Generating one of the best in-class risk-adjusted yields for ETH, with a 30-day trailing average above 4%, Origin Ether (OETH) has attracted thousands of ETH deposits since its launch in May. Not only does OETH achieve elevated yields compared to vanilla staking strategies, OETH does it with diversified and battle-tested strategies.
Furthermore, OETH has additional functionalities such as instant redemptions, on-chain proof of yield, protocol-guaranteed liquidity, and auto-compounding yield to holders’ wallets, with no staking or lock-ups required.
In this article, we dive into OETH’s integration with Curve, explaining how it enhances the product for users.
Curve Finance is a decentralized exchange that allows users to trade assets on the platform, or provide liquidity for traders with its automated market maker (AMM) algorithm. Via the AMM, liquidity providers quote asset prices for traders, allowing them to buy or sell at certain prices. In return, liquidity providers earn a fee and may receive CRV tokens as rewards for providing liquidity.
Curve’s algorithm is extremely efficient in quoting prices between two highly correlated assets, hence its popularity in use for stablecoins such as USDC and USDT. Other than USD stablecoins, this functionality extends to tokens such as ETH, stETH, and OETH.
By incorporating Curve and Convex, a protocol built on top of Curve, OETH’s strategies are able to earn trading fees and protocol token incentives in the form of CRV and CVX when providing liquidity on the platform. With a proprietary strategy called the algorithmic market operations controller (AMO), OETH is able to premint additional OETH into the OETH/ETH pool, increasing yield and maintaining liquidity in the pool. You may read more about the strategy here.
Unlike strategies that require deposit lock-in times or waits in the unstaking queue, OETH can be swapped for ETH at any time, effectively acting as a high-yield ETH savings account that users can access readily.
Additionally, by deploying protocol-owned liquidity into Curve, OETH maintains a high amount of asset liquidity, which opens the potential for integrations within DeFi lending applications that require liquidity to liquidate bad debt before onboarding assets as collateral.
Origin Dollar (OUSD), and OETH can be used to provide liquidity in Curve pools to earn trading fees and CRV rewards. However, most users prefer to rely on OETH automated rebalancing and compounding, as it saves users’ transaction fees and allows them to passively stack ETH or USD.
By integrating ETH and deploying strategies with Curve, and Convex, OETH is able to rebalance between the battle-tested strategies that provide the best risk-adjusted yield at any one time.
Origin is building the foundations to onboard the next generation of users into Web3. By creating applications that are accessible to everyone, while being safe and simple to use, internet-natives will feel right at home using Origin’s product suite. Anyone with a Web3 wallet and an internet connection can access OETH to earn yield.
We are excited to continue innovating alongside our ecosystem of partners building applications, tooling, and infrastructure for Web3!
