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 holders can now use Wrapped OETH across Arbitrum, and Gyroscope is the main liquidity hub for wOETH on the network. As such, liquidity providers can earn substantial yield from depositing wOETH and ETH to Gyroscope, which enables other users to trade Wrapped OETH on Balancer.
Staying ahead of new opportunities in DeFi will help you get the most from your Origin Ether. This guide will walk you through what Gyroscope is, and how you can get started providing wOETH liquidity on Gyroscope today.
Gyroscope is a DeFi protocol designed to create resilient and efficient liquidity pools. Unlike traditional liquidity pools, Gyroscope utilizes a unique mechanism to ensure stability and optimal returns for liquidity providers. By focusing on reducing slippage and impermanent loss, Gyroscope offers a more secure and profitable environment for liquidity provision.
Gyroscope's architecture is built to support multiple assets, providing flexibility and diversification options for liquidity providers. Its integration with Arbitrum allows for faster transactions and lower fees, making it an accessible alternative to Ethereum mainnet.
Providing liquidity on Gyroscope is a fairly straightforward process. By depositing to the wOETH-ETH liquidity pool, you’ll earn trading fees, staking yield, and for a limited time, ARB incentives. Let’s delve in to how you can get started with wOETH liquidity provision today.
First, you’ll need to hold both ETH and wOETH on Arbitrum. If you don’t already have wOETH on Arbitrum, you can bridge ETH or Origin Ether to wOETH through the Origin dapp. You can also swap ETH for wOETH on Balancer if you already have funds available on Arbitrum.
Next, visit the Gyroscope dapp and connect your wallet. The wOETH-ETH pool uses an ecliptic concentrated liquidity pool (E-CLP), optimizing your funds to be used within a specified price range for higher capital efficiency.
Lastly, navigate to the ETH/wOETH Arbitrum pool on the Gyroscope dapp. Enter the amount of ETH and wOETH to deposit to the pool on the right-hand side, click join, and approve the transaction through your wallet. Once the transaction is finalized, you’ll be able to view your position from the same page you deposited liquidity on.
Once you’ve deposited your tokens to the pool, you’ll begin earning yield on your position. As of July 2024, APRs range from 8.97% to 11.58%, without accounting for staking rewards that are baked into the price of Wrapped OETH. Yield is currently boosted by ARB and BAL token incentives, which will continue to stream to liquidity providers until the end of August.
Beefy Finance is a multi-chain yield optimizer that automates yield compounding to maximize your liquidity provision yield. You may choose to use the wOETH-ETH Beefy Finance vault to compound your LP share as you earn yield on your position. To do so, you'll first need to deposit your funds to Gyro, and then you can deposit your LP tokens to Beefy Finance to compound your yield.
Liquidity providers that use wOETH can earn several avenues of yield simultaneously. Unlike OETH, which rebases as staking yield is earned, wOETH appreciates in value as staking rewards accrue to the token. This means wOETH constantly appreciates relative to ETH, giving users the ability to earn staking yield while providing liquidity on AMMs.
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