Origin Ether is expanding its integrations on Ethereum and Arbitrum. Learn how to earn over 50% APR using OETH in DeFi on our DeFi Opportunities Page!
Leveraged staking is a way to earn more money from your crypto investments. It involves borrowing extra funds to increase the amount you can stake, which can boost your returns.
Below, we'll explore how leveraged staking works, how you can use liquid staking tokens (LSTs) to enhance your earnings, and the best platforms for leveraging your staking efforts.
We'll also look at the potential risks and how to manage them.
Before we go any deeper, let’s make sure we’re clear on how staking works, with a focus on liquid staking in particular.
Staking is a process where you lock up your crypto tokens to help support the network they belong to. In return, you earn rewards; a bit like putting money in a savings account and earning an annual percentage yield (APY) or interest. Staking helps secure a proof of stake (PoS) network, and in return users receive passive income on their crypto holdings.
Different crypto staking platforms offer different ways to stake, but one of the most useful methods is liquid staking. Traditional staking requires you to lock up your tokens, meaning you can’t use them until you initiate a withdrawal. However, liquid staking offers more flexibility.
When you stake your tokens using liquid staking protocols, you receive special tokens called Liquid Staking Tokens (LSTs) in return. These LSTs represent your staked tokens. They can be traded or used in other DeFi activities while still earning staking rewards.
For example, if you stake ETH using a liquid staking service, you might receive a token like OETH in return. This OETH can be used just like regular ETH. You can trade it, lend it, or use it in other DeFi protocols. Meanwhile, your original ETH is still earning staking rewards. This flexibility makes liquid staking a popular choice among DeFi users.
Lending is another way to earn rewards in DeFi. It involves providing your tokens as collateral, which is used to borrow against if you so chose. In return, you earn rewards from the borrow rates generated by the pool. Liquid staking tokens (LSTs) can also be used in these pools to earn additional rewards.
For example, Origin Ether (OETH) can be used in the Morpho pool. Here’s how it works: you stake your ETH and get OETH in return. You can then use this OETH in the Morpho market to earn extra yield from lending. This is a great way to maximize your returns.
Lending with LSTs offers an attractive way to earn passive income. However, it’s essential to understand the risks involved, such as changes in token prices and potential losses. For example, if the price of your staked token drops because of market volatility, the value of your LSTs will also drop.
Leveraged staking takes the concept of staking and adds a twist to boost your returns. It involves borrowing more crypto to increase the amount you can stake.
This strategy can amplify your earnings, but it also comes with more risks. Let’s break down how leveraged staking works and how you can use it to maximize your returns.
Here’s a step-by-step example of how leveraged staking works:
This looping strategy can significantly boost your returns because you are continually increasing the amount you stake. Each loop lets you borrow more, mint more LSTs, and earn more rewards.
Let’s consider an example using Origin Ether (OETH):
Several platforms offer leveraged staking. Two popular ones are Summer.fi and Contango. Let’s take a closer look at each of them.
Summer.fi is a platform that offers leveraged staking options. It allows users to borrow ETH and use it to mint LSTs. These LSTs can then be staked to earn rewards.
Summer.fi makes it easy to loop your staking, so you can keep increasing your ETH yield. The platform is known for its user-friendly interface and robust security features, making it a good choice for those new to leveraged staking.
Contango is another platform that supports leveraged staking. It provides tools to borrow ETH, mint LSTs, and stake them.
Contango is known for its flexibility and advanced features, which allow users to optimize their staking strategies. The platform offers competitive interest rates and a wide range of staking options, making it an excellent choice for experienced DeFi users.
Origin Ether (OETH) is an ideal choice for leveraged staking thanks to its versatile design and robust peg-keeping.
You can use OETH on either Summer.fi or Contango, or both. Here’s how:
OETH is a great choice for leveraged staking because of its strong peg to ETH. The Automated Market Operations (AMO) strategy used by OETH ensures that its value remains closely tied to ETH. This stability makes OETH a reliable option for investors looking to maximize their returns.
By using OETH, you can take advantage of advanced DeFi strategies to boost your earnings. The AMO strategy constantly adjusts the allocation of assets in the pool to optimize returns. This means you get the best possible returns with reduced risk.
While leveraged staking can offer high returns, it also comes with risks. One of the main risks is depegging. This happens when the value of the staked tokens moves away from the value of the underlying asset, causing losses. For example, if an LST were to drop significantly below the price of ETH, you may face liquidation risk.
OETH helps mitigate these risks with its stable ETH peg. The AMO strategy keeps the value of OETH closely tied to ETH, reducing the chances of depegging.
However, it’s essential to be aware of other risks, such as changes in market conditions and potential losses from borrowing.
Here are some tips to manage the risks of leveraged staking:
What is leveraged staking in DeFi?
Leveraged staking in DeFi allows users to stake their crypto by borrowing extra funds to increase their staking amount, thereby boosting their returns. This strategy involves depositing LST collateral, borrowing ETH, minting liquid staking tokens, and repeating the process to maximize rewards.
How does Origin Ether (OETH) help in leveraged staking?
Origin Ether (OETH) helps users to stake by providing a stable and versatile token that can be used for chain staking and liquidity mining. OETH’s strong peg to ETH and automatic reward distribution make it an ideal choice for maximizing returns in leveraged staking.
What are the risks of leveraged staking?
The main risks of leveraged staking include depegging and market fluctuations, which can affect the value of your staked tokens. However, using OETH can help mitigate these risks through robust AMO strategies and reliable peg-keeping, ensuring safer and more stable returns. Custodial staking is another option.
DeFi, or decentralized finance, is changing how we use money by removing the need for banks or other middlemen. One exciting part of DeFi is staking, where one stakes assets (or locks up crypto tokens) to earn rewards.
Restaking takes this a step further. It means using the tokens you’ve already staked to make even more rewards. This can help you grow your crypto faster.
Today, the DeFi world is buzzing with new ways to make the most of your tokens. One of these ways is called liquid restaking. This is a method that makes it easier and more flexible for you to restake your tokens.
But why is liquid restaking important? And how does it actually work? Let’s take a look below.
Restaking is important because it lets you earn more rewards without needing more capital. Think of it like earning interest on assets that are already earning yield in a savings account. This can help you grow your crypto much faster.
Restaking also helps keep decentralized networks secure. When you stake your tokens, you help validate transactions and keep the network running smoothly. By restaking, you continue to support the network and get rewarded for it.
Liquid restaking makes this process even better. It allows you to restake your tokens while still being able to use them. This flexibility makes it easier to manage your investments and take advantage of new opportunities in the DeFi world.
Liquid restaking works by allowing you to stake and restake your tokens without locking them up completely.
Normally, when you stake your tokens, you have to lock them up for a certain period. This means you can’t use them for anything else during that time. Liquid restaking changes this by giving you special tokens that represent your staked assets.
Here’s how it works:
Here’s another example to show you how the process differs from typical Ethereum staking:
Let’s say you stake ETH and get a liquid token like stETH. You can use stETH in other DeFi projects while still earning rewards from your original ETH. You can then restake stETH to earn even more rewards on that restaked ETH, maximizing your returns within the Ethereum ecosystem.
There are several platforms where you can practice liquid restaking. Here are some of the best ones:
Ether.fi is a popular platform for liquid restaking. It allows you to restake your ETH and receive liquid tokens in return. These tokens can be used in other DeFi projects to earn additional rewards.
Ether.fi is known for its user-friendly interface and strong security features, making it a great choice for both beginners and experienced users.
YieldNest, which is merging with PrimeStaked, offers excellent liquid restaking options. With YieldNest, you can stake your tokens and get liquid tokens that can be used in various DeFi projects.
The merger with PrimeStaked means more features and better rewards for users. This platform is becoming a top choice for those looking to maximize their returns through liquid restaking.
Renzo is another great platform for liquid restaking. It allows you to stake a variety of tokens and receive its ezETH LRT in return. These liquid tokens can be used in other DeFi activities to earn more rewards.
Renzo is known for its innovative features and strong community support, making it a reliable option for liquid restaking.
Restaking can be a great way to earn more rewards and grow your crypto holdings. However, it’s important to understand restaking involves risk (as do liquid restaking platforms).
With that in mind, here are some things to consider before you start restaking:
Despite these risks, restaking can be very rewarding if done carefully. Make sure to do your research and choose reliable platforms like Ether.fi, YieldNest, and Renzo.
By understanding the risks and managing them wisely, you can take full advantage of the benefits of restaking while slashing risks
Liquid restaking is an exciting strategy in the DeFi world that can help you earn more rewards and grow your crypto holdings. By staking and restaking your tokens, you can maximize your returns and support the network at the same time. Platforms like Ether.fi, YieldNest, and Renzo offer great options for liquid restaking, providing flexibility and potential for higher earnings.
As with any investment, it’s important to understand the risks involved and choose reliable platforms. By doing your research and managing your risks, you can make the most of liquid restaking and take your DeFi investments to the next level.
What is liquid restaking?
Liquid restaking allows users to stake their tokens and receive liquid tokens in return, which can be used in other DeFi activities. This method enhances flexibility compared to traditionally staked tokens, offering more opportunities for earning rewards.
How does liquid restaking improve crypto economic security?
Liquid restaking improves crypto economic security by encouraging more users to deposit their tokens, which supports AVSs on EigenLayer. This process helps maintain network stability and security.
What are the benefits of using platforms like Ether.fi and YieldNest for restaking?
Platforms like Ether.fi and YieldNest allow users to earn additional rewards through EigenLayer restaking, maximizing their returns. These platforms offer advanced features and strong security, making them ideal for managing restaked tokens.
Is liquid restaking safe?
Liquid restaking can be safe if you choose reliable platforms and understand the risks, such as market fluctuations and smart contract vulnerabilities. However, remember this content is for informational purposes only, and you should do your own research before investing.
Over the past year, EigenLayer has gained massive popularity with over 5 million ETH ($16+ billion) restaked on the platform. The protocol claims the 2nd largest dapp by total value locked, second only to Lido Finance.
Restaking is a concept pioneered by EigenLayer that enables builders to share Ethereum’s security base by using staked ETH as collateral for validators. Developers use EigenLayer to leverage Actively Validated Services (AVSs) to decentralize various categories, such as sequencers, AI, co-processors, oracles, and beyond.
Users can deposit ETH assets in exchange for heightened rewards, such as ecosystem airdrops and Restaked Points. Season 1 concluded in March, distributing the highly anticipated EIGEN token to restakers. The next season is currently underway, with a similar EIGEN allocation to be distributed to restakers at the end of season 2.
Listed in December 2023, Origin Ether was among the first LSTs to be integrated for restaking on EigenLayer. Restaking can be highly rewarding for LST holders, as there have already been several airdrops users have qualified for. Below, we’ve outlined how you can get started restaking Origin Ether, as well as ways to keep your funds liquid while restaking.
Restaking OETH on EigenLayer is a fairly straightforward process. There are a few key considerations, such as liquidity and rewards, that you should take into account before starting your restaking journey. Let’s delve into Ethereum restaking, and how you can get started by using Origin Ether.
In order to restake on EigenLayer, you must first hold Origin Ether or another supported token on the platform. OETH is one of the top yielding LSTs on EigenLayer, enabling you to earn competitive staking yields while earning restaking rewards.
If you don’t already own Origin Ether, you can swap ETH for OETH on Curve, or visit the Origin dapp to get OETH. The Origin dapp intelligently routes transactions through AMMs and direct minting to guarantee the best available rate on your swap.
Once you’ve navigated to the swap page, connect your wallet and approve your ETH to be used on the dapp. Then, enter the amount of ETH you want to swap for OETH, and sign the transaction from your wallet to execute the trade.
Next, visit the EigenLayer dapp and navigate to the OETH restaking page. The dapp shows your current restaked balance, as well as the market capitalization and total amount of restaked tokens by asset type.
To get started with restaking, enter the amount of OETH you’d like to deposit on EigenLayer and approve the spend from your wallet.
Before you submit the transaction, you will be able to select an operator for your restaked OETH. While there are dozens of operators you can chose from, popular operators include EigenYields, P2P, and AltLayer.
Once you’ve entered the amount of OETH you wish to restake and selected an operator, you can submit the transaction by approving the transaction from your wallet. Once finalized, you will begin earning Eigen Restaked points on top of your OETH yield.
Note: EigenLayer withdrawals take 7 days to finalize. This means that you will not have access to your tokens immediately after withdrawing, so make sure to account for this when managing your position.
Due to the liquidity restraints on EigenLayer, some users opt to restake their OETH through liquid restaking tokens (LRTs). Liquid restaking tokens operate similarly to LSTs, where users hold a liquid version of the restaked asset instead of locking funds directly.
On top of liquidity benefits, users can also earn additional rewards from LRT airdrops and incentives. PrimeStaked is the platform of choice for liquid restaking with Origin Ether, and an airdrop has been confirmed by the passage of YieldNest’s governance proposal. Users who hold primeETH and migrate to ynLSD following the migration will be eligible for multiple seasons of the YND airdrop, slated for H2 2024.
Restaking your OETH can be a great way to increase your rewards on Origin Ether. EigenLayer users earn Restaked Points, which directly translate into EIGEN tokens at the end of each season. While EIGEN is not currently transferrable, pre-markets have indicated a value around $10 per token at the time of writing.
Season 2 is currently underway, with 5% of the total EIGEN supply being allocated to restakers. A third season has been confirmed, so restakers can expect heightened rewards via EIGEN through 2024. Following season 3, restakers will continue earning rewards from EigenLayer AVSs and potential airdrops from ecosystem partners.
For further support or questions on how to restake Origin Ether, we invite you to join our team in Discord.
Origin Ether is expanding its integrations on Ethereum and Arbitrum. Learn how to earn over 50% APR using OETH in DeFi on our DeFi Opportunities Page!
Origin Ether’s superior peg-keeping and battle-tested codebase make it one of the space’s most versatile liquid staking tokens (LSTs). As such, OETH boasts diverse integrations on leading DeFi money markets across Ethereum and beyond.
Users can harness these pools to take advantage of generous incentives on offer. Simply follow the steps below to start using OETH on money markets.
As OETH is rebasing, wrapped OETH (wOETH) is integrated with money markets for streamlined accounting. Unlike OETH, wOETH increases in price relative to ETH as staking rewards are earned. These money markets, such as Morpho and Silo, offer wOETH liquidity pools for lending purposes. Users can put up wOETH as collateral in these pools to borrow assets, or supply liquidity to earn a share of fees on the pool.
You can acquire OETH directly via Origin’s all-in-one dapp. Simply visit the dapp, connect your Web3 wallet, and deposit ETH or WETH to receive wOETH.
wOETH boasts incentivized pools on both Ethereum Mainnet and Arbitrum. Arbitrum pool incentives run until August, with boosted yields available on Silo Finance.
Should you wish to use wOETH on Arbitrum, you’ll need to bridge to the network via the Origin dapp.
Check out our bridging guide for step-by-step instructions.
At present, users can choose to take advantage of the wOETH Morpho pool on mainnet and the Silo pool on Arbitrum.
With more than $2m in WETH liquidity, the co-incentivized Morpho wOETH/WETH pool offers deep liquidity and robust incentives. Origin is distributing OGN incentives to WETH lenders until August to bolster usage.
Silo’s wOETH-ETH-USDC.e market offers deep incentives for users. As the leading money market on Arbitrum, Silo boasts significant traction on the network. The pool has been co-incentivized by Silo and Origin, currently resulting in borrowers earning yield.
Looping wOETH on leading money markets allows you to leverage up on staking yield and compound returns. At its core, the strategy is fairly straightforward. Let’s examine Morpho’s pool as an example:
While users can loop wOETH manually using these steps, this can require significant time and effort, in addition to gas costs. Fortunately, several innovative platforms automate this process, offering one-click strategies with vast compounding opportunities. These platforms incorporate flashloans to make looping as seamless as possible.
Morpho’s wOETH pool has been integrated with leveraged staking pioneers, Summer.fi and Contango.
Check out our guides to begin looping on Morpho’s mainnet wOETH pool:
Liquidity pools are a core piece of DeFi infrastructure that allow users to easily trade tokens without using a centralized exchange or intermediary. Instead of using order books for liquidity, DEXs use liquidity pools. Liquidity pools are smart contracts that hold tokens for users to trade with; in the case of OETH, most liquidity pools use the OETH/ETH pair.
Origin Ether has deep liquidity across several liquidity pools, allowing traders to easily swap into and out of OETH. Users that provide liquidity to these pools are rewarded with trading fees, as well as staking rewards and incentives on certain pools delineated below.
Liquidity provision for Origin Ether (OETH) is a fairly straightforward process that is similar to providing liquidity with any other ERC-20 token. There are a few key considerations to keep in mind, however. One key distinction is liquidity provision for Wrapped Origin Ether (wOETH) vs. Origin Ether (OETH); wOETH will continue earning staking rewards by default, whereas smart contracts using OETH must opt into yield to earning staking rewards.
As OETH liquidity is paired with ETH, liquidity providers face minimal impermanent loss when providing liquidity. This is attractive for users who want to accumulate ETH without risking directional exposure to non-ETH pegged assets. Let’s delve into how to provide liquidity with OETH below.
The first step to provide liquidity on Origin Ether is to acquire both ETH and OETH (or wOETH). Since OETH liquidity pools are paired with ETH, you will need both tokens to provide liquidity. OETH is the primary token for liquidity provision on ETH mainnet, while wOETH is more commonly used on Arbitrum.
The Origin dapp lets you swap ETH for OETH, routing the transaction through whichever protocol offers the best conversion rate at the time of the swap.
Next, chose the network where you would like to provide liquidity. Origin Ether is currently supported on Ethereum mainnet and Arbitrum, with several liquidity pools supported between the two networks.
The primary liquidity pools on Ethereum mainnet are supported by Curve and Uniswap. Gyroscope is the primary liquidity pool for wOETH on Arbitrum, which routes liquidity to the wOETH/ETH Balancer Pool. Liquidity provision on Gyroscope is currently incentivized by Origin’s Arbitrum grant, allowing liquidity providers to earn bonus yield in the form of ARB tokens until August 2024.
Once you’ve selected your network and liquidity pool, it’s time to provide liquidity using your tokens. You’ll be prompted to enter the amount of liquidity you’d like to provide; once entered, you will need to sign approvals from your wallet to allow the DEX to access your tokens. Once approved, you will be prompted to sign a transaction to send your tokens to the liquidity pool.
Transactions typically take between 30 seconds and 2 minutes to finalize. Once finalized, you will be able to view your position under the liquidity tab on the dapp you chose to provide liquidity on. DEXs don’t employ lockup periods, so you may withdraw your tokens at any time.
Users that provide liquidity with OETH and wOETH are able to earn trading fees on their tokens while maintaining their ETH exposure on both sides of the token pair. Earnings are amplified by pools that use wOETH or opt into OETH yield, as liquidity providers on these pools earn both trading fees and staking rewards. Currently, the Gyroscope pool on Arbitrum offers the most attractive rates for wOETH liquidity provision.
Certain pools are further incentivized by rewards tokens, such as CRV and ARB. The OETH/ETH pool on Curve has incentives streamed to the pool each epoch, while the Gyroscope pool on Arbitrum will stream ARB rewards to users until August 2024.
For additional help with OETH liquidity provision or to join us on our journey of creating the most composable LST on the market, join our Discord and get involved.
We are delighted to announce that Clément Moller has joined the Origin Protocol team as a Smart Contract Engineer!
Clément brings a wealth of experience and a proven track record of significant accomplishments in both the blockchain and research sectors. His background includes publishing research papers for the American Society of Mechanical Engineering and the European Turbo-machinery Conference while working as a researcher engineer at the German Aerospace Center (DLR).
Additionally, Clément has designed StakeDAO's "OnlyBoost" architecture, a fully automated, on-chain, and decentralized system that optimizes LP deposits between Convex and StakeDAO, enhancing efficiency for yield seekers. He also developed the pre-deposit vault for Swell L2, which has achieved a significant Total Value Locked (TVL) of $1.4 billion, showcasing his expertise in creating high-impact blockchain solutions.
Clément's interest in crypto began in 2017 after seeing Bitcoin on the news. He started learning about blockchain and how tokens work, and by 2020, he was coding smart contracts for fun in his free time. He then posted on Twitter, offering to work as a junior developer for free to gain experience, which led to an opportunity with the StakeDAO team. For nine months, he balanced his work at the German Aerospace Center with his passion for Web3 before making the switch to work on different projects like StakeDAO, SwellNetwork, Prisma Finance, and DeFi-Money, eventually joining Origin Protocol.
Clément chose to join Origin after meeting our Senior Solidity Engineer, DVF, whose skills he had admired at crypto conferences they attended. He realized that Origin Protocol was a serious company building real solutions after his interviews, where he found everyone to be smart, talented, and equally passionate about decentralization. The shared values and the impressive team made his decision to accept the offer an easy one.
“I chose Origin mainly because I wanted to work with DVF,” Clément shared. “I figured if he was at Origin Protocol, it must be a serious company building real things. After my interviews, I realized everyone at Origin was smart, talented, and cared about decentralization as much as I do. We shared the same values, which made me decide to accept their offer.”
Clément is passionate about Decentralized Finance, especially the aspects of being censorship-resistant and eliminating the need for intermediaries. In his free time, he loves to travel and explore nature. A fun fact about Clément: he received the offer on a Friday morning and was asked to join the team for the off-site in Vancouver by Sunday, despite being based in France! Needless to say, Clément has hit the ground running at Origin.
Clément on a hike in Madeira, Portugal
Please join us in welcoming Clément Moller to the Origin Protocol team! We are excited to see the innovative solutions and expertise he will bring to our projects.
With the successful passage of a recent governance proposal, Origin is embarking on a long-term partnership with liquid restaking innovators, YieldNest. This integration will see primeETH merge with YieldNest’s native LRT, ynLSDe.
YieldNest has earmarked substantial incentives for PrimeStaked users, including token allocations for PrimeStaked XP holders and those who migrate to ynLSDe. Specifically, users can qualify for an allocation to the protocol’s governance and value accrual token, YND, over multiple phases. Excitingly, xOGN holders can also be eligible to receive YND during the YieldNest TGE.
Users can connect their wallets to YieldNest's portfolio page to check their balances.
Key Dates:
YieldNest’s incentive structure meaningfully rewards the Origin community for migrating TVL to the protocol. The protocol aims to be the most community-centric LRT platform, allocating at least 60% of the total YND supply to the YieldNest and Origin communities. YND will be distributed across multiple seasons to reward ongoing support.
A snapshot of users’ Prime XP holdings will be taken when the migration goes live. Holders qualify for a pro-rata share of YND based on how much primeETH XP they have accrued.
Users who migrate to ynLSDe will qualify for future seasons of YieldNest airdrops, with Season 1 commencing on August 15th. In order to best reward users as the protocol grows, YieldNest plans to scale its airdrop allocations in tandem with its TVL growth.
YieldNest’s initial incentives will amount to more than 15% of the total YND supply, which is substantially higher than similar protocol airdrops.
YieldNest plans to allocate up to 2.5% of YND supply to xOGN stakers, available to claim at TGE. This allocation rewards the Origin community as a whole for contributing TVL to YieldNest’s product suite.
We appreciate the community’s support as we finalize PrimeStaked’s future trajectory. With work on migration and withdrawal mechanics reaching completion, users will soon be able to migrate their holdings and accrue substantial YND incentives for their participation.
Make sure to follow us on X and join the Origin Discord server to keep up with the latest updates as they’re announced.
Every month, the Origin team publishes an update to our token holders and the broader community. We hope you enjoy our June 2024 edition.
Things were heating up in June with wOETH growth on Arbitrum and a potential partnership for PrimeStaked.
Welcome to Origin’s June Token Holder Update! Last month, we made substantial progress on OETH money market integrations, grew our liquidity on Arbitrum, and kicked off an exciting new partnership proposal that incentivizes both primeETH XP and xOGN holders.
In case you missed the announcements from our X account, here are some of Origin’s highlights from June:
With that, let’s dive deeper into each of these updates, keeping you in the know on everything Origin accomplished in June.
A new governance proposal aims to join forces and reward primeETH XP.
Last week, YieldNest set forth a governance proposal to merge primeETH with its upcoming LRT, ynLSD. The proposal details the proposed partnership, suggesting that OETH becomes the go-to LST for YieldNest’s restaking products. Additionally, YieldNest has proposed an airdrop allocation to both primeETH XP and xOGN holders if the proposal is successful.
YieldNest is backed by top leaders in DeFi, including the founders of Curve, Convex, Frax, and Kyber. The protocol innovates on existing LRTs, offering curated exposure to restaking AVSs, focusing on categories such as data availability, coprocessors, oracles, and others. If the proposal passes OGN governance, YieldNest will take over as the primary development team for Origin’s restaking products to ensure the PrimeStaked community stays at the forefront of the restaking industry.
The voting period on the proposal ends today at 2 am UTC (10 pm ET). We encourage you to vote on the proposal and provide your feedback in Discord. If the proposal passes, a migration portal will be created to migrate primeETH to ynLSD, combining the protocols’ TVL under YieldNest’s upcoming LRT.
Stay in the loop with Morpho’s new wOETH market, enabling up to 20% ROE via summer.fi.
Morpho is one of the largest money markets on Ethereum with $1.8 billion in total value locked. Over the course of June, wOETH users have taken advantage of our newly launched Morpho wOETH market to leverage their staking yield and gain liquidity from their wOETH holdings.
Re7 Capital is the primary liquidity provider with 1,000 WETH currently provided to the Morpho wOETH market. Over $2.9 million has already been borrowed, and $2 million in liquidity is currently available to borrowers.
With an 86% loan to value (LTV) on the wOETH market, users have the ability to leverage their holdings up to 6.67x. Looping wOETH manually requires multiple transactions and incurs high gas costs, so we’ve secured several integrations to streamline the process.
Summer.fi and Contango are both great options for users looking to loop wOETH. Both protocols allow you to select the amount of leverage you’d like to take on, executing the trade through Morpho in one transaction.
wOETH liquidity on Arbitrum is growing. The wOETH/ETH pair is now the largest liquidity pool on Gyroscope!
ARB incentives began streaming to wOETH users on Arbitrum in early June. These incentives have bootstrapped DEX liquidity on Arbitrum, as well as incentivized deep liquidity on Arbitrum’s leading money market, Silo Finance.
The wOETH market on Silo Finance allows users to deposit wOETH, ETH, and USDC.e to earn up to 15.5% APY on their deposits. For the first time on Arbitrum, wOETH depositors can loop their positions to leverage their staking yield and ARB rewards. Max looped wOETH currently earns 154% APR at 6.67x leverage.
Since launching on Silo Finance, the wOETH market has accrued over $2.4 million in liquidity, with 700 ETH worth of deposits between wOETH and ETH.
Wrapped OETH DEX liquidity grew significantly in June with incentives streaming on Gyroscope. wOETH holders can use Gyroscope to provide liquidity to the wOETH/ETH pool on Balancer, earning trading fees, ARB incentives, and staking yield. With over $800,000 of liquidity, the wOETH/ETH pair is now the largest liquidity pool on Gyroscope by TVL.
Check out our bridging guide to get started using wOETH on Arbitrum today.
Learn how OETH and OUSD work nonstop to deliver passive yield to your wallet.
Origin Ether’s 30-day trailing APY sat above 3.9% in June, earning holders 30% more yield than Lido’s stETH and Rocket Pool’s rETH. As Origin Ether transitions to a pure LST, yields have temporarily decreased due to the protocol’s LST divestment. OpenZeppelin’s audit of Beacon Chain staking for Origin Ether has completed, and we expect OETH to begin earning more validator rewards in the coming weeks.
Origin Dollar’s 30-day trailing APY achieved 8.7% in June. Origin Dollar’s USDC, USDT, and DAI collateral sat at 44%, 32%, and 24%, respectively. USDC and USDT collateral currently earns yield through the Morpho Aave strategy, while DAI collateral earns yield through the MakerDAO DSR.
That’s all for June’s Token Holder Update! We’re excited to see the final results of the YieldNest proposal, and we look forward to rewarding our community in new, exciting ways. As a reminder, ARB incentives will continue to be streamed to wOETH users until August, so it’s not too late to bridge funds to Arbitrum. Here are a few pieces of content to get you up to speed on the topics discussed above:
As always, we invite you to join our Discord where we build in public, answer the community’s questions, and host Community Calls the first Monday of each month.
Earlier today, YieldNest submitted a proposal to OGN governance seeking to merge primeETH with ynLSD. ynLSD is YieldNest’s upcoming LST-backed liquid restaking token, which innovates on liquid restaking with curated baskets of AVS exposure across multiple restaking platforms. The proposal aligns incentives across the Origin community and YieldNest, offering substantial incentives for both primeETH and xOGN holders.
The proposal aims to build a long-term partnership between Origin and YieldNest, leveraging each team’s strengths to further develop our restaking products and better reward our communities. If the proposal passes, YieldNest will promote OETH as the primary collateral asset of ynLSD and allocate a substantial percentage of its upcoming airdrop to the Origin community.
The YieldNest team is building new primitives in liquid restaking, enabling LRT holders to gain isolated exposure to actively validated services (AVSs). YieldNest users can select exposure from specific AVS categories, such as coprocessors, data availability, rollups, and oracles. The team recently launched its ETH-backed LRT, ynETH, which earns yield from Ethereum validators and a curated basket of AVSs. YieldNest plans to expand its product suite with ynLSD, the protocol’s upcoming LST-backed LRT slated to launch in Q3 2024.
YieldNest aims to build the most community-centric LRT platform by committing over 60% of its token supply to the community. Multiple seasons of airdrops will be conducted, distributing no less than 15% of the max YND supply to LRT holders that use the protocol.
The founding team has multiple years of experience in DeFi with a focus on Ethereum’s ecosystem. YieldNest is backed by industry leaders, including the founders of Curve, Convex, Frax, Kyber, and others. The future looks promising for YieldNest's anticipated ynLSD; its curated AVS exposure carves out a new primitive that we believe will be superior to existing LRT players.
The proposal to merge primeETH and ynLSD underscores our commitment to provide more user rewards and constant innovation in liquid restaking. YieldNest’s approach to restaking is well aligned with PrimeStaked’s goals, positioning our community to receive heightened rewards and to stay up-to-date with the latest LRT innovations.
If the proposal passes, YieldNest will allocate a portion of its YND token supply to primeETH and xOGN holders. The governance proposal details these incentives, including token rewards for primeETH XP, OGN stakers, and further incentives for users who migrate their primeETH to ynLSD.
If OGN stakers vote in favor of the proposal, YieldNest will take over as the primary technology choice for our LRT products, ensuring PrimeStaked users stay at the forefront of the restaking industry. We appreciate our community’s commitment to PrimeStaked, and we feel that this merger will position our LRT users for long-term success.
YieldNest’s curated AVS baskets and isolated AVS exposure focus on providing tangible yield for users, rather than focusing solely on points distribution. YieldNest will provide Origin with a network of new restaking opportunities with support from multiple restaking platforms, including EigenLayer and Symbiotic. We believe this will help boost Origin Ether’s utility within the broader restaking industry.
OGN stakers can vote for or against YieldNest’s proposal until July 1st, 10 pm ET. While the proposal is open for voting, YieldNest will be joining Origin’s Community Call on July 1st at 12 pm ET to brief our communities on the proposal. The Community Call will highlight YieldNest’s ynLSD launch plans and incentives proposed for the Origin community.
Origin’s core team supports YieldNest’s merger proposal, as we believe this long-term collaboration will benefit the PrimeStaked community, OGN stakers, and our broader goals for Origin Ether. If the proposal passes, the Origin and YieldNest teams will launch migration contracts to migrate primeETH to ynLSD. PrimeStaked users that migrate their positions will be eligible to claim future YND airdrops and additional incentives detailed in the proposal. All wallets with primeETH XP will be eligible for the retroactive airdrop when YND launches.
As always, users who have specific feedback are encouraged to message the core teams in Discord. Further details on the proposal will be shared in our communities as voting closes and incentives are finalized.
