In addition to collecting interest from lending and fees from market making, the protocol automatically claims and converts the bonus incentives that are being distributed by many of the DeFi protocols. For example, Compound gives away COMP tokens and Curve gives away CRV tokens. These bonus rewards are regularly converted into stablecoins, deployed in the market, and distributed to OUSD holders in the form of additional yield.
Today, rewards are a significant factor for yield farmers as they represent a large percentage of their returns. We anticipate that the OUSD protocol will be upgraded over time to take advantage of the most attractive yields available across the DeFi landscape. The protocol will factor in the market value of the various rewards being offered when deciding how to best allocate resources.