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Origin relaunches OUSD Stablecoin post $ 7 Million hack

Origin relaunches OUSD Stablecoin post $ 7 Million hack

Origin Protocol is relaunching its OUSD stablecoin after a DeFi attack in November that drained OUSD holders of the yield generating stablecoin out of $7 million. The three most prominent stablecoin backs OUSD in Ethereum include Tether’s USDT, Circle and Coinbase’s USDC, and MakerDAO’s DAI. Users can issue the OUSD by depositing any of these three stablecoins into Origin’s app. Origin Protocol also provides the alternative of purchasing the stablecoin on Uniswap DEX.

After the attack, the Origin team is now relaunching its stablecoin via researching and contemplating the attack. Via research, the team discovered various loopholes that resulted in the hacking attack. The origin protocol’s OUSD has gone through audits twice. The smart contract is currently undergoing an update and exploring insurance.

Intricate details about Origin’s OUSD Stablecoin

Origin declared its OUSD stablecoin where balance advanced when it resided without staking or additional accounts. Moreover, the OUSD stablecoin would grow into one’s wallet without the requirement for any further actions. Simultaneously, the auditing of the smart contract that powered the OUSD stablecoin did not happen. Two months later, the smart contract had approximately $7 million locked in it. In mid-November, the smart contract got controlled owing to a re-entrancy bug in the smart contract. Notably, this was the exact kind of attack during the infamous DAO attack.

Moreover, Origin also announced a plan for compensating consumers who lost funds in the attack. The first 1,000 OUSD lost for each user would be fully paid in OUSD. Following that, holders even get paid though with a little OUSD now and a lot of OGN, Origin’s governance token, later. There have been various tokens that acquire value in much the identical way as OUSD. For instance, Aave’s aUSDT and Curve’s yUSD presently boast returns of more than 10% annual yield. Additionally, Ampleforth’s AMPL functions somewhat differently but presents comparable passive advantages. 

Conclusively, with the relaunch, the team unveiled a new post-mortem on the attack, where they discovered several places where their security had failed. OUSD contracts have now been via two audits, a better update system is in place, and they are exploring insurance. 

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