Origin’s Automated Redemption Manager (ARM) is now live on Sonic.
Built to capture yield from LST peg volatility, Origin’s ARM offers depositors a low-risk, passive yield strategy. At the same time, it helps stabilize the market by defending the pegs of major tokens like stETH and OS.
This is Origin’s next ARM deployment, following the successful launch of the ARM ETH Vault on Ethereum, which supports the stETH peg. The ARM S Vault applies the same redemption-based strategy on Sonic, supporting the OS peg while leveraging new efficiencies unique to Sonic’s architecture.
Origin’s ARM earns yield by arbitraging LST prices during times of volatility. When OS trades at a discount, the ARM S Vault purchases OS on AMMs and deposits it to the Sonic staking withdrawal queue. Once the tokens are redeemed 1:1 for S, the process repeats—generating low-risk yield in the process.
By offering the best rates for OS swaps, the ARM S Vault captures volume from DEX aggregators. The ARM S Vault is integrated with OpenOcean at launch and will soon be supported by Kyber – two of the leading DEX aggregators on Sonic.
Unlike the ARM ETH Vault on Ethereum, the ARM S Vault increases its capital efficiency with lending market integrations. In stable market conditions, the ARM routes idle S liquidity to Silo’s lending markets to earn additional yield. This makes the Sonic ARM more capital efficient than its Ethereum counterpart, unlocking additional upside for depositors even during low-volatility periods.
Withdrawals from the ARM are processed on demand when liquidity is available. However, because LSTs must be redeemed through Sonic’s withdrawal queue, redemptions may take up to 14 days during times of high activity.
The ARM S Vault is now open for deposits on the Origin Dapp.
The vault accepts deposits in S and auto-executes the OS redemption loop—no management required. Just deposit and earn.
By depositing to the ARM S Vault, users gain access to a low-risk, passive yield strategy on Sonic. During times of OS volatility, the ARM uses your deposit to buy OS—strengthening the peg and earning yield in the process.
Visit the Origin Dapp to get started with the ARM S Vault and put your S to work.
