Archimedes is an established and comprehensively audited DeFi lending and borrowing platform. Uniquely, the application aims to deliver real long-term yields with up to 10x collateral-backed leverage for investors. The platform has partnered with Origin Protocol to integrate Origin Dollar (OUSD), DeFi’s first yield-bearing stablecoin. While OUSD already earns higher yield than stablecoin lending on Aave, Compound, and Curve, it now has the ability to be leveraged through Archimedes Finance to further boost yields.
As two of DeFi’s most recognized and respected innovators, the partnership between Archimedes and Origin allows users to simultaneously benefit from Origin Dollar’s yield and Archimedes leverage functions. Origin’s robust performance in the ongoing crypto winter and the reliability of OUSD – Origin’s USD-pegged yield-bearing stablecoin – were both instrumental factors in helping the integration move forward.
OUSD’s proven peg mechanism has consistently delivered for users. Since the stablecoin is backed 1:1 with USDC, Dai, and USDT, OUSD holds its peg in a similar manner to the leading stablecoins. Origin’s values of decentralization and self-custody also align closely with those of the Archimedes team, particularly since 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 backed 1:1 by a pool of USDC, USDT and DAI. Anyone holding OUSD earns compounding yields that are generated by blue-chip lending protocols and decentralized exchanges. OUSD employs thoroughly vetted and audited smart contracts to move stablecoin assets into and out of liquidity pools across different money markets such as Aave, Compound, and Curve. In doing so, OUSD can guarantee the best possible yield out of the many available options in the market for its holders.
If 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 leverage with ARCH, which is Archimedes’ governance and utility token. The auction is designed to determine the fair market price for leverage. In return, Archimedes provides up to 10 times APY on the user’s OUSD collateral deposit and provides an NFT that represents the position. The user can then hold their NFT position, sell it on an NFT marketplace, or unwind the position at any time to collect both their principal as well as any interest that they earned.
Lenders, who are liquidity providers on the platform, also benefit via earning a sustainable, top-of-market yield from revenue share and emissions. By providing 3CRV tokens to the Archimedes 3CRV/lvUSD Curve pool in exchange for ARCH token dynamic emissions, other partnered protocol tokens, and a share of the fees paid by borrowers (who are leverage takers), lenders can earn handsome returns on their digital assets as well.
This two-way lending and borrowing market built by Archimedes and Origin Protocol increases capital efficiency, opens new income-generating opportunities for investors, expands APY thanks by activating idle liquidity, and will be a foundational component of the next wave of DeFi offerings.
Oz Rabinovitch, the CEO of Archimedes, said that OUSD’s thorough audits, the excellence of the engineering team, the alignment the project has with Archimedes, and the robustness of the OUSD protocol make it the ideal partner for pushing the envelope when it comes to new, yield-generating opportunities in the burgeoning DeFi market.
Matt Liu, a Co-Founder at Origin Protocol, echoed these sentiments by saying that the Archimedes leverage engine, the platform’s different risk/return options, and the security and transparency provided by the Archimedes team make it a reliable and trustworthy investment and development partner for users and projects of all sizes.
This partnership promises to benefit both lenders as well as borrowers across the DeFi sphere. 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 pool reward sustainability issue and offers up to 10x leverage for yield-generating stablecoins for users. It also increases capital efficiency while doing away with issues such as pool hopping and portfolio management.
Origin Protocol, which has been a Web3 pioneer since it was founded in 2017, is also on the development fast track and builds innovative products for the fastest-growing verticals of the crypto industry. By partnering with Archimedes, Origin can enhance its offerings and create the battle-tested foundation needed to help the DeFi industry reach its next plateau.