Borrow Booster: Expanding the Utility of LST Yield

Liquid staking tokens have unlocked a new era of yield in DeFi, but much of their potential remains untapped. At Origin, we’ve built mechanisms for programmable yield, forwarding staking rewards into new strategies that enhance efficiency and create additional value for participants. Borrow Booster is the latest extension of this framework — a product designed to direct LST yield toward lending markets, improving outcomes for both lenders and borrowers.

By forwarding Super OETH yield to incentivize lending markets, Borrow Booster subsidizes borrow rates, lowering the APR paid by borrowers and making leverage strategies more efficient. The result is a lending market with an automated and sustainable incentive system for borrowers.

The Mechanics of Yield Forwarding

Yield Forwarding enables yield from yield-bearing tokens to be redirected into external contracts where it strengthens incentives and improves efficiency. Instead of distributing yield directly to token holders, markets that implement Yield Forwarding utilize rewards from Origin’s yield-bearing tokens to create healthier market dynamics.

The first application of this mechanism was Pool Booster, which forwards yield to liquidity pool incentives. By doing so, Pool Booster enhances rewards for LPs, deepens liquidity, and supports healthier markets for tokens paired with OETH, Super OETH, and OS.

This model has proven effective in aligning incentives and creating more robust markets, and it sets the stage for extending Yield Forwarding into new areas of DeFi.

Driving Capital Efficiency with Borrow Booster

Borrow Booster applies the same principle to lending markets. By channeling yield to offset borrow rates, it reduces the cost of borrowing, stimulates demand, and enables more efficient leverage strategies than what’s available on WETH markets. The result is improved capital efficiency and healthier lending markets with sustainable incentives.

With Pool Booster and Borrow Booster, Yield Forwarding is proving its value as a mechanism that transforms passive yield into an active driver of growth across DeFi.

Borrow Booster Now Live on Morpho

Borrow Booster is debuting on Morpho, the leading protocol for isolated money markets in DeFi. The first market pairs Super OETH with USDC, curated by Yearn to ensure reliability and risk management.

In this market, Super OETH yield is forwarded directly to offset borrow rates on USDC. For borrowers, this means lower effective APRs and more efficient leverage opportunities. For lenders, it translates into stronger demand for credit and healthier utilization of capital.

Limited-Time Incentives Now Live on Morpho

To kick off Borrow Booster, the superOETHb/USDC market on Morpho is receiving weekly OP incentives. These rewards are distributed to both borrowers and lenders, creating an additional boost on top of the efficiency gains already provided by Yield Forwarding.

With OP incentives in play, participants can earn up to an extra ~3% APY on each side of the market. This limited-time program makes it even more attractive to supply and borrow, helping grow liquidity and accelerate adoption of the Borrow Booster model.

Getting Started

Borrow Booster is live today on Morpho in the Super OETH/USDC market, curated by Yearn. Borrowers can access reduced rates powered by Super OETH yield, while lenders benefit from stronger demand and more efficient use of capital.

Explore the Market on Morpho and see how Yield Forwarding is driving new efficiencies across DeFi.