The Ethereum network’s impressive growth has given rise to a thriving DeFi landscape. Specifically, the network’s transition to proof-of-stake has drawn the attention of institutional investors across the globe.
Ethereum staking allows anyone to participate in securing the network to earn rewards for their contribution by staking ETH, including institutions. Ethereum staking for institutional investors is a relatively low risk approach to earning yield on ETH, opening up opportunities for institutional exposure.
With more than $100 billion in ETH staked at present, institutional investors are rushing to take advantage of these opportunities. Let's delve into how institutions are gaining exposure to Ethereum staking, and the best institutional ETH staking providers to use.
Institutional staking on Ethereum has gained momentum in recent months. April’s Shanghai upgrade enabled ETH staking withdrawals for the first time, making staking far more attractive for asset managers.
Regulatory uncertainty has been another key factor deterring institutional investors. However, policymakers made major strides in this regard in 2025. With a Trump administration being favorable towards crypto, market conditions are looking ahead to a more clear regulatory landscape.
Ethereum’s proof-of-stake (PoS) consensus went live in 2022, replacing the existing proof-of-work (PoW) design for validating transactions.
Under proof of work, miners would compete to solve complex algorithms to confirm new transaction blocks. Miners would then receive ETH rewards for their efforts. This approach was highly exclusive and consumed massive amounts of energy.
In contrast, proof of stake is a far more lightweight design. Anyone can stake ETH to validator nodes, which confirm new blocks. As a result, network participation is far more inclusive. Proof of stake also reduced Ethereum’s energy consumption while providing the foundation for further scaling.
ETH staking rewards are a big attraction for institutions. Depending on the staking platforms they choose, participants can earn 3-5% APY for their efforts.
These rewards are derived from three main sources: transaction fees, block rewards, and slashing. A part of the network's transaction fees is given as rewards to stakers. Validators also earn block rewards for creating and checking new transaction blocks.
Slashing is a bit more complex. If validators break rules, they get "slashed" and lose some of their ETH. This lost ETH is then shared among the other stakers. However, slashing can be avoided by staking with a reputable protocol, such as Origin Ether.
Running validator nodes can give bigger rewards. This might be too hard for individuals because of the high amount of ETH needed. But it is a good option for institutional investment.
While custodial staking options exist, this choice adds additional risk for firms. Should an exchange fail, firms may risk losing their investments.
Institutional investors choosing a staking provider should instead use Metamask Institutional to connect with their exchanges’ custodians or staking service providers like those listed below. If you’re comfortable using multiple institutional ETH staking providers, then leveraging more than one of these protocols simultaneously is also an option.
Users retain full capital control with Origin Ether, which can be used across DeFi. Its integration with Fireblocks makes OETH accessible to institutions as well as retail investors. OETH deploys its ETH reserves to Ethereum’s beacon chain to generate yield for users. Yield is then distributed to OETH holders, saving stakers time and gas costs.
OETH’s strategies target higher yield than traditional staking and LSTs. As a result, stakers often enjoy outsized APYs above 4% even in a volatile market.
Discover how OETH can maximize your firm’s staking returns here. Or email [email protected] to set up a call about how your firm can use OETH.
Headquartered in the United States, Allnodes is a leading non-custodial staking service provider. Allnodes provides an easy gateway for both retail and institutional clients looking to run validator nodes.
The platform provides staking services for many digital assets. It has more than $2B in AUM. The site currently offers 2.7% APR for stakers, plus a 0.4% MEV boost.
Kiln is a versatile staking service provider with a focus on enterprise-grade security. Users looking for institutional ETH staking can stake their ETH to Kiln’s pool of more than 18,000 validators to earn 3 - 4% APRs.
For institutions seeking to supercharge their ETH staking yields, Super OETH offers an advanced solution with unmatched earning potential. As a next-generation liquid staking token (LST), Super OETH combines staking rewards with on-chain, auto-compounded incentives to deliver exceptional returns.
With a trailing 7-day APY above 5%, Super OETH stands out as a superior option for firms aiming to maximize yield without taking on excessive risk.
What sets Super OETH apart is its deep liquidity and robust peg to ETH, maintained through concentrated liquidity pools on Base’s Aerodrome platform. Super OETH also simplifies staking. It automatically compounds rewards directly into users’ wallets, saving significant time and gas fees.
Super OETH’s design is particularly well-suited for institutions that value security and transparency. The protocol is built on Origin Protocol’s battle-tested codebase and has undergone rigorous auditing to ensure reliability.
Learn more about how Super OETH can elevate your firm’s staking strategy or contact [email protected] to explore solutions tailored to ETH staking for institutions.
Institutions can stake ETH by running their own Ethereum validator nodes or by using a service provider. However, regulatory compliance is important to make sure staking follows all laws and rules, keeping investments safe. It may also be worth investing in a research service, such as Blockworks Research, before getting started.
Using Origin Ether, Super OETH, or other liquid staking tokens helps you earn higher yields on holding ETH than traditional methods of Ethereum staking for institutions.
Smart contracts help automate staking and ensure that everything runs smoothly and securely. They also add an extra layer of risk management.
One of the main selling points of digital assets is that they provide the ability for anyone with an internet connection to access financial services without centralized gatekeepers, hence the name decentralized finance (DeFi). DeFi services, such as payments, lending, borrowing, savings, trading, and market making have captured tens of billions of dollars in active usage, with staking and lending taking the lion’s share.
Let’s take a look at how investors use DeFi to borrow and lend, and how it compares to traditional lending with fiat currency.
The decentralized nature of crypto and DeFi loans means that by default, there is no entity that underwrites contracts, utilizes credit scores, or conducts credit checks towards borrowers. Under these conditions, unsecured or undercollateralized loans are simply untenable, as the risks of loan default is high, with little legal recourse.
DeFi lending platforms issue crypto backed loans, which requires borrowers to put up collateral, such as ETH, BTC, or other crypto assets. Loans are required to be overcollateralized, which means the loan-to-value (LTV) ratio is always under 100%. The lending platform will usually require the LTV ratio to be within 40-80%, due to the volatile nature of crypto assets. If the LTV crosses a certain threshold, the platform will liquidate the collateral to make sure lenders remain whole.
For example, using ETH as collateral on AAVE can only borrow up to 82.5% of their position. If the user deposits one ETH worth $3,900, they can borrow up to 3217.5 USDC. AAVE will liquidate the ETH collateral if the LTV ratio reaches 86% of the ETH value. So if ETH drops to $3,741, AAVE will sell the 1 ETH to cover the $3217.50 loan plus interest, take a liquidation fee, and return any leftover value to the borrower.
This robust liquidation system has allowed DeFi lending protocols to flourish since inception over 4 years ago, surviving the volatile and stressful nature of crypto markets. In a market with 50-90% drawdowns, DeFi has performed better than traditional banks that required bailouts during the Great Financial Crisis. As time passes, DeFi will slowly prove that it is more resilient and robust than traditional systems.
Note that there are platforms or entities that utilize crypto to issue unsecured or undercollateralized loans, but the level of adoption pales in comparison to secured loans, due to user aversion to elevated risks.
DeFi protocols and crypto lending platforms are essentially web applications coded with smart contracts. This means they are self-executing based on their programmed functions, accessible 24 hours a day. The most popular lending applications are AAVE, Compound, and Maker.
But how do crypto loans work? Basically, a user wanting to obtain a loan would head on to the applications’ websites, connect their crypto wallet, allow the smart contract to receive funds from the wallet, deposit the funds, specify a loan amount and take it out.
If you would like to benefit from the robust lending systems DeFi offers, you must deposit tokens onto the applications’ liquidity pools to start earning interest immediately. To do so, you’ll need an Ethereum wallet such as Metamask or Rainbow Wallet. You’ll also need to fund the wallet with crypto; the easiest way to do so is by sending cryptocurrency from a centralized exchange like Coinbase to your crypto wallet.
Once funded, visit the protocol’s website and enter the dapp. From there, you can choose which pool to deposit funds to and begin earning interest. Most DeFi pools offer variable APYs, so it’s important to keep track of the yield these staking pools offer.
Protocols such as AAVE and Compound offer 4-8% yields on USD, due to their blue-chip status and non-fixed deposit nature. Another application, Pendle Finance, allows users to earn interest rates between 8-25% on their crypto holdings, depending on the base asset used.
Newer lending applications may offer higher rates by allowing lenders to earn rewards, paid in the platform's governance tokens. This tactic is known as yield farming, but it is not recommended to beginners due to the risks involved. It is generally recommended that newcomers stick to market tested DeFi applications, as these apps are more battle-tested and their risks are easier to estimate.
If new users would still like to earn higher DeFi yields passively, knowing that due diligence and risk analysis is required, they can utilize yield aggregators such as OUSD.
OUSD is a yield-generating stablecoin, backed 1:1 by other stablecoins such as USDT, USDC, and DAI. OUSD generates yield by deploying these stablecoins into DeFi yield strategies curated by the protocols’ engineers. OUSD conducts risk analysis, audits strategies, and rebalances stablecoin allocations for OUSD holders, ensuring that they get the best yields on a risk-adjusted basis.
All strategies employed are market neutral, meaning that OUSD does not take on any speculative positions that may result in large drawdowns. Since OUSD only utilizes DeFi strategies, OUSD is 100% transparent and auditable 24/7 through the blockchain. In light of recent uncertainties in regards to centralized exchanges and lending platforms, OUSD holders can be sure the protocol is fully solvent and operational.
As always, users simply hold OUSD in their wallets with no staking or lock-ups required. Yield generated is automatically sent directly to holders’ wallets, saving users transaction fees from withdrawals or claiming rewards. OUSD was the first yield generating stablecoin in DeFi, helping users make the best risk-adjusted passive income and higher interest rates with their stablecoins.
You can buy Origin Dollar (OUSD) through decentralized exchanges such as Uniswap or centralized platforms such as Kucoin or Gate, or buy directly on the OUSD app via the Origin dapp. In order to buy OUSD through the app or a decentralized exchange, you’ll need a crypto wallet. For maximum security, it’s recommended to keep inactive funds on a hardware wallet.
Flash loans are uncollateralized loans whereby a user borrows and returns funds in the same transaction. Flash loans are usually utilized when a user wants to unwind or create a leveraged position. For example, if a user owes $8000 USDC from a $10000 ETH position, and does not have $8000 USDC somewhere else, he would have to slowly withdraw the ETH and sell it back for USDC to repay the loan.
Since the loan is required to be overcollateralized, the user cannot withdraw all $10000 worth of ETH at once to repay the loan. Flash loans allow the user to repay the USDC, sell the ETH, and return the flash loan all in one transaction.
Flash loans can also be used for arbitrage opportunities.
Getting a crypto loan through DeFi is well worth it for many investors. However, if you're strapped for funds, it's probably a better idea to get a traditional loan. DeFi loans require over-collateralization, meaning that you'll need to post more funds as collateral than what you're borrowing.
These types of loans are especially useful for many types of investors. Long-term investors may want to lend out their crypto to receive an APY on their tokens, while risk-tolerant investors may post collateral to leverage their crypto positions.
What are the benefits of getting a crypto loan through DeFi?
Getting a crypto loan through DeFi offers benefits like instant access, no credit checks, and transparent terms thanks to blockchain technology. These loans are typically over-collateralized, ensuring that borrowers maintain a higher level of security.
How does over-collateralization work in DeFi loans?
Over-collateralization in DeFi loans means that borrowers must provide collateral worth more than the loan amount to mitigate the risk of default. For instance, if you borrow $1,000 worth of USDC, you might need to deposit $1,500 worth of ETH to secure the loan, ensuring that lenders are protected against market volatility.
What is the difference between DeFi loans and traditional loans?
DeFi loans differ from traditional loans in that they require over-collateralization and are facilitated by smart contracts without credit checks. Traditional loans, on the other hand, typically involve credit assessments and can be under-collateralized, with loan terms dictated by centralized financial institutions.
EigenLayer is a protocol designed for the Ethereum network that introduces a concept called restaking.
Staking Ethereum allows you to participate in securing the network while earning rewards for your contribution. The EigenLayer ecosystem offers a way to take this a step further. By opting into the protocol’s smart contracts, you can put your staked Ethereum to additional use.
Restaking ETH lets builders use your staked assets to help secure decentralized products within Ethereum’s ecosystem. While this can raise the risk of losing ETH from slashing (a penalty when rules are broken), ETH restakers get higher rewards (APYs) to make up for it.
Basically, your staked Ethereum can do two jobs at once. It still helps keep the Ethereum network safe, but it also supports and strengthens other projects within the network. This makes your ETH work harder, boosting security while helping new projects grow, all managed by EigenLayer's smart contracts and operators.
EigenLayer has raised $50M led by Blockchain Capital during their Series A funding round, and $100M led by a16z as part of their Series B funding. Let’s take a look at what EigenLayer is and how it works.
In less than a year, EigenLayer has captured more than $8B in TVL – highlighting the massive enthusiasm ETH stakers have for restaking.
With liquid restaking, users receive a liquid restaking token (LRT) representing their staked position in return for restaking their assets. This means they're not just sitting on locked assets; they can trade or use these tokens, keeping their assets liquid and usable within DeFi. So, while the assets are locked in EigenLayer, users can use liquid restaking tokens to bolster liquidity, leveraging decentralized trust to ensure security and transparency.
This opens up new avenues for bootstrapping networks' security through staked ETH capital. It provides developers with a more secure, efficient, and dynamic environment to build and innovate validation services and more on ETH’s strong trust network.
In addition, restaking presents an attractive route for users to earn additional yields. By participating in restaking, users can earn higher returns to compensate for the increased risks associated with slashing penalties. The protocol currently offers users EigenLayer Points that contribute to users’ EIGEN allocation.
EigenLayer’s supported assets include Ether (ETH), OETH, and other leading liquid staking tokens (LSTs).
EigenLayer gives users points for restaking their Ethereum-based assets. You can earn these points by using restaking or LST protocols like Origin Ether, YieldNest and Ether.fi.
Origin Ether (OETH) was among the first tokens listed on EigenLayer, offering a route for users to deposit liquid staking tokens to EigenLayer for additional yield. By restaking OETH, users can earn more yield while holding a fully collateralized, audited ETH asset with boosted yield.
YieldNest's ynLSDe lets users boost their staking yield, earn EigenLayer points, and collect YieldNest Seeds by restaking Liquid Staking Tokens (LSTs). You can restake tokens from platforms like Lido, Frax, Mantle, and Origin Ether (OETH) without locking up your assets.
YieldNest has $100M+ in total value locked (TVL) and currently offers a 3.6% APR, plus extra rewards from EigenLayer Points and AVS baskets. Holding ynLSDe means your rewards grow over time, increasing the value of your assets.
Ether.fi is another option for restaking, where users stake ETH and receive eETH, a liquid restaking token. It’s designed to be simple, making it great for solo stakers or big investors. Ether.fi holds over $1.37B in TVL and offers 4% APY, along with extra rewards like EigenLayer points.
Using YieldNest's ynLSDe is an easy way to earn rewards for restaking ETH. You can combine your LST yield, EigenLayer Points, and YieldNest Seeds, with a 3.6% APY.
Here’s a quick overview of these rewards:
YieldNest offers 3.6% APY for staked assets, providing a steady reward from Ethereum staking. Staking helps keep the Ethereum network safe while earning income.
Restaking through YieldNest, Origin Ether, or Ether.fi also earns you EigenLayer Points, which reward your contribution to keeping Ethereum secure with extra benefits.
YieldNest Seeds are bonus rewards for holding ynLSDe. They grow as you restake, giving you even more yield on your Ethereum assets.
OETH (Origin Ether) is a great choice for restaking in DeFi. It’s a special type of staking token that gives higher rewards and more flexibility than other options. With OETH, you can earn rewards without locking up your ETH, so you still have access to your funds whenever you need them. This makes it easier to earn passive income while also being able to use or trade your assets in other ways.
OETH automatically increases your earnings and offers higher returns compared to other staking tokens, all without extra costs.
As of writing, OETH has a 7-day trailing APY of 3.4%.
OETH is also fully backed by ETH, meaning you can always redeem your OETH for ETH with no risk of losing ETH. It stays stable thanks to its partnerships with trusted platforms like Curve and Origin’s ARM. These platforms also give you more ways to earn by restaking OETH.
Plus, OETH is protected from security risks through special technology which keeps the Ethereum network safe while you earn rewards. Whether you're new to staking or have experience, OETH makes it simple to restake and earn more without losing access to your funds.
Restaking through EigenLayer using YieldNest is a great way to increase your staking rewards. You can earn ETH staking yield, EigenLayer Points, and YieldNest Seeds, all while keeping your assets liquid.
However, keep in mind that there are risks, including potential slashing if there’s a security issue with the network. You also need to remember your keys and withdrawal credentials. Make sure to understand these risks and how restaking fits into your overall strategy before diving in.
To get started, visit YieldNest or click here to start maximizing your returns with Origin Ether (OETH) today.
What does EigenLayer do?
EigenLayer is a protocol in the Ethereum ecosystem that enhances blockchain security by allowing users to restake their ETH. It helps secure new services and projects while offering additional rewards to stakers.
What is restaking on EigenLayer?
Restaking on EigenLayer lets users reuse their staked ETH to support new services, called Actively Validated Services (AVS). By doing this, stakers can earn extra rewards, with EigenLayer enabling secure participation.
Is EigenLayer safe for restaking Ethereum?
EigenLayer is considered the most safe restaking platform due to its high TVL and audits. Restaking on EigenLayer comes with some risks, such as exposing staked ETH to different rules, but it aims to maintain high security.
What are EigenLayer Points, and how can I earn them?
EigenLayer Points are rewards for users who participate in native restaking. You can earn them by restaking ETH through EigenLayer, helping boost blockchain security while earning extra rewards.
Every month, the Origin team publishes an update to our token holders and the broader community. We hope you enjoy our May 2024 edition.
Here’s a birds-eye view of Origin’s developments in May 2024.
Welcome to our May Token Holder Update! Last month was a pivotal time for Origin Protocol, with the OGN-OGV migration now live, Arbitrum expansion in full swing, and a brand new dapp that brings together all of Origin’s products.
In case you missed the announcements from our X account, here are some of May’s highlights to catch you up to speed:
Let’s delve into these developments and more below, giving you the full scoop on what went down at Origin in May.
One vision, one token: OGN and OGV have merged to unify Origin Protocol.
Following successful governance proposals from OGN and OGV stakers, the OGN-OGV token merger is now live. OGV and veOGV holders can now migrate their positions at a rate of 0.09137 OGN per OGV on Origin’s dapp.
Those who hold OGV have one year to migrate their tokens to xOGN or OGN using the migration portal. xOGN is the new value accrual and governance token for all of Origin’s products, and stakers will earn 100% of protocol revenue as well as OGN incentives funded by Origin’s treasury.
The OGN DAO has absorbed assets held by the OGV treasury, including over $400,000 of CVX and north of 900,000 OGN. As Origin’s new products mature, we expect the OGN DAO to vote on a fee switch to direct revenue to stakers. The Automated Redemption Manager will likely be the first of these new products to begin directing value to xOGN holders.
Origin’s brand new dapp has arrived alongside the OGN-OGV migration portal!
The team has spent the past few months overhauling the user experience for Origin’s products. Our brand new, all-in-one dapp offers users a single gateway to Origin’s products, making it easier than ever to explore Origin’s feature set.
The new dapp is home to OETH, the wOETH <> Arbitrum Bridge, OGN, and OUSD. Not only does this streamline the user experience for governance and staking, but we believe the new dapp will lead to better discoverability of our product suite.
The OGN-OGV migration portal is live on the dapp, allowing you to seamlessly migrate your OGV holdings and stakes. While the portal will remain open for a year, you can start staking your OGN for xOGN immediately and start accruing yield from a share of revenue generated by all of Origin’s products.
Check out the dapp now: https://originprotocol.eth.limo/
ARB rewards are being distributed to wOETH users on Arbitrum – learn how to get started today.
Last week, we announced our launch partners for wOETH on Arbitrum. To deepen its liquidity on the network, wOETH is now available on leading Arbitrum DEXs Ramses Exchange and Balancer (via Gyroscope). ARB incentives are being directed to liquidity providers on both platforms, so you can earn bonuses by providing liquidity to the wOETH/ETH pools. To learn more about the 185,000 ARB in incentives (~$210,000) that OETH received from the Arbitrum DAO, be sure to read our full blog announcement.
Wrapped OETH (wOETH) will be integrated on Silo Finance once sufficient liquidity is established on the aforementioned DEXs. Given Origin Ether’s unique use case and ARB incentives, we anticipate ample liquidity on these AMMs in the coming weeks. Following our integration with Silo Finance, over 10,000 ARB per week on average will be distributed to those who use the wOETH money market on the platform.
Origin Ether’s utility on Ethereum expanded in May with the integration of wOETH on Morpho. Morpho is a peer-to-peer lending platform with over $1.8 billion in TVL, and the integration of wrapped OETH made its debut with ample WETH liquidity for borrowing against it.
wOETH is now a collateral asset on the Re7 MetaMorpho vault, providing depositors diverse exposure to staking yield through a basket of LSTs and LRTs. Additionally, Re7 provides WETH liquidity to those who seek to borrow against their wOETH.
Users can now leverage their wOETH by depositing their tokens on Morpho, earning interest, token incentives, and staking rewards while unlocking liquidity to borrow against their positions for additional WETH.
Learn how OETH and OUSD work nonstop to deliver passive yield.
Origin Ether’s trailing 30-day APY ended May at 3.9%. While yield was temporarily reduced due to divestments of LST collateral, OETH still yielded 25% higher APY than stETH last month. Origin Ether’s transition to Beacon Chain staking using DVT is slated to finalize in June, with these new mechanics expected to contribute to heightened staking yield on OETH.
Origin Dollar’s trailing 30-day APY was 8.6% APY at the end of May. Origin Dollar’s DAI allocation currently earns yield through the MakerDAO DAI Savings Rate (DSR), while its USDC and USDT are lent on Morpho Aave to earn interest and a future allocation to MORPHO.
That’s all for May! With major product updates now finalized, we look forward to building out more features on our Automated Redemption Manager, expanding Origin Ether to Base, and continuing to grow our DeFi integrations across Ethereum and beyond.
Looking for more details on the updates highlighted in May’s Token Holder Update? Here are some of our favorite pieces of content from May:
If you haven’t already, be sure to join our Discord to be the first to know about new developments regarding OETH, OUSD, and our Automated Redemption Manager.
The brand new Origin dapp is live on Ethereum mainnet and Arbitrum!
Origin’s merger is finalized, and token holders can now convert their OGV at a rate of 0.09137 OGN per OGV using the migration portal. We’ve launched our brand new dapp alongside the token migration portal, jam-packed with features including OETH and OUSD integrations, new staking mechanics, and built-in governance.
Let’s take a look through what’s new and how you can get started using the new Origin dapp today.
The Origin Dapp is a complete overhaul from the siloed applications that previously existed for Origin Dollar, Origin Ether, and OGN. The new unified experience gives Origin’s products one home, making OGN staking and OTokens more accessible to our community.
The Origin dapp introduces user-requested features, significantly enhancing staking mechanics and the overall user experience. For your reference, we’ve broken down the primary components of the new Origin dapp below.
Upon entering Origin’s dapp, you’ll be greeted by a new homepage that showcases information on OETH, OUSD, and OGN. Each product has a separate card, highlighting 30-day trailing APYs, your holdings, earnings, and aggregate TVL.
The integration of OETH, OUSD, and OGN into the same dapp will lead to greater discoverability, helping foster a flywheel for Origin’s products.
In accordance with the OGN-OGV Merger Proposal, OGV and veOGV holders can now convert their positions to OGN or xOGN. The migration portal is now live on Origin’s dapp, and the portal will remain open until May 28, 2025.
During the 1 year migration window, users can convert OGV at a rate of 0.09137 OGN per OGV. The conversion ratio was calculated using OGV and OGN’s price on April 1, 2024 at 12AM UTC.
The new OGN staking page provides a birds-eye view of your OGN and xOGN holdings, claimable rewards, and voting power. OGN holders can chose to lock their OGN for between 1 month and 1 year, earning rewards based on the amount of OGN locked and the staking duration. This is far shorter than the previous OGV max lock time of four years.
The OGN staking page adds highly requested features to the staking experience, including the ability to add OGN balance and/or unclaimed rewards to your existing lockups which will result in large gas savings and far fewer lockups per user. Users will also have the option to exit staked positions early for a penalty. Penalties paid are returned to existing OGN stakers, boosting rewards for loyal participants.
xOGN holders can participate in governance through the OGN governance page. The right-hand sidebar displays your xOGN holdings and your relative voting power, as well as giving you the option to delegate your governance rights to other participants.
Proposals are listed in chronological order, so you can easily view what’s being voted on by xOGN holders. Each proposal shows current votes for and against, the proposal title, and a timeline for when voting closes.
The Origin Ether swap page lets you swap to and from OETH. Using the Origin dapp allows you to acquire OETH at the best available price. The swap form routes transactions between AMMs and direct minting, guaranteeing the best ETH-OETH conversion rate. Gas costs and fees are also considered, and you can preview the conversion rate before executing a swap.
Users with OETH on mainnet can bridge to wOETH on Arbitrum directly from Origin’s dapp. The bridge leverages Chainlink Cross Chain Interoperability Protocol (CCIP), the industry standard for secure multichain transfers.
The Arbitrum DAO recently granted Origin 185,000 ARB as part of its long-term incentives pilot program (LTIPP). OETH holders who bridge to Arbitrum can chose from a variety of dapps to earn ARB incentives on top of Origin Ether’s yield.
The Origin Dollar swap page has a similar design to OETH, displaying TVL, 30-day trailing yield, and other pertinent information at a glance. The swap form will find the best price for OUSD, optimizing deposits between AMMs and direct minting of Origin Dollar. Users can swap from USDC, USDT, and DAI to mint OUSD to begin earning yield directly to their wallet.
The launch of the new Origin dapp marks a pivotal moment in our journey towards making decentralized finance more accessible and user-friendly. The integration of layer 2 networks, new staking features, and improved governance mechanisms within the Origin dapp sets a new standard for Origin’s ecosystem.
Moving forward, we will continue to add to Origin’s product suite, starting with integrations for Origin’s Automated Redemption Manager (ARM). In the coming weeks, we will also add a portfolio page to the Origin dapp, allowing you to view your earnings from OETH, OUSD, and OGN in one place. We invite you to explore the dapp’s new features, participate in governance, and contribute to our community in Discord.
Try out our new dapp today at app.originprotocol.com.
In recent years, stablecoins have become a global phenomenon, growing from under $10 million at the start of 2017 to over $100 billion today. USD stablecoins act as a store of value for countries such as Argentina and Lebanon which suffer from currency crises, allowing easy peer-to-peer transfers, payments, cryptocurrency trading, and yield generation with the U.S dollar.
The use case of stablecoins have become compelling enough that governments around the world are actively discussing the potential issuance of their own central bank digital assets and digital currencies (CBDCs).
Stablecoins are tokens with values pegged to a separate asset that is seen as stable, such as fiat currencies or gold. The top stablecoins are pegged to the U.S Dollar, with household names such as USDC, USDT, Binance USD (BUSD), and DAI. For this reason, they’re sometimes called fiat-backed stablecoins.
This makes stablecoins distinct from assets like Ethereum and Bitcoin, which are not pegged to stable assets and can experience significant price volatility based on market demand and other factors.
While these stablecoins serve the same function, some stablecoin offerings are best for certain use cases, while others specialize in other areas. Let's expand on the different types of stablecoins and risks involved with each.
Collateralized stablecoins are tokens that are redeemable for the underlying assets which back them. USD coin (USDC) in particular is redeemable 1:1 for US Dollars, with their issuer Circle keeping a mixed reserve of cash and US Treasuries.
Uncollateralized or partially collateralized stablecoins may be backed by a mix of assets and algorithms. An example would be UST, which was redeemable for $1 worth of LUNA. However, there was no guarantee that there was constant demand or liquidity for LUNA. As panic ensued, the price of LUNA dropped too rapidly and UST was essentially redeemable for nothing of value.
Though this shows that fully or over collateralized stablecoins are much preferred over uncollateralized ones, examining the quality of collateral behind all of them is an additional step that cannot be skipped.
After the shock of Terra’s collapse in May 2022, investors looking for yield strategies using stablecoins have become more risk-averse in the short term. The change in landscape has made such investors flock back to the safer and proven stablecoins in the crypto markets, as we will highlight below.
USDC, which is issued by Circle, is backed by a mix of US Treasuries and cash to help maintain a stable value. Publishing monthly attestations on their reserves, Circle leads the pack on transparency among centralized stablecoins. Its ease of redemptions for USD on Coinbase also serves to bolster its popularity among the western audience.
Dai (DAI) is an over collateralized stablecoin backed by a mix of centralized stablecoins and other crypto assets, such as USDC and ETH. For example, a Dai vault could require a user to stake $1000 worth of ETH to mint $500 worth of Dai. If the value of the ETH collateral goes under $750, the protocol sells the ETH for DAI on the open market, giving the user back any leftover ETH, and takes a fee.
Being in operation for almost 5 years, DAI has shown resilience with their liquidation systems and smart contract security, making it the most trusted DeFi stablecoin with no close second. DAI currently has a stablecoin collateral ratio of >80% as of writing and is the largest DeFi stablecoin by market cap.
USDT, which is issued by Tether, is backed by a mix of investments, loans, bonds, cash and cash equivalents. Being the oldest and largest stablecoin by market capitalization, Tether (USDT) has survived multiple stressful market events, and proven itself over the years. In order to compete with USDC in terms of transparency, Tether has started publishing quarterly reports on their reserves.
OUSD is a yield-generating stablecoin collateralized by USDC, DAI and USDT. OUSD uses these collateral to deploy them into strategies that are analyzed, created and audited by the engineering team. This yield is directly accrued to OUSD holders, turning their wallet into a crypto savings account.
Using the safest stablecoins and blue-chip DeFi protocols, OUSD is the safest yield-bearing stablecoin on the market.
Liquity Dollar is a decentralized stablecoin made in response to the growing centralization of Dai's backing. Unlike Dai, which can be backed by USDC and other centralized assets, LUSD is solely backed by ether.
While LUSD is regarded as a safe stablecoin to use, it's slightly more volatile than other options due to its smaller market capitalization. It's not uncommon for LUSD to trade plus or minus three percent from its soft-peg of $1.
The benefit of DeFi stablecoins like OUSD and DAI are that operations or processes are on the blockchain and thus transparent by default. Whenever funds are moved, liquidations are happening, or strategies are executed, users can simply refer to the Ethereum blockchain to verify activity.
The best stablecoin interest rates are ones that fit the users’ risk profile. There is no free lunch in this world, especially for earning yield. Extra yield is generated either by taking on more risk, or intelligent active research and management.
Users who have high risk appetites can invest with algorithmic stablecoins such as USDD for yield ranging from 9% to 50%. Centralized lending platforms offer up to 10% on base yields for USDC, USDT and DAI, but note that most users remain skeptical after Celsius and Voyager’s bankruptcies.
With more than $10 billion dollars worth of value locked in blue-chip DeFi protocols, many users have shown preference for lower risk and transparency in spite of lower yields. Base yields for lending on AAVE and Compound range from 3% to 8% for USDC, DAI and USDT. By building strategies on top of blue-chip DeFi protocols, OUSD edges out a trailing 30 day average yield around 8.5%.
Crypto investors looking to make passive income must understand that due diligence must be done on stablecoin issuers and the platforms they use to earn interest on. Crypto exchanges and platforms that offer high crypto interest rates during bear markets should be scrutinized closely. Furthermore, the variable nature of interest rates and market conditions require users to keep track of their strategies and holdings.
Users who want to earn interest with another party actively managing their yields for them, while having the option of reviewing transparent operations and strategies can do so with OUSD. As compared to centralized platforms, which have shown opaque and negligent trading and lending activities, all of OUSD yield strategies are executed on-chain.
With backgrounds from Google, Paypal, Meta, Ethereum, etc, the engineering team actively creates, manages, monitors, and deploys strategies for OUSD holders. Daily interest is credited into OUSD holders’ wallet, with no lock-ups required. Users whose appetites fit low risk strategies and prefer to passively earn yield should be strongly recommended to utilize OUSD.
If that sounds like you, you can purchase OUSD through a DEX aggregator, the app, or crypto exchanges such as Kucoin and Gate.
Stablecoins have become a popular medium for earning yield in the crypto market, offering a variety of strategies that can be tailored to the different risk profiles of individual investors. High interest rate opportunities are abundant, with the appropriate risks attached, while safer strategies usually yield less exciting numbers.
The diverse number of stablecoins and strategies can put users into decision paralysis, as it is hard to filter strategies that would fit their risk profiles based on what different platforms offer. On the other hand, sophisticated investors are able to take advantage of the information asymmetry in stablecoin strategies for earning passive income and higher risk-adjusted returns.
To help you, we have outlined how certain strategies generate their yield and the best stablecoin interest rates below.
To generate yield, stablecoins can be used in lending services, market making, options selling, or even trading. Due to the volatile nature of discretionary trading strategies and options selling, many investors prefer not to invest in them despite offering high yields.
For example, Ribbon Finance is a popular options protocol, helping USDC depositors sell put options on ETH to earn options premiums. If the ETH price goes below the put option’s strike price, Ribbon depositors would have to pay the option buyers the difference in ETH price, incurring a loss.
Many stablecoin investors prefer generating yield through lending or market making, as they are not as exposed to speculative risks. However, the creditworthiness of lenders and the nature of market making is important. As recently exposed, Gemini Earn stablecoin stakers were lending to counter parties that went insolvent. Though they offered stablecoin yields of up to 8% APY, users ended up losing money instead.
As such, investors now prefer to use transparent DeFi applications that help earn interest by offering overcollateralized loans to borrowers, or stablecoin market making. Though these strategies often offer less than the 8-12% offered by centralized lending platforms and crypto exchanges, they come with much lower risks.
The highest stablecoin interest rates are currently provided by options selling protocols and centralized crypto lending platforms. Ribbon Finance currently projects up to 24.08% in USDC APY for their options selling vault, while centralized platforms like Nexo have programs that lets you earn up to 12% interest in Nexo tokens and stablecoin yield.
If users would like to avoid the risks that come with these strategies, they can opt to use DeFi protocols instead.
Aave is a decentralized lending and borrowing platform for crypto assets, allowing borrowers to provide assets as collateral to receive a line of credit. If someone needs extra capital, but does not want to sell their assets like ETH or BTC, they can deposit them into Aave and borrow popular stablecoins such as USD Coin (USDC), Binance USD (BUSD), and Tether (USDT).
Stablecoin lending yields around 6% to 8% APY on Aave, depending on the borrowing demand on the respective stablecoin.
Uniswap is a decentralized exchange that allows users to market make for digital assets, providing liquidity on the ETH-USDC pair for other users to trade, for example. Though Uniswap is flexible, there may be too many sophisticated market participants competing to generate yield on it, leaving less money for more novice users. There is no base interest rate on Uniswap, as it depends on the individual strategy and trading volumes by pool.
Most users prefer to use another decentralized exchange called Curve. Since Curve allows users to use their algorithm for market making, it is simple enough for most investors to use. Curve’s algorithm is especially useful for stable-asset pairs, like USDC and USDT, or ETH and stETH. Curve yields approximately 2.5% for providing liquidity on the USDC, USDT, and DAI trading pool.
The above list of protocols and interest rates are just a few of the many. Other protocols like Compound, Convex, Balancer, and Yearn also enable users to deposit stablecoins to earn yield, somewhat similar to the compound interest one can earn in traditional savings accounts and financial services products.
The open and permissionless nature of smart contracts and Web3 has led to a plethora of financial applications users can opt to use for their stablecoin deposits. Each protocol and strategy has different yields and risk, allowing users to customize their own stablecoin yield portfolio.
If you are looking for the best risk-adjusted stablecoin interest rates that avoids high risk strategies, you may opt to hold OUSD, which currently yields around 8% to 10% APY for users.
For investors looking to get the most out of their stablecoins, using advanced strategies can make a big difference. Beyond basic lending and market-making, there are more complex methods that can boost returns and manage risk.
This strategy involves borrowing stablecoins against your crypto assets. You can then reinvest the borrowed stablecoins into yield farming to compound your returns. It’s risky because if your collateral value drops, you might face liquidation. Platforms like Aave and Compound allow leveraged farming, letting you maximize your APY by managing your collateral and loans carefully.
This entails taking advantage of different interest rates across various DeFi platforms. For example, if Aave offers a higher APY for USDC than Compound, you can move your funds to Aave to get the better rate. Tools like DeFi Saver and InstaDapp can help automate this process, making sure your assets are always earning the highest yield. This strategy needs active monitoring but can greatly increase returns.
Many DeFi platforms reward users with governance tokens, which can be another way to earn. For example, staking on Curve not only gives you CRV rewards but also lets you participate in governance. By farming these tokens and voting on proposals, you can boost your overall yield.
These can add more ways to earn. Platforms like Synthetix let you trade synthetic assets, giving you exposure to different financial instruments without owning the actual assets. You can use these derivatives to hedge positions or bet on market movements, adding another layer to your yield farming.
To reduce risks, using insurance protocols can be very helpful. Platforms like Nexus Mutual and Cover Protocol offer protection against smart contract failures, hacks, and other issues. By insuring your positions, you can protect your capital and safely go for higher yields.
Some protocols have unique ways to increase yields. For example, Origin Dollar (OUSD) uses automated strategies to balance assets across multiple DeFi platforms, aiming for the best returns while keeping full liquidity. OUSD’s approach avoids speculative risks, ensuring steady and competitive yields. By using OUSD, you can benefit from advanced yield strategies without actively managing your investments.
By using these advanced strategies, you can boost your stablecoin yields while managing risks. Let’s take a closer look at how OUSD does exactly that.
OUSD is a stablecoin-collateralized, yield-generating stablecoin redeemable for other stablecoins such as USDC, USDT and DAI. OUSD utilizes its xOGN governance token to analyze and integrate potential DeFi strategies, allowing the protocol to deploy its stablecoin collateral to earn yield. The protocol utilizes rebalancing between strategies and liquidity pools, designed to maintain the highest yield possible at all times.
The proprietary strategies created by OUSD’s engineers are not only secure, but have highly competitive yields while all strategies remain transparent on Ethereum’s blockchain. Certain strategies can only be executed by OUSD, but others can be copied. The fact is, Ethereum network costs may be too high for many users, and they would prefer to use OUSD and avoid such fees.
OUSD does not require staking or lock-ups and can be simply held in a crypto wallet. Yield generated by OUSD will be sent directly to users’ wallets, like a personal crypto savings account. With OUSD’s radical transparency, users are confident holding it to generate passive income.
Using stablecoins can help users generate more yield than the traditional interest accounts available to them. Some users employ this as part of a broader yield farming strategy. Users from certain countries may suffer from hyperinflationary fiat currencies and use stablecoins to store value and generate yield.
With OUSD’s high yields and security, it is definitely worth it to earn interest on stablecoins.
OUSD can be purchased through the Origin Dapp or through centralized exchanges such as Kucoin or Gate. Users must hold OUSD in a crypto wallet to receive yield. If storing more than $1000 worth of crypto, it is generally recommended to use a hardware wallet like a Ledger.
We're excited to begin distribution of Origin Ether’s Arbitrum LTIPP grant to fuel our growth in the Arbitrum ecosystem. This grant opens up exciting yield farming opportunities for wOETH holders, allowing you to earn ARB rewards to maximize your yield.
There are 185,000 ARB up for grabs which is being distributed to wOETH users on Arbitrum over the next 12 weeks, so take advantage of this opportunity while it lasts.
The ARB incentives aim to grow wOETH usage on Arbitrum and fully integrate our LST across AMMs and money markets on the network. This involves getting rewards into the hands of DeFi yield farmers and users that want to borrow against wOETH in money markets and provide liquidity in decentralized exchanges we have partnered with.
We've deployed a wOETH/ETH pool on Balancer in partnership with Gyroscope. This pool distributes 3,968 ARB per week to liquidity providers, with additional incentives available through Hidden Hand or direct pool incentives.
You can get started by providing liquidity on the wOETH/ETH pool today.
We have teamed up with the Ramses team to grow the Ramses wOETH/ETH pool and will allocate 500 ARB per week to the pool. Additionally, the Ramses team is matching this on a 100% basis (1,000 ARB/week total). Ramses is also offering RAM incentives to the wOETH/ETH pool to increase the rewards for liquidity providers that deposit wOETH and ETH liquidity into the pool.
Earn ARB and RAM by providing liquidity on the wOETH/ETH Ramses Pool.
10,792 ARB per week is being allocated to the Silo Finance money market for users that want to borrow against their wOETH on the platform. We are allocating a large portion of ARB incentives to this market to ensure there is ample liquidity for users to borrow against as it requires users to deposit either ETH or USDC to kickstart the market.
Users that deposit USDC or ETH in the wOETH Silo money market or use wOETH as collateral for borrowing purposes are eligible for ARB incentives. Visit the Silo dapp to get started today.
To participate, you'll need to bridge your wOETH to Arbitrum. Origin uses Chainlink CCIP for cross chain transfers, which is accessible through the Origin dapp. Here’s how to bridge wOETH to Arbitrum:
For ETH holders:
For OETH holders:
Note that bridging can take up to 15 minutes. The interface will keep you updated on the status.
Starting in June, Arbitrum’s LTIPP incentives will be distributed over the next 12 weeks, giving OETH users the opportunity to earn extra incentives on leading Arbitrum protocols. As liquidity deepens on AMMs and money markets, new utility will be unlocked for users looking to leverage and trade their Origin Ether.
ARB incentives aren’t the only thing coming for OETH users. In the coming months, Origin Ether will continue to expand through Arbitrum’s ecosystem, as well as other layer 2 networks such as Base and Optimism. Stay tuned for upcoming announcements regarding Origin Ether’s debut on Base, where it will receive new yield products that take advantage of novel protocols on the network.
Jump in and start earning your share of ARB incentives!
How long will ARB incentives last?
Incentives from Arbitrum’s Long Term Incentives Pilot Program (LTIPP) will run for 12 weeks. Looking forward, Origin plans to apply for future ARB rewards to continue incentivizing wOETH usage on Arbitrum.
What protocols offer ARB incentives on wOETH?
Currently, wOETH holders on Arbitrum can earn ARB incentives by providing liquidity on Ramses, Gyroscope (Balancer), and lending/borrowing on Silo Finance.
How are ARB incentives distributed?
Incentives are allocated to users who use the wOETH Silo Money market and to liquidity providers who deposit wOETH and ETH in Balancer and Ramses pools. A total of 55,000 ARB will be granted to DEX liquidity and 130K ARB will be distributed on the wOETH Silo money market.
What to jump straight to the answer? The best place to earn interest on USDC is with Origin Dollar (OUSD), offering enhanced APYs through a basket of USDC, USDT, and DAI.
USD Coin (USDC) is a leading stablecoin that’s pegged to the US dollar. It was created by the Centre Consortium and is backed by cash and short-term US government bonds. Every USDC is always backed by an equivalent amount of cash or cash equivalent, and Circle, the company behind USDC, provides reports every month to prove this.
The money backing USDC is held by big financial institutions in the US, like BlackRock and BNY Mellon. This makes USDC like a “digital dollar.” Since USDC is a digital asset, it can be used on the internet for all kinds of transactions, just like fiat currency.
USDC makes sending money across the world super fast, helps protect against the ups and downs of other cryptocurrencies, and makes it easier for traditional online businesses (Web2) to connect with blockchain-based systems (Web3). A popular way to use USDC tokens is to earn interest through staking or USDC lending.
The word "staking" can mean different things in the crypto world. At first, staking meant putting your crypto assets, such as Ethereum or Solana, as collateral to help secure a blockchain network. People who staked their assets would help verify transactions on the network and get paid as a reward. Over time, people started using "staking" to also mean earning interest on any crypto asset, like stablecoins or altcoins.
There are different ways to earn interest when you stake USDC. Some methods include lending and borrowing, market making, or locking your USDC holdings on crypto exchanges that offer yield.
However, putting your USDC on centralized exchanges can be risky because the yield might not be sustainable. We've seen some platforms, like Celsius and Voyager, collapse because of this. Even big crypto market companies like Circle and Coinbase, which are centralized, carry some risks.
Because of the risks, many users have moved to decentralized finance (DeFi) spaces where things are more transparent and often safer. But that still begs one of the most frequently asked questions: where exactly should you stake USDC?
The first option for staking USDC is through Coinbase, which is tied to the Centre Consortium. This method is considered pretty safe for interest earning since you're staking directly with the issuers of USDC.
Other than centralized platforms, you can also stake USDC on DeFi protocols. In Web3, anyone can create a smart contract application, leading to many new ways to earn yield, like smart contract-based lending, decentralized exchanges, and yield aggregators.
However, you should make sure to only use verified smart contracts that have undergone audits. Unaudited contracts could have hidden backdoors that let the creator steal the deposited assets. Even if the contract wasn’t created to be harmful, bugs and security flaws could still be exploited by hackers.
Over time, certain DeFi protocols have proven to be safe through many live tests and market conditions. These protocols, known as DeFi blue-chips, have resisted hacking attempts despite holding billions of dollars in assets. Some examples of these trusted protocols include Curve, Aave, Convex, Uniswap, and Compound, which you can use to earn yield on USDC.
A list of DeFi USDC staking rates on respective platforms is expanded upon below, summarizing their attributes and methods of generating yield.
Origin Dollar (OUSD) earns boosted yield while using the same battle-tested applications that are listed below. Origin Dollar is fully collateralized, doesn’t take on any leverage, and is completely liquid at all times. The enhanced APY comes from optimizing stablecoins between the most lucrative DeFi strategies.
Aave is a platform that lets people lend and borrow crypto, and it was launched in January 2020 on Ethereum. As of writing, people who lend USDC on Aave earn a variable 8.91% interest rate. The APY users earn for lending on Aave varies with market demand.
Compound was the first platform to create the model used by many other lending protocols today. Although Aave has become more popular, Compound is still seen as one of the strongest lending platforms in DeFi, offering around 10.72% APR for USDC lenders. Additionally, users can earn rewards in COMP tokens, which is the platform’s native token.
Curve is a decentralized exchange that uses an automated market maker (AMM) to facilitate trading. Users can provide liquidity to the protocol and earn trading fees along with CRV rewards. However, you can't just deposit USDC; you need to provide liquidity for a trading pair, like the USDC, DAI, and USDT liquidity pools, which currently offer around 2 - 4% yield.
We have established that DeFi staking is preferred over staking on centralized platforms due to its transparency and sustainability. On the other hand, DeFi yields are highly variable and can change over time. Stakers would have to spend time and transaction fees to switch protocols and optimize yields for themselves.
Instead of doing all that work, users can simply acquire OUSD, which helps users passively generate the best DeFi yields.
OUSD is a yield-bearing stablecoin that employs various DeFi strategies to earn enhanced yields. These strategies are built on top of DeFi protocols and chosen by the OGN DAO. Integrated protocols include Aave, Morpho, Curve, and Convex.
Due to the efficiency of OUSD’s strategies, holders have been enjoying yields as high as 20% trailing 7-day APY. All of OUSD’s strategies and stablecoin reserves can be viewed on-chain, ensuring holders' assets are safe.
Furthermore, OUSD does not require staking or lock ups, sending yield directly into users’ wallets. Like a high interest savings account, users remain completely liquid while earning the best risk-adjusted yields via DeFi passively.
OUSD can be bought through exchanges such as Uniswap, Kucoin, or Gate, or directly on the Origin dapp. A Web3 wallet is required to hold OUSD, and if storing more than $1000 worth of assets, it is generally recommended to use a hardware wallet like a Ledger.
What are the safest platforms to stake USDC for earning interest?
The safest platforms to stake USDC are reputable DeFi protocols such as Aave, Compound, and Curve. They’re known for their robust security measures and transparent operations. OUSD also offers a passive income model by automatically rebalancing between DeFi strategies for optimal yield.
How does USDC staking compare to traditional banking savings accounts?
USDC staking offers significantly higher interest rates compared to traditional banking savings accounts thanks to staking, yield farming, and crypto lending. Platforms like Aave and Compound provide rates anywhere from 2% to 10% APR.
What are the risks involved in USDC staking and how can I mitigate them?
The primary risks in USDC staking include smart contract vulnerabilities and liquidity issues on certain platforms. To mitigate these risks, choose established DeFi protocols with a strong track record and continuous audits. Diversifying across several reliable platforms can also reduce potential losses.
