Wrapped OUSD provides a non-rebasing version of OUSD that still earns yield. This makes it easier to use OUSD as a building block for other contracts and it may provide tax benefits in some jurisdictions.
Two flavors, up only
How wrapped OUSD works
When you wrap OUSD, you get back a fixed number of wOUSD tokens. This number will not go up - you will have the same number of wOUSD tokens tomorrow as you have today. However, the number of OUSD tokens that you can unwrap will go up over time.
For example, if you wrap 10,000 OUSD, you might receive 9,423 wOUSD. If you hold for a while, you will still have 9,423 wOUSD, but when you unwrap the wOUSD, you receive 11,500 OUSD.
Both OUSD and wOUSD earn at the same rate and can be transferred just like any other ERC-20 token. wOUSD is one of the first implementations of EIP-4626, which is an extension on ERC-20 that provides basic functionality for depositing and withdrawing tokens and reading balances on a tokenized vault. wOUSD was independently audited by Solidified in May 2022 and is ready for production use.
Unwrapping your OUSD does not require any approvals since you already hold the wOUSD in your wallet. There's also no minimum term or lock-up period. You can use the same form shown above and just click the arrow to flip it to unwrap mode. This form calls the redeem function to unwrap a spcific amount of wOUSD. You can also use Etherscan to call the withdraw function if you prefer to specify the amount of OUSD that you want to be taken out.