Origin Ether’s expansion to Arbitrum has given rise to a host of new DeFi opportunities across leading protocols. The Wrapped OETH (wOETH) integration on Dolomite offers users the chance to supply collateral and benefit from incentivized APRs.
Dolomite is a next-gen hybrid money market featuring lending and margin trading functionality. With more than $50M in TVL, Dolomite is growing rapidly, claiming a place as one of Arbitrum’s leading lending markets.
At present, users can utilize the Dolomite pool for lending purposes. Upcoming features will allow users to trade and leverage yield up to 5x.
Follow the steps below to use wOETH on Dolomite:
First, you’ll need to acquire wOETH on Arbitrum. Unlike OETH, wOETH does not rebase. This means that earned staking yield directly increases wOETH’s value. Origin’s all-in-one dapp allows you to bridge native ETH or wOETH for wOETH on Arbitrum in a single transaction.
OETH holders will need to swap to wOETH before bridging to Arbitrum. Check out our bridging guide for step-by-step instructions.
Next, head over to the Dolomite borrow page and connect your wallet by following the prompts in the top right corner of the page.
To open a new position, you’ll need to deposit wOETH to the Dolomite pool on the borrow page. After depositing, you’ll be able to borrow WETH against your supplied wOETH. At the time of writing, the pool carries a loan-to-value (LTV) ratio of 80%.
Looping on the Dolomite pool allows you to leverage yield for boosted returns. To do so, you can use borrowed WETH to purchase more wOETH. Depositing this wOETH to Dolomite allows you to increase your position while also borrowing more WETH. Repeating this process further increases potential returns from the pool.
While wOETH does not rebase, the token appreciates in price relative to ETH to reflect accrued staking yield. This makes it an ideal asset for leveraged staking and broader DeFi applications, allowing you to earn compounded yield seamlessly.
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