[RFC-35] Swap $1M OUSD for OETH

Main Objective

The objective of this RFC is to ultimately propose PopcornDAO to generate yield on its treasury by using Origin Ether (OETH). PopcornDAO will convert $1M equivalent of its OUSD into OETH using the OETH dApp from within the Gnosis platform.

Origin launched in 2017, and in 2023 released OETH. OETH is a stable currency that is backed 1:1 by Ether and liquid staking derivatives like stETH, rETH, and sfrxETH. As a result, 1 OETH should always be very close to 1 ETH in value.

Smart contract risk of the yield strategies - Origin is only using platforms for yield generation that have a proven track record, have been audited, have billions in TVL, maintain a bug bounty program, and provide over-collateralized loans. Over-collateralization in itself, combined with liquidations, provides a reasonable level of security for lenders.

Smart contract risk of OETH - Security reviews are prioritized over new feature development, with regular audits being done, and multiple engineers are required to review each code change with a detailed checklist. There are timelocks before protocol upgrades are launched, and deep dives into the exploits of other protocols are constantly being done to make sure the same exploits don’t exist on Origin contracts. Security is extremely important to the Origin team. 7+ audits have been done since 2020, all of which can be seen on Audits - OETH, and OpenZeppelin is now on retainer.

Contracts/Technical Requirements

Very little technical work is necessary to execute this proposal, practically none! The OETH dApp is available within the Gnosis app catalog. PopcornDAO will convert the OUSD to OETH using the OETH dApp within Gnosis, and then will “Opt in” to yield generation by clicking the Opt in button within Gnosis or by calling the rebaseOptIn() function.

What would be the strategy to execute the OETH purchase? Smaller trades over a period of time (dollar cost averaging)? A single large trade feels risky given market volatility

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We would swap OUSD for ETH, and then swap ETH for OETH, which is a 1:1 to swap. Market volatility is not really a concern in terms of the trade here.