Add collateral wOS on Sonic

Add collateral wOS on Sonic

General

Summary

In response to the proposal of deploying Sonic markets on Compound, we would like to propose the addition of a wOS market.

Token Asset Name

Wrapped Origin Sonic (wOS)

Description of the project and the token

Origin Protocol was founded by Web3 veterans Josh Fraser and Matthew Liu in 2017 and is one of the most venerable projects in the space. Josh and Matthew are joined by the fully doxxed Origin team and community, which includes hundreds of thousands of members and open-source contributors. Origin has raised $38.1M from top investors including Pantera, Spartan Group, Foundation Capital, BlockTower Capital, Steve Chen, Garry Tan, and Alexis Ohanian, and currently maintains a multimillion dollar treasury. In 2020 Origin launched the Origin Dollar, a yield-generating stablecoin that reached a TVL of $300m in 2022. Origin Sonic is Origin’s fourth YBA, third LST, and first deployment on Sonic.

This is Origin’s 3rd proposal on Comound, following the proposals to add markets for OETH on Ethereum and superOETHb on Base that are currently going through the Compound governance process.

Origin Sonic (OS) was launched in January 2025 and is an ERC20 LST that generates yield while sitting in your wallet by delegating S to a node operator. Similar to stETH, OS yield is paid out daily and automatically (sometimes multiple times per day) through a positive rebase in the form of additional OS, proportional to the amount of OS held.

wOS is a ERC-4626 tokenized vault designed to accrue yield in price rather than in quantity. When you wrap OS, you get back a fixed number of wOS tokens. This number will not go up - you will have the same number of wOS tokens tomorrow as you have today. However, the number of OS tokens that you can unwrap to will go up over time, as wOS earns yield at the same rate as standard OS. The wOS to OS exchange rate can be read from the contract (function number 16), or via the OS dapp.

Current exchange rate as of 2/04/25: 1 wOS = 1.00614219 OS

Origin has managed to integrate OS and wOS to a range of verticals across Defi, including vaults, perps, and money markets :

Benefits to Compound Community

Since 2021, Origin has streamed millions of dollars in stablecoin to Compound markets via OUSD strategies, generating millions in yield and significantly boosting Compound’s TVL. This new OS market would lead to additional increased TVL for Compound, additional revenue to the Compound Protocol and DAO from active loans and liquidations, and will attract a wider user base.

Several LSTs trade below their peg due to DEX fees and slippage, and to reflect the time value of money. LSTs that consistently trade below peg effectively impose a hidden exit fee - certain LSTs often trade ~0.25% below peg, meaning it takes three weeks of staking to break even. This may be ok for long-term holders, but is terrible for users who plan to loop LTSs for additional yield. This was not the case for OETH or superOETHb, and will not be the case with OS.

Using OS on Compound will produce higher yield than other supported Sonic LSTs and have a near perfect S peg. The coming OS AMO will strengthen the peg, increase capital efficiency, and maximize yield. Our vision for OS is for it to become the most trusted LST for those seeking to use an LST for leveraged staking on Sonic.

Resources (Website, Social Media Links and docs)

Docs: https://docs.originprotocol.com/

Twitter : x.com

Twitter Intern: x.com

Telegram: Telegram: Contact @originprotocol

Discord: Origin Protocol

Blog: Origin Protocol | Blog

Github: Origin Protocol · GitHub

The proposal author their contact info

Email: peter@originprotocol.com

Discord: @slagathorthemammothking

Telegram: @Pgee13

The relationship between the author of the new market proposal and the token

Peter is part of the Origin Protocol core team. This proposal was written using the Compound & OpenZeppelin listing checklists.

Social channels Metrics

Here are Origin’s community stats:

Twitter - 170.4k followers

Discord - 45.12k members

Telegram - 21.022k members

Facebook - 28k likes, 29k followers

Reddit - 8.5k members

Youtube - 4.05k subscribers

Github - 132 people, 69 public repositories

Market Risk Assessment

Market Cap of the token

Origin Sonic launched on 1/14/25 and currently has a market cap of $2.6m (5.21M S)

Minimum and maximum market cap of the token within the last 6 months.

Min: $0

Max: $2.6m

The largest exchanges where the token is listed and its respective liquidity

OS is listed on the following DEXs:

SwapX OS/S: AlgebraPool | Address 0xa76Beaf111BaD5dD866fa4835D66b9aA2Eb1FdEc | SonicScan Block Explorer

Equalizer OS/S: Pair | Address 0x99ff9d3E8B26Fea85a7a103D9e576EfdC38fB530 | SonicScan Block Explorer

We are exploring deploying additional OS/S pairs across other Sonic-supported DEXs including: Shadow, WAGMI, and Curve

We have also been in contact with DEX aggregators to enable routing for wOS > S and S > wOS using these DEXs, as well as using the 4626 contract when applicable.

The largest smart contracts balances of tokens and what those contracts do.

0xa76Beaf111BaD5dD866fa4835D66b9aA2Eb1FdEc - This is the SwapX pool contract, 3.2M OS

0x9F0dF7799f6FDAd409300080cfF680f5A23df4b1 - This is the wOS contract, 1.2M OS

Provide the volatility of the token.

Since OS is pegged 1:1 to S, OS volatility is directly related to the S volatility.

Daily Volume: $18k-688k

Total supply

The current supply of OS is 5.21M OS (5.21M S), or $2.6m at current prices. Analytics for OS are always available on-chain via the Analytics Page.

Emission schedule.

There is no set emission schedule for OS. Similar to stETH, OS is minted on demand when users deposit S into the protocol, and burned on demand when users exit OS for the collateral S.

Decentralization

How is this asset distributed amongst token holders? List the top 10 holders, the percentage of each holder, and tag any of them if they are known.*

Largest OS holders: holders

OS can be minted by anyone using S via the OS dapp

List all of the privileged roles in the token contract. This can include whitelisted EOAs, Multi-sigs or DAOs.

Certain functions can be called by Origin Guardians - these can all be found in the governance section of the OS docs.

Is it pausable?

The OS contract can be paused by Guardians to handle security threats and crisis management.

Does it have a blacklist or whitelist?

There is no blacklist or whitelist, however the OS dapp is unavailable to people in certain sanctioned countries.

Smart contract risks

Codebase & On-chain Activity:

Provide a Github repository for the underlying token contracts

Provide a test suite with code coverage.

Provide Etherscan links with verified contracts

Give the age of the token in days

As of 2/04/25, OS is 21 days old

Given the number of transactions in the contract to date

To date there are 11,592 total transfers

Security Posture:

What audits, if any, were performed? Provide links to the reports if they exist.

OS was launched in January 2025 with 95% of its code forked from OUSD, which has been the basis of our other yield-bearing tokens OETH and Super OETH as well. This allows OS to inherit years of top-tier audits and a proven track record of securing hundreds of millions of dollars worth of underlying collateral. All OS audits can be found in the audits section of the OS docs. OpenZeppelin is also held on retainer to review 100% of the smart contract changes.

Does the project have an active bug bounty program?

Yes, Origin maintains an active bug bounty. The rewards range in size from $100 OUSD for minor issues to $1,000,000 OUSD for major critical vulnerabilities. The bug bounty program is currently administered by Immunefi.

Provide emergency contacts with their responsiveness levels and response availabilities

The Origin team is available 24 hours a day via Discord. On March 10 2023 when USDC depegged from the dollar (and therefore from OUSD), it took the Guardians/Origin engineers about 4 minutes to notice, and 16 minutes to start the process of moving the funds to a safer strategy. OS and wOS will have no exposure to stablecoins nor any other pegged asset aside from S and wS.

List additional security and formal verification tools used in development

We mostly manually verify deployments before the multisig tx is created. We use Sol2uml to verify deployed contracts. We also have Slither as part of our CI. We also have some scripts in our repo that we use as needed.

List all monitoring services used by the token, if any.

We use an in-house solution based on Subsquid as our indexer and Grafana. We also add custom alerts on Tenderly for critical events.

Multi-Chain Strategy

Will the token include implementations on other networks?

wOS is currently only available on the Sonic mainnet. There are no plans to roll out wOS or OS on other chains at this time.

If so, will the tokens be natively minted on the other networks or bridged across?

We use Chainlink CCIP for OETH bridging, but there is no bridge for OS at this time.

Are there any mitigations in the contracts in case a bridge becomes inoperable or compromised?

CCIP has cursed state if the bridge is compromised. We check that state before we do any cross chain op for OETH. CCIP also has defined cross-chain transfer limits.

Token contract Behavior:

Does the token have more than one address?

There is only one OS contract and one wOS contract. The full OS contract registry can be seen in the OS docs.

Does the token use a compiler version greater than 0.8.0 or the SafeMath? If not, explain how the protocol deals with possible overflows and underflows

Yes, we are currently compiling with Solidity 0.8.7. There are still some parts of the code that still use SafeMath from before the upgrade to Solidity 0.8.x

During the execution of the token’s functions, does the token execute external code chosen by the caller or receiver? If so, please explain the reasoning behind this decision

No, the OS token does not allow code chosen by the caller or receiver to be executed. Specifically, we don’t support ERC-777.

How does the token contract deviate from a standard implementation of ERC20? Any additional features that the Compound DAO should know about?

The main feature to be aware of is OS is a rebasing token. That is, the token holder’s balance increases as yield is generated. By default, OS does not rebase if the token holder is a smart contract. If a contract can support rebasing, there is a governance process to opt the contract into rebasing.

wOS earns yield via price appreciation, but does not rebase.

Is it burnable?

OS is burnable on redemption for S upon withdrawal.

Does the token contract have a fallback function? If so, when does it revert?

OS is proxied which has a fallback function. This just does the delegate call to the implementation contract. The implementation contract does not have a fallback or receive function.

Does it have a fixed supply? If not, who can mint?

OS supply is not fixed, it can be minted by anyone using S via the OS dapp. However, the OS dapp is unavailable to people in certain sanctioned countries.

Is it a rebasing token?

OS is a rebasing token, but wOS is not.

Does the token charge fees on transfers?

There are no fees charged on transfers.

Does it implement any transfer hooks? Or hooks on any method?

No

Is the contract performing arbitrary delegate calls? If the answer is yes, indicate who can make these calls and to what contracts

The proxy contract delegates to the implementation contract. No other delegates are used in the OS token

Is it flash mintable? If yes, please provide more information on this feature

No

Is it flash loanable? If yes, please indicate who offers the service.

OS is flash swappable since we are in SwapX pools which effectively means its flash loanable, but Origin does not offer a flashloan service for OS. Other 3rd party platforms may provide this service.

What are the typical gas costs for calling each of the standard ERC20 functions?

Typical gas costs are < $0.01 per transaction at current S prices.

Price Feed Behavior

Is the price feed supported by ChainLink?

We are in talks with Chainlink, Redstone, Pyth, and API3 about deploying an OS/S price feed. The redemption rate of OS to S can be used in the meantime.

Upgradability:

Is it upgradeable? If so:

Yes, OS is upgradable

Who is authorized to make an upgrade?

We have a timelock contract with a 24 hour delay.

Which components are upgradable?

The whole token contract can be upgraded.

How does the upgradeability design work? Who manages it and how are upgrades performed?

All OS contracts are owned by the Timelock contract. All upgrades will have to go through Timelock.

Does it emit an event when the implementation is updated?

Yes, it emits event Upgraded(address indexed implementation);

Next Steps

Origin invites the Compound community to consider this application for listing the wOS market and welcomes any suggestions in this direction. Origin also looks forward to the community to suggest:

  • Collateral Factor
  • Liquidation Factor
  • Liquidation Penalty
  • Supply Cap

I like being risk on, only concernned about the liquidity being low at the moment.

On SwapX there is a $2.5m LP but it is concentrated liquidity, can go out of range with little backstop.

I like it overall though

1 Like

Appreciate your quick response! Completely understand your concern. With the addition of additional OS liquidity pools and an AMO we should remove any liquidity issues that may arise. OS redemptions back to S are also currently available and were available at launch.

1 Like