How to Use wOETH on Spectra Finance

Spectra Finance integrates Wrapped Origin Ether (wOETH), unlocking new use cases for holders and allowing them to leverage its yield through innovative mechanisms. This guide explains the benefits and how to get started with wOETH on Spectra.

Overview of Spectra Finance

Spectra Finance, formerly known as APWine, is a protocol that tokenizes yield from interest-bearing tokens (iBTs) like OETH. It splits an iBT into two components: Principal Tokens (PTs) and Yield Tokens (YTs). The PT represents the principal value, while the YT represents future yield entitlement.

How Spectra Works

Spectra Finance enables traders to lock in APYs on yield-bearing assets and gain exposure to variable yields through YT. The three main components of Spectra Finance are highlighted below:

• Tokenization: Spectra takes wOETH and splits it into PT-wOETH and YT-wOETH.
• Principal Tokens (PTs): These provide a fixed yield until maturity and can be redeemed 1:1 for the underlying wOETH at maturity.
• Yield Tokens (YTs): These provide exposure to the variable yield of wOETH until expiry. After expiry, YTs hold no value. The collected yield from holding YTs is accumulated separately within the Spectra App and can be claimed at any time.

Using Wrapped OETH on Spectra

Follow the steps below to begin using Wrapped OETH on Spectra Finance:

Step 1: Acquire wOETH or OETH

To get started, acquire wOETH or OETH. You can swap ETH, WETH, or OETH to wOETH on Origin’s dApp at originprotocol.eth.limo by connecting your Web3 wallet.

Step 2: Connect to Spectra Finance

Visit Spectra Finance dApp and connect your Web3 wallet using the prompts in the top right corner.

Step 3: Select Your Strategy

Spectra offers three primary functionalities: Fixed Rates, Yield Trading, and Liquidity Provision.

• Fixed Rates (PT-wOETH)
  • Navigate to Fixed Rates.
  • Select the wOETH market.
  • Deposit OETH or wOETH to receive PT-wOETH at a fixed rate that satisfies your needs.
  • Hold PT-wOETH until maturity to redeem it 1:1 for wOETH.
• Yield Trading (YT-wOETH)
  • Navigate to Yield Trading.
  • Deposit OETH or wOETH to receive YT-wOETH.
  • Hold YT-wOETH to gain exposure to wOETH’s variable yield, with the collected yield being accumulated separately in the app and claimable anytime.
• Liquidity Provision (LP-wOETH)
  • Navigate to Liquidity Pools.
  • Deposit OETH or wOETH to receive LP-wOETH
  • Earn trading fees and APW incentives from the liquidity pool.

Benefits of Using wOETH on Spectra

Spectra’s integration of wOETH unlocks new financial use cases. You can earn stable yields through fixed rates, leverage variable yields through yield trading, and benefit from multiple yield streams as a liquidity provider. Another way to look at fixed rates is being able to obtain wOETH at a discount.

Additional Useful Tips from Spectra FAQ

• No Timelock: Both PTs and YTs can be sold before their maturity or expiry, either back to the pool or on secondary markets. The amount received depends on the available liquidity at the time of the transaction.
• Claiming Yield: The yield accumulated from holding YTs is collected separately within the Spectra App and can be claimed at any time, even after the YTs expire.
• Liquidity Provision: Spectra pools enhance OETH yield with new yield streams, such as the pool’s swap fees and APW incentives.

Stay updated on new opportunities by following Origin on X and joining our Discord server. View our DeFi Opportunities Page to find all the top OETH integrations across Ethereum and Arbitrum.