Benzinga - Origin Protocol (OGN) token holders have set forth a governance proposal to merge Origin DeFi Governance (OGV) with OGN. The protocol's lesser-known token, OGV, appreciated over 100% last month as the protocol's revenue and total value locked (TVL) continued its upward momentum.
OGV exists as the value accrual token for Origin's DeFi products. Its flagship product, Origin Ether, has $160M+ total value locked, accruing over $1 million in fees annually. At a market capitalization of $10 million, the team and its investors feel that acquiring OGV while it's undervalued will serve as a value-creating event.
Token mergers are becoming more common in crypto, with several notable projects paving the way for innovative realignments. The merger between Fetch.AI, Ocean Protocol, and SingularityNet is highly anticipated, with ChainGPT CEO Ilan Rakhmanov stating the merger will [set new standards](https://cointelegraph.com/news/singularity-net-fetch-ai-ocean-protocol-merger-drive-decentralized-ai-development-chaingpt-ceo) for the industry. Combining projects' resources and aligning their communities, token mergers are often seen as bullish events.
Similarly, the AEVO and Ribbon merger set a precedent for token mergers aimed at enhancing product offerings and market positioning. These precedents highlight the impact token mergers can have on protocols, showcasing their ability to foster greater utility and community alignment.
Origin’s DeFi products have seen notable breakthroughs, such as the invention of the yield-bearing stablecoin OUSD in 2020. Following this, the launch of OETH in May 2023 further cemented Origin’s status as a frontrunner in the realm of yield-bearing tokens. Origin Ether has more recently gotten into the restaking space, with $60M+ in deposits on EigenLayer and $40M+ deposits to its liquid restaking token PrimeStaked.
The proposed merger with OGN, contingent on the approval of both the ongoing OGN governance proposal and a subsequent OGV proposal, marks a strategic consolidation aimed at enhancing Origin's product suite and improving its focus.
OGN boasts an impressive roster of backers, including Pantera, Spartan Group, HackVC, 1kx, Reddit co-founder Alexis Ohanian, YouTube co-founder Steve Chen, and Y Combinator president Garry Tan. Origin Protocol claims that the merger is the first step in the protocol's renewed roadmap, which includes ambitious products in the realm of liquid staking and restaking.
The roadmap highlights plans for broadening Origin’s footprint across various Layer 2 networks, further bolstering its capacity to offer cutting-edge solutions in yield generation and liquid staking. Origin's expansion towards Layer 2 networks Arbitrum, Base, and Optimism is poised to unlock new possibilities for scalability and utility within the Origin ecosystem and the liquid staking landscape at large.
The OGN-OGV merger will set a benchmark for mergers and acquisitions within decentralized finance. Origin Protocol's merger, along with the project’s ambitious expansion plans, have generated notable excitement from its community and the broader crypto space. The full details of Origin's yield products are scheduled to be announced this Thursday, with teasers being shared last night in the OGN governance proposal.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.