Origin Relaunching Its OUSD Stablecoin Following $7 Million DeFi Attack

Jafrin  |  Jan 6, 2021

Origin Protocol is relaunching its OUSD stablecoin following a November hacking attack that drained holders of the yield generating stablecoin out of $7 million. OUSD is backed by the three biggest stablecoin in Ethereum that includes Tether’s USDT, Circle and Coinbase’s USDC, and MakerDAO’s DAI. Users can mint the OUSD by depositing any of these three stablecoins into Origin’s app. There is even the option of buying the stablecoin on Uniswap DEX.

Origin Relaunching Its OUSD Stablecoin

The Origin team is now relaunching its stablecoin through analyzing and researching the previous attack. The team found several loopholes that resulted in the hacking attack.

The OUSD contract has gone through two audits already. The smart contract is now going through an update and currently exploring insurance.

In a statement, Josh Fraser, CEO of Origin stated:

“We remain committed to our vision of a superior stablecoin for the Ethereum network. Despite the setback from the hack, we are returning with renewed confidence that we are building something important, that people really want.”

Origin Lost $7 Million in DeFi Attack

In September, Origin announced its OUSD stablecoin where balance grows wherever it resided without the need of staking or additional accounts. To put it simply, the OUSD stablecoin would grow into one’s wallet without the need for any additional actions.

Meanwhile, the smart contract that powered the OUSD stablecoin was not yet audited. Two months later, the smart contract had around $7 million locked in it. In mid-November, the smart contract got exploited due to a re-entrancy bug in the smart contract. Notably, this was the same kind of attack during the infamous DAO attack.

A month later, the Origin team took upon to release a compensation plan for the users who lost their funds in the hacking attack. For instance, the first 1,000 OUSD lost for each user was to be fully compensated in OUSD. Holders of the OUSD stablecoin is to be compensated with the native OUSD stablecoin for now with later on its governance token OGN.

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