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# System prepended metadata

title: 'MIP87: OUSD Decentralized Rewards'
tags: [Summaries]

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tags: Summaries
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# MIP87: OUSD Decentralized Rewards

## Summary
This is a summary of the contents of this proposal and its impact, from GovAlpha’s perspective:

- This proposal seeks to invest USDC from Maker's PSM into the Origin Protocol. The Origin Protocol's primary product is the yield-bearing stablecoin OUSD.
- OUSD is backed primarily by USDC and DAI, along with a small amount of USDT. Users can mint OUSD by supplying USDC, USDT, or DAI.
- Yield is generated by supplying the stablecoin collateral to blue-chip DeFi protocols, such as Compound, Aave, and Curve/Convex. Interest, fees, and incentives are converted into additional units of OUSD and are distributed proportionally to each OUSD holder daily via a rebasing mechanism.
- This proposal requires technical work from Collateral Engineering Services and Origin's engineering team to design a smart contract with the following features:
    - Maker Governance can deposit USDC from the PSM into the contract.
    - Maker Governance can withdraw USDC from the contract to the PSM unilaterally.
    - The contract is capable of receiving the daily rebase rewards corresponding to holding OUSD.
- If Maker holds over any amount of USDC in this contract, it will receive the corresponding OUSD yield. 
- OGV is OUSD's Governance Token. If there is over 100M USDC in the contract, then Maker will receive approximately 40M OGV tokens over four years. Further rewards are possible if higher amounts of USDC are deposited into the contract. MIP87c4 details different scenarios and the corresponding amounts and schedule of the OGV rewards. 
- This proposal has been assigned `High-Impact` based on the methodology listed [here](https://forum.makerdao.com/t/introducing-impact-estimations/14267).
- This proposal is eligible to the November Governance Cycle.

***Disclaimer: These summaries are intended to be a guide and not a source of truth. You remain responsible for any actions you take on the grounds of this information. Please note the date when the summary was last updated to judge accuracy.***

*Updated 2022-10-28*