General
Summary
We would like to propose on addition of a wsuperOETHb market to Compound V3 on the Base instance.
Token Asset Name
Wrapped Super OETH (wsuperOETHb)
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 (OUSD), and in 2023 launched Origin Ether (OETH).
Super OETH (superOETHb) is the next iteration of OETH and is a superior LST with an extremely tight 1:1 peg and high yields thanks to a combination of the OETH AMO and DVT direct staking through SSV/P2p. superOETHb yields are able to reach double digit levels, making it an exceptionally perfect token for lending and borrowing against ETH. superOETHb was built reusing 90% of the code from OETH, for which the codebase has already been audited 12+ times, and for which there is also a Compound onboarding proposal currently on the forum.
Super OETH is the first token in a new category of liquid staking: Supercharged LSTs. Supercharged LSTs will have materially higher yield while being designed for L2s, with a similar risk profile to mainnet LSTs. Ethereum liquid staking is amplified with chain-specific, auto-compounded incentives. Deep concentrated liquidity pools guarantee exits with minimal costs - users will never lose ability to convert back to ETH.
wsuperOETHb is a ERC-4626 tokenized vault designed to accrue yield in price rather than in quantity. When you wrap superOETHb, you get back a fixed number of wsuperOETHb tokens. This number will not go up - you will have the same number of wsuperOETHb tokens tomorrow as you have today. However, the number of superOETHb tokens that you can unwrap to will go up over time, as wsuperOETHb earns yield at the same rate as standard superOETHb. The wsuperOETHb to superOETHb exchange rate can be read from the contract (function number 16), or via the superOETHb dapp.
Current exchange rate as of 9/25/24: 1 wsuperOETHb = 1.01125281 superOETHb
Performance
Super OETH has seen incredible growth since launch. Proof of Yield tracks the distribution of each Super OETH rebase event and displays the compounded yield on an annualized basis each day. The current Super OETH TVL sits at $206m with a native yield of 16.55% APY:
Super OETH has reached the number one spot by TVL on Defillama for yield projects on Base and accounts for a large amount of the Aerodrome Slipstream TVL.
There has been incredible demand for borrowing ETH against Super OETH for leverage looping on money markets. Utilization has been 100% the last week, any ETH added is almost immediately borrowed:
Morpho - Morpho
Ionic - Ionic
Origin also has managed to integrate and onboard Super OETH into smaller projects, including:
Spectra - Spectra
Pooltogether - Pooltogether
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 Super OETH 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.
We’ve noticed many 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 projects who plan to integrate the LSTs, or for users who plan to loop LTSs for additional yield. This is not the case with OETH, and it will not be the case with Super OETH.
Using Super OETH on Compound will produce significantly higher yield than the other top LSTs and have a near perfect ETH peg. Utilizing a concentrated Aerodrome liquidity pool with the tightest tick possible helps make Super OETH the most pegged L2 LST currently available, while being able to reach double digit yields.
Super OETH has a native yield of 16.55% APY - at the current ETH borrow rate on Compound Base of 4.24%, one loop at 75% LTV would now earn you 25.78% APY. After 5 loops that number jumps to 44.72%, or 46.27% when including the COMP emissions. These figures are not possible with the LSTs and LRTs currently supported on Compound. Our vision for Super OETH is for it to become both the most trusted LST, and also the most lucrative for those seeking to use an LST for leveraged staking.
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 - 171.6k followers
Discord - 43.16k members
Telegram - 24.65k members
Facebook - 28k likes, 30k followers
Reddit - 8.5k members
Youtube - 4.07k subscribers
Github - 77 public repositories
Market Risk Assessment
Market Cap of the token
$206.61m (79.5k ETH)
Minimum and maximum market cap of the token within the last 6 months.
Min: $0
Max: $211.91m
The largest exchanges where the token is listed and its respective liquidity
Super OETH is listed on the following DEXs:
- Swapping on WETH/superOETHb - $202.67mm TVL, $4.69m volume
- Swapping on OGN/superOETHb - $12.8m TVL, $215k volume
- Swapping on USDC/superOETHb - $19.7k TVL, $300 volume
1inch is enabling routes for wsuperOETHb > ETH and ETH > wsuperOETHb using these DEXs, as well as using the 4626 contract when applicable.
The largest smart contracts balances of tokens and what those contracts do.
0x6446021f4e396da3df4235c62537431372195d38 - This is the largest Aerodrome deposit contract, 66213.7444328213690 superOETH
0x6fb655476fdcfb9712dd200308d941a1c6d1119e - This is the second largest Aerodrome deposit contract, 2479.95279723465940 superOETH
0x7FcD174E80f264448ebeE8c88a7C4476AAF58Ea6 - This is the wsuperOETHb contract, 1367.23723383261945 superOETH
Provide the volatility of the token.
Since superOETHb is pegged 1:1 to ETH, superOETHb volatility is directly related to ETH’s volatility.
Daily Volume: $1-4m
Total supply
The current supply of superOETHb is 79,503.92 superOETH (79,503.92 ETH), or $206.61 m at current prices. Analytics for Super OETH are always available on-chain via the Analytics Page.
Emission schedule.
There is no set emission schedule for Super OETH. Similar to stETH and OETH, Super OETH is minted on demand when users deposit ETH into the protocol. Exits to ETH are always available via the Aerodrome pool. Permisionless async redemptions are on the roadmap and are currently pending audit.
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 Super OETH holders: holders
Super OETH can be minted by anyone using ETH via the Super OETH 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 Super OETH docs
Is it pausable?
The Super OETH 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 Super OETH dapp is unavailable to people in the USA, and certain sanctioned countries.
Smart contract risks
Codebase & On-chain Activity:
Provide a Github repository for the underlying token contracts
origin-dollar/contracts at master · OriginProtocol/origin-dollar
OUSD, OETH, and Super OETH are stablecoins that passively accrue yield while you are holding it - OriginProtocol/origin-dollar
Provide a test suite with code coverage.
origin-dollar/contracts/test at master · OriginProtocol/origin-dollar
OUSD, OETH, and Super OETH are stablecoins that passively accrue yield while you are holding it - OriginProtocol/origin-dollar
Provide Etherscan links with verified contracts
Super OETH Contract: $2,385.39 | Super OETH (superOETHb) Token Tracker | BaseScan
Wrapped Super OETH Contract: Wrapped Super OETH (wsuperOETHb) Token Tracker | BaseScan
Give the age of the token in days
As of 9/25/24, Super OETH is 50 days old
Given the number of transactions in the contract to date
To date there are 7,363 total transfers
Security Posture:
What audits, if any, were performed? Provide links to the reports if they exist.
superOETHb and wsuperOETHb were built reusing 90% of the OETH code, which was built reusing 95% of the OUSD code, of which many audits have been done since 2020. Not that long ago, OUSD reached a market cap of $300m without breaking, and without diminishing the APY it was capable of generating. All OETH audits can be found in the audits section of the OETH docs. We have recently retained yAudit to look at our PRs as we code, and OpenZeppelin is also held on retainer to review 100% of the OETH and OUSD smart contract changes.
Does the project have an active bug bounty program?
Origin maintains an active bug bounty with rewards ranging 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, where Origin maintains a median resolution time of 6 hours.
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. Super OETH, wsuperOETHb, and wOETH will have no exposure to stablecoins nor any other pegged asset aside from WETH.
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?
wsuperOETHb is currently only available on the Base chain. There are plans to roll out Super OETH on Optimism in the near future as mentioned here and here, and the Optimism logo has already been added to the OETH dapp with the ticker wsuperOETHo. We look forward to having wsuperOETHo supported on Compound once it is ramped up later this year. superOETHo has already qualified for multiple grants from the Optimism foundation.
If so, will the tokens be natively minted on the other networks or bridged across?
wsuperOETHb is currently only available on the Base chain, but wOETH which is used for a portion of the underling superOETHb yield, is bridged from the Ethereum mainnet using Chainlink CCIP.
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. CCIP also has defined cross-chain transfer limits.
Token contract Behavior:
Does the token have more than one address?
There is only one superOETHb contract and one wsuperOETHb contract. The full Super OETH contract registry can be seen in the OETH 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 Super OETH 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 that Super OETH is a rebasing token. That is, the token holder’s balance increases as yield is generated. By default, Super OETH 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.
wsuperOETHb earns yield via price appreciation, but does not rebase.
Is it burnable?
When permisionless async redemptions are enabled later this year, Super OETH will be burned on redemption for ETH upon withdrawal.
Does the token contract have a fallback function? If so, when does it revert?
Super OETH 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 no, who can mint?
Super OETH supply is not fixed, it can be minted by anyone using ETH via the Super OETH dapp. However, the Super OETH dapp is unavailable to people in the USA, and other sanctioned countries.
Is it a rebasing token?
Super OETH is a rebasing token, but wsuperOETHb 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 Super OETH 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.
Super OETH is flash swappable since we are in Aerodrome pools which function the same as Uniswap pools which effectively means its flash loanable, but Origin does not offer a flashloan service for Super OETH. Other 3rd party platforms may provide this service.
What are the typical gas costs for calling each of the standard ERC20 functions?
Gas costs are typically negligible on Base.
Price Feed Behavior
Is the price feed supported by ChainLink?
Through its integration with Aerodrome, Super OETH is able to ensure a 1:1 peg with ETH at any scale. The Super OETH AMO holds a portion of the protocol’s underlying collateral in a concentrated liquidity pool with an extremely tight price range within a single tick above 1.0000 WETH. This allows anyone to sell superOETHb into the pool for at least 1 WETH (minus swap fees). superOETHb is also derived from OETH, which has mainnet oracles from Chainlink, Tellor, and Dia. A superOETHb Tellor feed is available to be used if needed.
Chainlink has actually recommended protocols treat superOETHb to be 1:1 with ETH rather than use an oracle, as Aave has done with stETH. Both Morpho and Silo have done this with their wOETH markets.
By design, superOETHb is the most pegged L2 LST:
How often will price updates be posted?
If used, the Tellor superOETH/WETH feed has a 4 hour heartbeat.
At what price difference threshold will price updates be posted?
If used, the Tellor superOETH/WETH feed has a 2% deviation threshold.
Upgradability:
Is it upgradeable? If so:
Yes, Super OETH is upgradable
Who is authorized to make an upgrade?
We have a timelock contract that is controlled by a 5 of 8 multisig. Signers are trusted contributors who are actively involved in the day-to-day management of the protocol and all have a vested interest in helping the protocol succeed.
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 Super OETH contracts are owned by the Timelock contract. All upgrades will have to go through Timelock. The timelock is controlled by the 5 of 8 multisig mentioned above.
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 wsuperOETHb 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