. Origin is working with a well-known EVM chain to establish the first foothold in this expansion strategy, with a target launch date of Q2 this year.
Origin’s long-term goal is to create a flagship liquidity staking model for universal LST across multiple networks, capture market share in emerging markets, and promote LSTs on these chains.
Origin’s secret weapon is its algorithmic market operation (AMO). Origin AMO helps OETH maintain a strong peg and can be applied to any type of redeemable asset. In addition to peg stability, AMO provides at least 2x capital efficiency on liquidity pools, enabling LSTs to mine incentives to enhance returns.
