Research Summary
The report discusses the potential of $OGV, a token in the Origin DeFi ecosystem, which also includes OETH and OUSD. It highlights the recent updates and improvements in tokenomics that have led to a significant increase in $OGV’s value. The report also emphasizes the high total value locked (TVL) in the ecosystem and the potential for further growth.
Key Takeaways
Overview of the Origin DeFi Ecosystem
- Introduction to Origin DeFi: Origin DeFi is a rapidly growing vertical in the crypto space, with products designed to supercharge yields and accelerate the NFT ecosystem. The ecosystem includes three tokens: OGV, OETH, and OUSD.
- Role of OGV: OGV is Origin’s value accrual and governance token for OUSD and OETH. It has seen its value increase substantially in 2023 due to improvements in tokenomics.
- Introduction to OETH and OUSD: OETH, launched in May 2023, uses ETH and liquid staking tokens as collateral. OUSD, launched in September 2020, is a stablecoin pegged to the US dollar. Both have been successful, with OUSD having hundreds of millions in circulating supply and OETH tripling Origin’s TVL.
Value Accrual to OGV
- Revenue Distribution: Significant revenue is distributed to OGV stakers, leading to value accrual relative to its fundamentals. This growth could provide positive expected value for OGV holders over time.
- Performance Fees: OGV accrues value primarily through performance fees generated by OUSD and OETH. In October 2023, OGV stakers passed a proposal to use 10% of fees earned by OETH to buy back and distribute OGV tokens to stakers.
OGV’s Market Position
- Market Capitalization: Despite having over $90m in TVL between OUSD and OETH, OGV’s market cap is relatively modest at $4 million, suggesting it may be undervalued compared to similar protocols.
- Future Potential: With the recent updates and improvements in tokenomics, OGV is well-positioned for more upside potential.
Origin’s Product Suite
- Product Diversification: With OUSD, OETH, and OGV, Origin Protocol is building a diverse yet interconnected DeFi product suite for stablecoin and ETH yields.
- Community Focus: The launch of OGV and the routing of fees back into the DAO make the ecosystem self-sustaining and community-focused.
OGV’s Undervalued Status
- Increased Value for Stakers: OGV stakers recently received a boost through a new proposal that passed to buy back OGV tokens using fees earned from OETH.
- Reduced Sell Pressure: OGV rewards used to incentivize CRV voting power have been reduced now that OETH is more established, easing downward price pressure.
- High Protocol Revenue: Origin DAO is earning substantially higher fees from the growth of OETH, which now has over $15m in TVL. 10% of yields from OETH will fund OGV buybacks, providing continuous support.
Actionable Insights
- Investigate the Potential of OGV: Given its high revenue and TVL, coupled with a relatively low market cap, OGV presents a potential opportunity for value appreciation if its fundamentals receive wider recognition.
- Consider the Impact of Tokenomics Improvements: The recent updates and improvements in tokenomics have led to a significant increase in OGV’s value. This trend could continue, providing positive expected value for OGV holders over time.
- Assess the Role of Governance: As a governance token, OGV allows holders to influence the strategies and parameters of OUSD and OETH. This role could become increasingly important as the Origin DeFi ecosystem continues to grow.
