How to Use OETH on Pendle Finance

OETH x Pendle Finance

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! 

With more than $3B in TVL, Pendle’s yield tokenization primitives have dominated DeFi since launching in 2023. Pendle’s mechanics feature an innovative AMM that allows users to trade and leverage yield, earn fixed yields on assets, and supply liquidity to pools.

OETH was among the first assets supported by Pendle, empowering holders to take leveraged bets on the token’s yield performance.

Learning how to harness Pendle’s feature set can unlock major opportunities for investors to compound their returns.

How to Use Origin Ether on Pendle

Pendle incorporates real world bond mechanics into its offerings, popularizing on-chain instruments previously used primarily in traditional finance. At a high level, this flow works by wrapping and splitting the underlying asset into its principal and yield-bearing components:

• Pendle wraps the underlying asset (OETH is wrapped as SY-OETH)
• This wrapped asset is then split into a Principal Token (PT-OETH) and Yield Token (YT-OETH)
• You can choose to hold the PT to earn a fixed APY, while the YT carries exposure to yield generated
• Users can trade both PT and YT tokens for assets on the Pendle AMM

All Pendle assets feature maturity dates. Upon maturation, the PT can be redeemed for the entire underlying token. Conversely, the YT earns yield until maturation, after which it no longer holds value.

Step 1: Acquire Origin Ether (OETH)

First, you’ll need to acquire OETH to deposit to Pendle. Origin’s dapp allows you to mint OETH seamlessly using ETH or WETH. Simply connect your Web3 wallet and follow the prompts to get started.

Step 2: Navigate to the Pendle Finance Dapp

Once you’ve acquired OETH, head over to the Pendle Finance dapp and connect your wallet. The trade page displays active Pendle markets, and breaks down the prices and APYs of YT and PT on each asset.

Official Pendle URL: https://app.pendle.finance/

Step 3: Choose PT OETH, or YT OETH, or Liquidity Provision

On the OETH dashboard, you can deposit OETH to mint PT OETH and YT OETH, or swap for either token.

Pendle's OETH Dashboard

Pendle’s OETH pool comprises SY-OETH and PT OETH. As PT-OETH reaches parity with SY-OETH upon maturation, users can supply liquidity without significant risk of impermanent loss.

Users who supply liquidity to the pool earn rewards derived from a share of trading fees. The project’s native token, PENDLE, can be staked to further increase rewards and receive voting rights in the form of non-transferable vePENDLE.

Benefits of OETH on Pendle Finance

OETH’s integration on Pendle empowers users with more ways to compound OETH yield. Users can take leveraged bets on OETH’s yield performance, hedge their holdings, and provide liquidity with additional incentives.

Get started now: Pendle OETH Market