Origin Ether has grown into one of Origin’s most popular offerings, providing holders with better yield and a tighter ETH peg than other LSTs. Since its launch last year, Origin Ether has accrued over $125M in TVL and secured dozens of integrations on both Arbitrum and Ethereum.
Yield generation, security, and liquidity are key factors that make OETH the most competitive LST on the market. Let’s delve into how Origin Ether earns substantially higher yield than other LSTs, maintains deep liquidity, and upholds industry-leading security standards.
Origin Ether’s yield has consistently outperformed stETH, rETH, and sfrxETH since inception. Its unique design allows OETH holders to earn yield from both liquid staking and ancillary rewards, including liquidity provision revenues and additional token incentives.
Distributed Validator Technology (DVT) ensures that validator keys remain decentralized, allowing Ethereum to scale without compromising security. With DVT implementation via the SSV network, OETH is shielded from centralization risks.
ETH reserves are staked to the Beacon Chain using distributed validator technology (DVT), creating a fault tolerant and decentralized staking setup. Origin Ether is integrated with ssv.network to leverage DVT, the leading protocol for distributed validator technology with over $3 billion in total value locked.
OETH earns SSV token incentives through its DVT integration. Staking yield is boosted up to 40% through ssv.network, which directly translates into more yield for Origin Ether holders. SSV tokens are harvested for OETH, which is distributed to holders through the token’s rebasing mechanics.
Origin uses Algorithmic Market Operations to provide deep liquidity for OETH on Curve. With up to 2x higher capital efficiency than traditional liquidity provision, the Curve AMO earns yield from harvesting trading fees and rewards tokens for Origin Ether holders.
Earnings are further boosted by token incentives on Curve’s OETH/ETH liquidity pool. The OGN DAO uses its war chest of CRV/CVX to direct CRV incentives to Curve’s OETH liquidity pool, which is then farmed by the Curve AMO.
Origin Ether holders also benefit from the deep liquidity provided by the Curve AMO. Protocol-owned OETH is used in the liquidity pool to maintain the pool’s balance, minimizing slippage on OETH/ETH trades. With $42 million in TVL currently in the pool, users can swap out of OETH at less than 0.12% slippage on swaps up to 1,000 OETH.
For multi-million dollar exits, better rates can be achieved through direct redemptions or Automated Redemption Manager swaps, which are outlined below.
Earlier this year, we launched the beta version of Origin’s Automated Redemption Manager (ARM) to provide zero-slippage swaps on redeemable assets, starting with Lido’s stETH. Even in its beta, the Automated Redemption Manager has accrued over $400 million in volume through its integrations on 1inch and CoWSwap.
Origin Ether will be the second asset supported by the Automated Redemption Manager, with special privileges for the OETH ARM pool that will guarantee instant, 1:1 swaps back to ETH. The OETH/ETH ARM pool will have zero-fee, zero-slippage swaps on OETH, ensuring OETH can be instantly redeemed for ETH at a 1:1 rate.
Direct redemptions for Origin Ether are supported on the Origin dapp, allowing users to redeem their OETH for its underlying collateral. The redemption fee, paid to OETH holders, is currently set to 0.1%, with plans to reduce this fee to zero in the coming weeks.
Instant, 1:1 redemptions back to ETH are important to secure integrations with top protocols. Several protocols hold large amounts of ETH that could earn yield through liquid staking, but these apps need to ensure that the LST they hold can easily be redeemed for ETH without loss. By enabling zero-fee redemptions for Origin Ether, OETH will become the superior LST for protocol integrations.
Further, the OETH pool on the Automated Redemption Manager will directly impact Origin Ether’s peg to ETH. Since arbitragers can currently redeem their ETH for a 10 basis point fee, OETH commonly trades between 0.999 and 1.0 ETH. Once this fee is removed and instant redemptions are enabled by the ARM, we anticipate OETH to hold a tight, 1:1 peg to ETH across all exchanges.
A tight peg to ether has several benefits to both protocols and end users. OETH holders can confidently leverage their OETH on money markets, such as Morpho, knowing that their tokens will closely follow the price of ETH. By minimizing peg volatility, liquidation risks on lending platforms become far less of a concern. From a protocol perspective, OETH integrations become more accessible as depegging risks are minimized.
Origin Ether is audited by top security firms including OpenZeppelin, TrailofBits, and Solidified. Our continuous auditing agreement with OpenZeppelin ensures that code changes are reviewed externally, helping minimize smart contract risk on our products. OpenZeppelin is one of the most trusted security firms in crypto, auditing platforms like Coinbase, Aave, and Ethereum.
Beyond external audits, Origin employs rigorous internal code reviews that must be conducted by at least two core team engineers. We’re proud to have some of the top leaders in Ethereum security on Origin’s team, as we hold an extremely high bar for smart contract security.
Origin Ether has already accelerated its integrations on both Ethereum mainnet and Layer 2s. Wrapped OETH is now integrated with Morpho and Silo money markets, enabling leveraged staking yield through looped wOETH. Users will soon have even more optionality for OETH yield generation through new DeFi integrations, building off Origin Ether’s success on applications like Pendle and EigenLayer.
Expansion is further supported by Origin’s token merger, which concentrates the team’s resources on building out OETH, new multi-chain yield products, and the recently announced Automated Redemption Manager.
OGN accrues value from Origin’s products, which is detailed in a recent tokenomics proposal. Starting with OETH and OUSD, OGN earns performance fees which are used for token buybacks. Further, half of these performance fees are used to accumulate flywheel tokens (currently CVX) to increase yield on Origin Ether’s AMO strategy.
