What started as a passive arbitrage strategy is now a DeFi-native yield asset.
Users who deposit into the stETH ARM receive ARM-WETH-stETH, Origin’s receipt token that represents users’ share of the vault. These tokens will be usable throughout DeFi, starting with yield trading on Pendle Finance.
The stETH ARM earns yield by arbitraging the stETH/ETH price. When stETH trades below its redemption value, the ARM buys it from the market and redeems it 1:1 through Lido’s withdrawal queue to profit from the spread.
When stETH holds a tight peg to ETH, idle ETH is held in Morpho to earn lending yield until market conditions shift. Now, depositors can stay exposed to the stETH arbitrage strategy while putting their ARM tokens to work across DeFi.
Holding ARM-WETH-stETH is a directional bet on the stETH discount rate. When stETH trades at high discount rates, ARM yield has earned up to 40% APY.
As integrations go live, users will be able to:
This unlocks a path to grow ARM TVL while keeping capital productive throughout the ecosystem.
ARM-WETH-stETH will soon be integrated across top DeFi protocols, expanding its utility beyond yield generation. Starting this week, users will be able to use Pendle to bet on stETH and OS peg stability by acquiring YT ARM tokens on Ethereum and Sonic.
We’ll also be rolling out integrations for ARM-WS-OS, the receipt token for the ARM S Vault that captures yield from arbitraging the OS peg on Sonic. Like ARM-WETH-stETH, ARM-WS-OS will be integrated into Sonic-native protocols and other yield layers, starting this week on Pendle Finance.
As TVL grows and integrations deepen, these strategies will strengthen OGN value accrual — with all fees from ARM vaults directed to OGN stakers.
You can now acquire ARM-WETH-stETH tokens by depositing to the stETH ARM, which is being integrated on DeFi protocols for yield trading, lending, and looping. ARM tokens arrive on Pendle tomorrow, enabling you to take directional bets on the stETH and OS peg.
