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In the ever-evolving realm of DeFi, optimizing positions while maintaining liquidity is key for investors’ success. Origin Ether (OETH) provides users with a unique opportunity to leverage the benefits of liquid restaking tokens, optimizing yield generation to best fit your risk profile.
This article will guide you through the steps to effectively use OETH with liquid restaking tokens, ensuring you can make the most of your crypto assets while staying liquid.
Liquid Restaking Tokens (LRTs) are tokens representing restaked ETH assets. EigenLayer is the most prevalent restaking platform with over $15 billion in TVL, so this article will focus on LRTs within EigenLayer’s ecosystem.
Users who deposit directly to EigenLayer lock their funds on the platform until they initiate a withdrawal. Withdrawals take 7 days to finalize, which adds to the illiquidity of directly restaked ETH assets. Liquid Restaking Tokens allow users to earn yield from EigenLayer restaking while maintaining liquidity on their position. LRTs can also have benefits beyond liquidity, such as ecosystem airdrops and utility on other DeFi protocols.
As one of the first LSTs listed on EigenLayer, OETH can be used as collateral for various liquid restaking tokens. Follow the steps below to get started:
If you don’t already own OETH, you’ll need to acquire some before minting an LRT. To do so, you can swap ETH for OETH on Curve or Uniswap. If you want the best rate for your ETH-to-OETH swap, we recommend using the Origin dapp to acquire OETH. The Origin dapp will optimize your swap between DEXs and direct minting to ensure the best rate on your trade.
There are several LRT protocols that support OETH, but the most notable are PrimeStaked and Eigenpie. Eigenpie offers isolated LRTs, meaning that you will maintain your OETH exposure when swapping OETH for mOETH, Eigenpie’s OETH-based LRT.
Origin Ether is the primary collateral asset for PrimeStaked’s primeETH LRT, which will soon merge with YieldNest’s ynLSD. In accordance with the recent governance proposal, primeETH holders will qualify for the YND airdrop based on their primeETH XP accrued.
The final step to start earning rewards from restaking is to mint the LRT of your choosing. If you’re using PrimeStaked, navigate to the PrimeStaked dapp to mint primeETH with OETH. On the dapp, connect your wallet, select the amount of OETH you want to deposit for primeETH, and approve the transaction.
Once finalized, your primeETH balance, EigenLayer Points, and primeETH XP will show on the OETH dapp. Note that 1 primeETH is worth more than 1 ETH, as staking yield accrues directly to the price of primeETH. This means that a 1 ETH swap will result in slightly less than 1 primeETH.
An OGN governance proposal recently passed to merge PrimeStaked with YieldNest, a community-centric LRT with multiple upcoming airdrop seasons.
YieldNest has confirmed a YND airdrop allocation for those who hold primeETH XP and for those who migrate their primeETH to ynLSD. A snapshot of PrimeStaked users' XP will be taken when the migration portal opens. Holders qualify for a pro-rata share of YND based on how much primeETH XP they have accrued.
YieldNest aims to be the most community-centric LRT by allocating over 60% of its token to the community. While PrimeStaked users automatically qualify for the first airdrop, following seasons will distribute YND based on YieldNest “Seeds.” PrimeStaked users who migrate to ynLSD are eligible to earn boosts on Seeds, helping them qualify for a larger YND allocation in future seasons.
ynLSD is YieldNest’s upcoming LST-backed LRT. YieldNest’s LRT innovates on existing liquid restaking tokens by offering curated exposure to restaking categories, such as co-processors, data availability, oracles, and beyond. Curated AVS exposure enables restakers to target specific airdrops within the restaking ecosystem.
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!
