An Update to the Origin and Aerodrome Communities Regarding Super OETH

What We’ve Achieved With Super OETH In Phase I:

We have big ambition for Super OETH: to introduce a new class of Supercharged LSTs on L2s that offer users deep liquidity, an extremely tight ETH peg, and increased yield.

We’ve successfully brought this vision to life on Base through our integration with Aerodrome. In just its first three months Super OETH has accomplished:

• Significant User Adoption: Secured $162 million (45,000 WETH) of deposits into Super OETH from over 5,000 users.
• Integrations & Protocol Adoption: Reached a total market size of $45 million for Super OETH in Base’s lending markets.
• Deepest Liquidity on Base: Achieved the highest TVL liquidity pool not only on Aerodrome, but on Base as a whole.

And this is just phase one of our roadmap.

Our team has been hard at work on phase two of our roadmap, which harnesses Yield Forwarding. Yield Forwarding is a new feature that allows yield from Super OETH, OETH, and OUSD held in smart contracts to be forwarded to a designated address.

This has a killer application when it comes to growing an AMM, and we envisioned launching it on Aerodrome.

Imagine the yield from Super OETH in any Aerodrome pool being used to automatically incentivize that pool. This design is extremely bullish for the Aerodrome ecosystem as it would increase pool APRs and attract liquidity across a wide range of assets. It would also mean a constant stream of incentives flowing from mainnet Ethereum staking rewards to veAERO holders.

Aerodome Guidelines Update:

On November 21st, Aerodrome published its new guidelines for AERO incentives, impacting all projects integrated with Aerodrome’s AMM.

As part of the new guidelines:

• There are limitations on how much we can incentivize. Projects utilizing AMOs such as ours have been most heavily impacted. It’s worth noting that while there are many misunderstandings about AMOs, they are highly valuable to users and AMMs as they provide deep liquidity and near-perfect ETH peg.
• Super OETH is not yet considered a connector token. Super OETH pools can only be incentivized when they are paired with a connector token.

What This Means for Super OETH and veAERO Holders:

• Fewer incentives flowing from Super OETH to veAERO holders
• Super OETH yield is expected to decrease in the near term yet remain higher than normal LSTs
• Yield Forwarding is only applicable to a small subset of potential Aerodrome pools, limiting its ability to attract liquidity to Aerodrome, increase pool APRs, and distribute Ethereum staking yield to veAERO holders.

Looking Ahead

We are working in close collaboration with the Aerodrome team on a path forward that abides by the new guidelines.

Steps are being taken to ensure Super OETH qualifies for connector token status, unlocking the full potential of Yield Forwarding to generate substantial value for both the Origin and Aerodrome communities.

We remain committed to our vision for Super OETH across L2s and the massive potential of Yield Forwarding across OUSD, OETH, and Super OETH.

We will be pushing forward the development of Super OETH and Yield Forwarding across DEXs and L2s where they can combine to create virtuous flywheel effects.

Thank you for trusting us on this journey. Together, we will continue to shape the future of liquid staking on Base and beyond.

Sincerely,

The Origin Protocol Team