With the recent integration of Wrapped OETH (wOETH) on Silo Finance, Origin Protocol continues to expand its reach within Arbitrum’s DeFi ecosystem. This integration enables users to leverage their wOETH for lending and borrowing in an isolated market, reducing cross-asset risks and providing a tailored transacting experience. The wOETH launch on Silo aligns with Origin’s ongoing ARB incentive program, offering additional rewards for those who utilize the wOETH market on Silo for lending and borrowing.
Silo Finance is a second-generation lending protocol that innovates on money markets by creating isolated lending and borrowing positions. By isolating positions, users maintain exposure to their assets and can choose a market that best fits their risk profile. This means your risk is contained to the assets you provide as collateral, instead of gaining exposure to a basket of assets deposited to the protocol.
With support for Ethereum, Arbitrum, and Optimism, Silo is a multi-chain lending platform with over $130 million in total value locked. Thanks to the recent integration of Wrapped OETH on Silo, users can now lend and borrow against their wOETH on Arbitrum.
The Wrapped OETH market on Silo is a great opportunity for users looking to borrow against their Origin Ether. For a limited time, users that use the wOETH Silo are incentivized with ARB, making both lending and borrowing a profitable endeavor.
Here’s how to get started with wOETH on Silo Finance in 4 easy steps:
You’ll need Wrapped OETH on Arbitrum to get started. This will later be deposited to the wOETH market on Silo Finance. The Origin dapp allows you bridge ETH or wOETH directly to wOETH on Arbitrum, saving you time and gas costs with just one transaction.
Next, head to the Silo Finance dapp and make sure you have Arbitrum selected as your network. Search for the wOETH, ETH, USDC.e market, and review the lending and borrowing rates on offer. The wOETH market is currently incentivized by ARB, so both borrowing and lending have positive yield for users.
Silo’s wOETH market dashboard shows key information, such as utilization rates, total deposits, and total funds available to borrow. Once you’ve reviewed this information, you can connect your wallet and deposit wOETH to Silo Finance.
To deposit your wOETH on Silo, connect your wallet in the upper right-hand corner of the window. Once connected, you’ll be able to enter the amount of wOETH you’d like to deposit to the wOETH, ETH, USDC.e market. Enter the amount of wOETH, click deposit, and approve the transaction in your wallet. Your transaction should finalize shortly thereafter, and your balance will appear on the Silo dashboard.
Once you’ve deposited wOETH on Silo, you can borrow ETH or USDC.e against your Wrapped OETH. The wOETH market has a max loan-to-value ratio of 85%, meaning that you can borrow up to 85% of your collateral value using Silo.
In order to maximize your exposure to wOETH, you may chose to loop your tokens in the Silo wOETH market. This process is fairly straightforward:
You can continue this process to gain 5x leverage on your wOETH position, earning ARB tokens, staking yield, and lending APRs along the way.
Using Wrapped OETH on money markets provides users with unique benefits for earning additional yield. Wrapped OETH appreciates in value relative to ETH, as staking rewards accrue to the token’s price. This ensures that all wOETH holders earn staking yield by default, simplifying the use of wOETH across various DeFi integrations. Additionally, Origin Ether’s tight peg to ETH allows users to loop wOETH with confidence, minimizing volatility risks.
Looking for more help getting started on Silo? Join the Origin Discord and become part of our growing community!
