Origin Ether earns yield from two sources:
Vanilla Staking: Origin allocates ETH to liquid staking tokens like stETH, rETH and frxETH to generate the vanilla staking yield. The Ethereum staking yield comes from network inflation, transaction fees and MEV. You can view the real-time vanilla ETH staking yield here.
Defi strategies: OETH utilizes an AMO strategy on Curve and Convex through the OETH-ETH pool. In doing so, Origin Ether accrues heightened trading fees and rewards tokens on top of validator rewards from the aforementioned LSTs.
The smart contracts generate yield by deploying the deposited collateral into trusted DeFi protocols such as Compound, Aave, Curve, Convex and Morpho. There may be new diversified strategies added to the vault in the future as approved by governance. Earned interest, trading fees, and rewards tokens are swapped and reinvested to produce yield on OTokens. Over time, the protocol will rebalance assets between different earning strategies in order to maximize yields. Users are able to benefit from faster compounding and rebalancing of assets as the farming costs are shared across the entire pool.
Origin Ether (OETH) is an ether-denominated token that earns yield from liquid staking tokens stETH, rETH, and sfrxETH. APYs are optimized between LSTs and liquidity provision strategies within DeFi. At launch, OETH utilizes an AMO strategy on Curve and Convex through the OETH-ETH pool. In doing so, Origin Ether accrues heightened trading fees and rewards tokens on top of validator rewards from the aforementioned LSTs.
Origin Ether earns yield from two sources:
Vanilla Staking: Origin allocates ETH to liquid staking tokens like stETH, rETH and frxETH to generate the vanilla staking yield. The Ethereum staking yield comes from network inflation, transaction fees and MEV. You can view the real-time vanilla ETH staking yield here.
Defi strategies: OETH utilizes an AMO strategy on Curve and Convex through the OETH-ETH pool. In doing so, Origin Ether accrues heightened trading fees and rewards tokens on top of validator rewards from the aforementioned LSTs.
The smart contracts generate yield by deploying the deposited collateral into trusted DeFi protocols such as Compound, Aave, Curve, Convex and Morpho. There may be new diversified strategies added to the vault in the future as approved by governance. Earned interest, trading fees, and rewards tokens are swapped and reinvested to produce yield on OTokens. Over time, the protocol will rebalance assets between different earning strategies in order to maximize yields. Users are able to benefit from faster compounding and rebalancing of assets as the farming costs are shared across the entire pool.
We strive to make staking as safe and transparent as possible, however, it’s important to consider factors that may influence whether a particular staking option is appropriate for you:
Smart Contract Risk: There is an inherent risk that the protocol could contain unknown bugs. This not only applies to staking but your OETH investment in general.
Third-party Platform Risk: OUSD and OETH are built on DeFi platforms like Aave, Compound, and Curve which carry smart contract risks. Despite these platforms managing billions in assets, their function is not guaranteed and failures could lead to fund losses.
Collateral Risks: The value OETH depends on its collateral’s stability. Any devaluation of the LSTs can impact OUSD or OETH. Remember that each stablecoin has non-trivial counter-party risks. Centralization and slashing risk are significant with LSTs that act as OETH collateral.
Regulatory Risk: Legal interference is a potential risk, as observed from the recent Oasis case. While OUSD or OETH have no backdoors for unauthorized access, in extreme cases, contract upgrades might be forced against our will. A timelock acts as a defense in such scenarios, allowing withdrawal before effect.
Risk Mitigation: We employ regular audits, code reviews, automated checks for common errors, and disable minting of devalued assets to minimize risks. We also offer DeFi insurance for smart contract coverage and encourage community monitoring of proposals.
Proof of Trust: Origin team members and the company treasury have significant investments in OUSD, indicating our trust in the systems we’ve built
Origin Ether (OETH) is an ether-denominated token that earns yield from liquid staking tokens stETH, rETH, and sfrxETH. APYs are optimized between LSTs and liquidity provision strategies within DeFi. At launch, OETH utilizes an AMO strategy on Curve and Convex through the OETH-ETH pool. In doing so, Origin Ether accrues heightened trading fees and rewards tokens on top of validator rewards from the aforementioned LSTs.
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