Origin Protocol announces major updates: OGN and OGV token merger, buyback and destruction mechanism, and universal LST for EVM chain

Origin Protocol has submitted a governance proposal to share its updated roadmap and goal of integrating the OGN and OGV tokens. OGN holders can vote on the proposal before it progresses. If the proposal is approved, an OGV governance proposal will then be put to a vote.

In 2023, the Origin team has prepared the following roadmap as the inventor of yield-based stablecoins and creators of LST with enhanced yields in 2019: They plan to launch Origin Ether, a cryptocurrency with enhanced yield capabilities digital assets) and are ready.

OGN merges with OGV

The core team officially submitted a decentralized governance proposal for OGN to acquire OGV. If the proposal is approved, the value of all current and future products of Origin will be accumulated 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 and Liquidity: Investors will benefit from the depth and accessibility of OGN liquidity. OGN is listed on Coinbase, Binance, and many other exchanges.

The Origin community and team will promote a token to promote its value accumulation and related products. OGN currently has 40,000 on-chain token holders.

OGV is undervalued: Due to lack of liquidity and easy availability, OGV is still undervalued based on its revenue and TVL, despite having over $200 million in total TVL and $1.5 million in annual revenue .

Both the OGN and OGV communities accept the merger proposal, and the entire Origin ecosystem will revolve around OGN. OGN will have the current 9-digit TVL, and will have more resources to increase Origin's total TVL to billions.

OGV DAO’s treasury will also be migrated to the OGN community. OGV holders will have the opportunity to migrate their holdings to OGN, which will benefit from deep liquidity and equal value for more token holders.

OGN will adopt veToken governance and economic attributes similar to OGV/veOGV and other DeFi tokens. This model has proven effective in maximizing protocol security and rewarding long-term supporters.

At the same time, Origin also proposed to introduce new token economic mechanisms to 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, more details of these mechanisms will be announced in a future governance proposal.

LST Yield Derivatives

Origin Ether (OETH) is currently expanding to various L2s, starting with Arbitrum, which went online in April. The team’s next goals are Optimism and Base. These L2s will allow Origin to expand to new audiences and increase OETH’s utility through new product integrations and LST revenue derivatives.

In the next few months, Origin will launch OETH derivatives on different L2s, allowing users to earn enhanced returns 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 the initial building block but will securely provide 2-3x higher returns than just holding LST. Given the huge gains, the LST yield derivative has the potential to generate strong growth for Origin’s fees, which will be used to buy back and burn OGN.

The summary is as follows:

lOrigin will expand to Arbitrum this month, followed by Base and Optimism.

lLST income derivatives will be launched on multiple chains, providing 2-3 times LST income.

lThrough the repurchase and destruction mechanism, fees will be accumulated in OGN.

Universal LST for EVM chains

Leveraging 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 its first foothold in this expansion strategy, with a target launch date of the second quarter of 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 strong peg capabilities and can be applied to any type of redeemable asset. In addition to pegged stability, AMO offers at least 2x capital efficiency on liquidity pools, enabling LSTs to mine incentives to enhance returns.

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