Announcing OUSD Staking Rewards on SnowSwap
By: Coleman Maher
Tags: Finance, Blockchain, Money, Ethereum, Product

Important Update (Oct 29th 5PM UTC) : Due to unforeseen technical difficulties, the OUSD staking pool launch on SnowSwap will be delayed by up to 4 days (~November 3rd UTC). We are currently working closely with the SnowSwap team on a solution. Please stay tuned & check our Twitter page for the latest update.

We are excited to announce an OUSD staking pool on SnowSwap, a new AMM exchange for yield-aggregating stablecoins. This is another step forward for OUSD composability and DeFi integration. OUSD holders can start earning $SNOW rewards on top of the extremely competitive yields OUSD already offers. This will incentivize an increase in the total circulating supply of OUSD and lead to an eventual increase in liquidity for OUSD. OUSD will later be added as a swappable asset on SnowSwap’s stablecoin pools that can be swapped with other yield-aggregating stablecoins.

$SNOW is the governance token of SnowSwap and is being distributed in a fair launch to LPs and in an incentivized liquidity mining campaign. Only 10% of $SNOW will be distributed to the team and 80% will be distributed to LPs. OUSD stakers on SnowSwap will receive 4% of the liquidity mining rewards, paid out daily in the form of $SNOW. This campaign will start on October 29th, 3PM UTC and feature a 3 month bonus program where overall daily pool rewards start at 2000 $SNOW (80 $SNOW for the OUSD pool) and gradually decrease over time until reaching 200 $SNOW total (8 $SNOW for the OUSD pool). This daily reward of 200 $SNOW will last until Oct 13th, 2021. Refer to SnowSwap’s official announcement page for more information.

SnowSwap is live and currently offers yield farmers a way to quickly swap between different Yearn’s yTokens. Previously, if a naive yield farmer wanted to switch between Yearn’s yUSDT vault to the yUSD vault, they would have to (1) pay an exit fee to withdraw their USDT from the vault before (2) depositing USDT into Curve’s yPool to receive yCRV LP tokens, and then (3) deposit these yCRV LP tokens into the yUSD vault. Each step requires potentially high gas fees and users must pay high exit fees, which can sometimes be the equivalent of months of earned yield. There are ways to reduce steps and gas fees, such as enabling wrapped token deposits or utilizing zap contracts, but they require specialized knowledge of DeFi. With SnowSwap, users can just trade between yUSDT and yUSD in one step for minimal gas fees and no exit fees in an easy to use interface.

SnowSwap UI

In the future, OUSD will be added to SnowSwap, and users will be able to trade yUSD or other yTokens for OUSD and experience the benefits of OUSD’s unique advantages over other yield-aggregating products and other stablecoins. OUSD is designed to be a true stablecoin, with its price always targeted at $1. Many yield-aggregating products or “stablecoins” have dynamic values and are not priced at $1 (for example yUSD is currently ~$1.16) because these tokens are supposed to accrue value over time. This means users have to deal with calculations and exchange rates if they want to use those tokens as money or for transactions. OUSD is different because instead of the value of each token going up, OUSD features an elastic supply and rebases positively. This means that OUSD holders receive more OUSD every day just for holding OUSD and each OUSD remains $1. You can read more about why OUSD offers a better user experience than other stablecoins and yield farming products here.

We will continue to work towards adding OUSD to as many platforms as possible. Our vision is to make OUSD ubiquitous in the crypto ecosystem and eventually take OUSD mainstream. We see incredibly strong demand for an easy to use and transfer yield generating stablecoin. Anyone who has ever seen the interest rates offered by their bank, tried to send money internationally, or seen their savings eaten away by inflation will understand that it is only a matter of time before crypto and DeFi goes mainstream. We are proud to be at the forefront of this mission.