Minting & Burning

Users deposit OP mainnet USDC into the protocol. That USDC is sent into the USDC lending pool on Aave, and in return, the user receives obUSD at a 1:1 ratio.

• Mint: USDC → obUSD

• Burn: obUSD → USDC

Since obUSD is an ERC-20 token, users can trade, spend, or use it in any Optimism-based DeFi protocol.

Example: Alice wants to support the Optimism Collective and earn obUSD. She deposits 1,000 USDC through the obUSD minting portal. That USDC is routed to Aave, and Alice receives 1,000 obUSD in her wallet. A few weeks later, she decides to convert back. She burns 1,000 obUSD and receives her 1,000 USDC back from the protocol.