Archimedes’ partnership with Origin Protocol is a game changer for DeFi players big and small

Archimedes is an established and extensively audited DeFi lending and borrowing platform. The application is uniquely aimed at generating real long-term returns with up to 10x secured leverage for investors. The platform has partnered with Origin Protocol to integrate Origin Dollar (OUSD), DeFi’s first high-yield stablecoin. While OUSD already has a higher yield than stablecoin lending on Aave, Compound and Curve, it can now be leveraged by Archimedes Finance to further increase yields.

As two of DeFi’s most recognized and respected innovators, the Archimedes-Origin partnership allows users to simultaneously benefit from Origin Dollar returns and Archimedes leverage capabilities. Origin’s robust performance during the ongoing crypto winter and the reliability of OUSD – Origin’s USD-pegged high-yield stablecoin – were both key factors in driving the integration forward.

OUSD’s proven peg mechanism has consistently worked well for users. Since the stablecoin is 1:1 hedged with USDC, Dai, and USDT, OUSD holds its peg in a similar fashion to the leading stablecoins. Origin’s values ​​of decentralization and self-custodial also align closely with those of the Archimedes team, especially as both projects strive to build better, more transparent, and highly secure DeFi products and services for users around the world.

Understanding Archimedes and OUSD under the hood

OUSD is hedged 1:1 by a pool of USDC, USDT and DAI. Everyone who holds OUSD earns compound returns generated by blue-chip lending protocols and decentralized exchanges. OUSD uses thoroughly tested and vetted smart contracts to move stablecoin assets in and out of liquidity pools across various money markets such as Aave, Compound and Curve. This allows OUSD to guarantee its holders the best possible return from the many options available in the market.

When a user wants to buy a leveraged OUSD position, they simply deposit their OUSD on the Archimedes platform at ArchimedesFi.com. From there, they can then participate in an auction to pay for the leverage with ARCH, Archimedes’ governance and utility token. The auction serves to determine the fair market price for the leverage effect. In return, Archimedes provides up to 10x APY on the user’s OUSD collateral deposit and provides an NFT representing the position. The user can then hold their NFT position, sell it on an NFT marketplace, or liquidate the position at any time to receive both their principal and any interest they have earned.

Lenders that are liquidity providers on the platform also benefit by delivering sustainable, market-leading returns from revenue sharing and issuance. By providing 3CRV tokens to the Archimedes 3CRV/lvUSD Curve pool in exchange for dynamic ARCH token issuance, other partner protocol tokens and a share of fees paid by borrowers (who are leverage takers), lenders can generate attractive returns on their digital assets as well.

Built by Archimedes and Origin Protocol, this two-way credit and lending market will increase capital efficiency, open up new income opportunities for investors, expand APY thanks to the activation of idle liquidity, and will be a fundamental component of the next wave of DeFi offerings.

Archimedes CEO Oz Rabinovitch said that OUSD’s thorough audits, the excellence of the engineering team, the project’s Archimedes alignment and the robustness of the OUSD protocol make it the ideal partner to pioneer new, revenue-generating opportunities in the burgeoning DeFi market.

Matt Liu, Origin Protocol co-founder, echoed these views by saying that Archimedes’ leverage engine, the platform’s various risk-return options, and the security and transparency provided by the Archimedes team make them a reliable and trustworthy investment and development partner for users and projects of all sizes.

This partnership promises to bring benefits to both lenders and borrowers across the DeFi space. Archimedes’ lending/borrowing market for AMMs will create sustainable, accessible and long-term DeFi investment opportunities for billions of people around the world, and it solves the sustainability problem of the pool reward and offers up to 10x leverage for yield-generating ones Stablecoins for Users. It also increases capital efficiency and eliminates hassles like pool hopping and portfolio management.

Origin Protocol, which has been a Web3 pioneer since its inception in 2017, is also on the fast track of development, building innovative products for the fastest growing sectors of the crypto industry. Partnering with Archimedes allows Origin to expand its offerings and build the battle-tested foundation needed to help the DeFi industry reach its next plateau.

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