Arbitrum is a leading layer 2 network that makes using decentralized finance, or DeFi, easier and cheaper. DeFi lets you do things with your crypto like earning interest, borrowing, lending, and trading without needing a bank or other middlemen. Arbitrum helps make these activities even faster and less expensive by improving the way transactions are processed. This makes it a popular choice for people who want to use DeFi.
But what are the best DeFi protocols on Arbitrum? And how do they compare to Ethereum? We’ll explore exactly that in the sections below. But first, let’s get clear on what a DeFi protocol is in general.
A DeFi protocol is a set of rules written into code that enables users to do things like lend and borrow crypto without intermediaries. These rules are called smart contracts, and they run on blockchains.
With DeFi protocols, you can trade tokens, lend your crypto to earn passive income, or borrow tokens by using some of your crypto as collateral. For this reason, these kinds of protocols are sometimes called DeFi lending protocols.
Everything happens without needing a bank or other financial institution. This makes DeFi lending platforms and blockchain technologies accessible to anyone with an internet connection, unlike more traditional financial lending and borrowing platforms.
There are different kinds of DeFi protocols on Arbitrum, each helping to make the DeFi ecosystem work smoothly. Here are some of the main types:
Automated Market Makers are protocols that let you trade tokens directly with a smart contract. In other words, you don’t have to use a traditional exchange to trade crypto. AMMs, also known as DEXs, use pools of tokens to set prices and make trading easy and fast. When you trade tokens on an AMM, you swap them with tokens in a liquidity pool.
For example, if you want to trade ETH for USDT on an AMM like Uniswap, you put your ETH into the pool and take out the equivalent amount of USDT. The smart contract handles the trade instantly, based on the tokens’ current price. It’s a quick and straightforward process.
Lending protocols let you lend your crypto assets to others to earn interest. They also allow you to borrow crypto by putting up your own assets as collateral. Decentralized lending is a great way to make your crypto work for you and earn passive income.
For instance, if you have ETH and you want to earn interest, you can lend it on a platform like Aave. You’ll get interest payments from borrowers who use your ETH as a loan, and you can also borrow other assets by using your ETH as collateral.
Liquidity provision involves sending your tokens to a liquidity pool so others can trade with them. In return, you earn a share of the trading fees. This helps make trading easier and more efficient for everyone using the protocol. By providing liquidity, you help keep the market active and earn rewards for your participation.
For example, if you provide liquidity to a USDC-DAI pool on Curve, your tokens are used for trades between USDC and DAI. As a liquidity provider, you earn a portion of the trading fees each time someone trades in the pool, which can add up to a nice passive income over time.
Now let's look at some of the best DeFi protocols you can use on Arbitrum. These protocols make it easy to trade, lend, and earn rewards with your crypto.
Silo Finance is a next-generation DeFi protocol on Arbitrum that helps you manage and optimize your crypto assets. It functions as a lending market that doesn’t expose users to risks beyond their own positions and token holdings.
With Silo Finance, you can stake your tokens, provide liquidity, and earn interest all within a single platform. This protocol is highly efficient, making it a great choice for users looking to maximize their crypto earnings.
Dolomite is a hybrid money market protocol on Arbitrum that combines lending and margin trading functionalities. With over $50 million in total value locked (TVL), Dolomite is rapidly growing and becoming one of the top markets on Arbitrum for lending digital assets.
Users can lend their Wrapped OETH (wOETH) and benefit from incentivized annual percentage rates (APRs). Dolomite also plans to introduce features allowing up to 5x leverage on trades. This would provide users with even more opportunities to grow their assets.
Gyroscope is a unique DeFi protocol on Arbitrum that specializes in creating efficient liquidity pools. It uses a unique mechanism to reduce slippage and impermanent loss. This makes it a more secure and profitable environment for liquidity providers.
By integrating with Arbitrum, Gyroscope supports faster transactions and lower fees. This means it’s a versatile option for trading and earning rewards with wOETH and other tokens. Providing liquidity in Gyroscope pools, especially with wOETH, can also yield substantial returns due to additional incentives like ARB and BAL tokens.
Arbitrum protocols and Ethereum protocols are pretty similar because Arbitrum is EVM compatible. This means many of the same protocols work on both networks. The big difference is that Arbitrum is faster and cheaper than Ethereum mainnet. This is because Arbitrum processes transactions more efficiently, reducing the costs and time involved.
On Arbitrum, you can use many of Ethereum’s best DeFi protocols like Uniswap and Aave, and they often work better because of the improved speed and lower fees. This means you can trade tokens, lend crypto via flash loans, and earn rewards more easily and cost-effectively.
While both networks offer great DeFi opportunities, Arbitrum's lower fees and faster transactions make it an attractive choice for users looking to maximize their returns without spending too much on gas fees.
By choosing Arbitrum, you get the benefits of Ethereum's robust DeFi ecosystem with the added advantages of a more efficient network. Many users choose to use both networks to some extent, as diversification is often a good practice for risk management.
Wrapped Origin Ether (wOETH) is expanding its integrations on both Ethereum and Arbitrum, providing users with more opportunities to earn high yields in DeFi.
One of the main ways to use wOETH on Arbitrum is by providing liquidity in Gyroscope’s pools. By depositing wOETH and ETH into these pools, users can earn substantial rewards from trading fees, staking yields, and additional incentives like ARB tokens.
To get started, first acquire Wrapped OETH (wOETH) on Arbitrum. You can do this by bridging ETH or Origin Ether to wOETH through the Origin dapp or by swapping ETH for wOETH on Balancer if you already have funds on Arbitrum.
Next, connect your wallet to the Gyroscope dapp and navigate to the wOETH-ETH liquidity pool. Deposit your tokens into the pool to start earning yield. You’ll begin earning rewards immediately, which can range from 8.97% to 11.58% APR, plus additional incentives.
In addition to Gyroscope, you can use wOETH on other DeFi platforms like Dolomite for lending and borrowing. By supplying wOETH as collateral on Dolomite, you can borrow WETH and take advantage of competitive loan-to-value (LTV) ratios. This flexibility allows you to leverage your OETH to maximize your returns across multiple DeFi protocols on Arbitrum.
Using Arbitrum protocols can be highly beneficial due to the network's lower transaction fees and faster processing times compared to Ethereum. These advantages make it easier and cheaper to perform DeFi activities like trading, lending, and providing liquidity. For users looking to maximize their returns, Arbitrum provides a more efficient and cost-effective alternative to the Ethereum mainnet.
However, it’s important to be aware of the risks involved. While Arbitrum offers improved performance, DeFi activities still carry risks such as smart contract vulnerabilities, market volatility, and liquidity risks. Always do thorough research and consider your risk tolerance before participating.
Overall, if you’re looking to get more out of your DeFi activities, using Arbitrum protocols is worth considering. The network's enhanced performance and lower costs can help you achieve better returns on your crypto investments. With Origin Ether's integration on Arbitrum, you can take advantage of these benefits and maximize your yield opportunities.
If you’d like to get started, we recommend reading our guide on how to use wrapped OETH on Silo Finance via Arbitrum.
What is Wrapped OETH and how can I use it on Arbitrum?
Wrapped OETH is a liquid staking token that can be used on Arbitrum for earning high yields. You can use wOETH by providing liquidity in Gyroscope’s pools or lending it on platforms like Dolomite. These activities help you earn rewards and maximize your returns.
How do I provide liquidity with wOETH on Arbitrum?
To provide liquidity with wOETH on Arbitrum, first get wOETH through the Origin dapp or swap for it on Balancer. Next, connect your wallet to the Gyroscope dapp and deposit wOETH and ETH into the liquidity pool. This lets you earn rewards from trading fees, staking yields, and extra incentives.
Why should I use Arbitrum protocols over traditional banking or lending services?
Arbitrum protocols are faster and cheaper than traditional banking or lending services. They allow you to earn higher returns and use advanced DeFi strategies that aren't available in traditional lending. This makes Arbitrum a great choice for maximizing your crypto earnings.
Liquid staking has become a popular choice for crypto investors who want to earn rewards while keeping their digital assets liquid. However, many still wonder if it's truly a safe option.
In the sections below, we'll walk you through what liquid staking is, the risks involved, and how some liquid staking tokens (LSTs) like Origin Ether (OETH) minimize those risks to provide a safer experience. We’ll also compare liquid stakings pros and cons to other DeFi options.
Liquid staking allows you to stake your crypto and earn rewards while keeping your capital liquid. In other words, the “liquidity” liquid staking is known for is one of its biggest benefits.
When you stake your tokens using traditional methods, they are locked up, meaning you can't use them for anything else. Liquid staking protocols change that by giving you a "liquid" token that represents your staked asset. You can trade, lend, or use these liquid tokens in other decentralized finance (DeFi) activities while still earning staking rewards.
For example, if you stake ETH using a liquid staking protocol, you receive a liquid staking token (LST) like OETH in return. You continue to earn rewards from Ethereum staking, and you can use your OETH across DeFi platforms without needing to forgo staking rewards.
Using a liquid staking platform offers flexibility, but it comes with its own set of potential risks from smart contract vulnerabilities to volatility. One of the biggest risks is the possibility that liquid staking tokens could lose their peg to the underlying asset. This is known as de-pegging, or peg stability risk.
For example, if a liquid staking token loses its 1:1 peg with ETH, it might not be able to hold 100% of its ETH value. Peg stability can also be affected by market demand or extreme conditions in the DeFi space.
However, some tokens like OETH minimize this risk by offering instant liquidity and maintaining a strong peg with 100% ETH collateral backing it.
Liquidity is another important factor. If there aren’t enough buyers or sellers in the market for a liquid staking token, it could become hard to trade or sell it. This is especially concerning for liquid staking tokens without support for direct collateral redemptions.
OETH ensures deep liquidity through its Curve pool, where users can swap OETH and ETH easily, reducing liquidity concerns. Direct redemptions through the Origin Dapp are also supported, assuring users they can redeem OETH for its underlying collateral.
Lastly, it’s worth mentioning that in proof-of-stake (PoS) blockchains, validators can lose a portion of their staked assets if they act against the network's rules. This is a process known as "slashing." When slashing occurs, liquid staking token holders can be affected because their staked assets might be reduced. OETH helps minimize this risk by using Distributed Validator Technology (DVT). OETH’s DVT spreads the responsibility across multiple validators, making slashing events far less likely.
Overall, the risks of liquid staking tokens are generally considered low, especially when compared to other DeFi investments. However, the risks associated with liquid staking tokens also vary depending on the specific tokens and DeFi protocols you choose.
For example, both OETH and Lido's stETH are viewed as low-risk options due to their strong infrastructure, deep liquidity, and measures in place to minimize slashing and peg stability risks.
OETH, in particular, stands out for its 1:1 backing by ETH, instant liquidity on the Curve pool, and use of DVT. These features make it a secure option for anyone interested in liquid staking.
Liquid staking has its pros and cons. But you should know that it’s not the only way to earn rewards in the DeFi space. Here’s how it compares to other DeFi strategies:
Liquid staking and yield farming are both popular ways to earn rewards in DeFi, but they operate quite differently. Liquid staking involves securing a network by staking tokens and earning rewards as a part of the network's security mechanism.
In contrast, yield farming involves providing liquidity to decentralized exchanges (DEXs) or lending protocols, where rewards come from transaction fees and token incentives. While yield farming can sometimes offer higher rewards, it can carry risks like impermanent loss, where the value of your staked tokens changes unfavorably due to price volatility.
Plus, yield farmers are often exposed to more frequent market fluctuations, making it less stable than liquid staking. Liquid staking, on the other hand, generally provides more consistent returns, as rewards are tied to network activity rather than market conditions.
In DeFi lending, you earn interest by loaning out your assets to borrowers, who then pay interest on the borrowed funds. Lending can be appealing because of the stable returns it offers, particularly when lending out stablecoins.
However, lending also involves smart contract risk; if the code can be exploited, you may not get your full investment back. Liquid staking, by contrast, allows you to earn staking rewards without significant smart contract risk, which gives you greater flexibility to withdraw or move your assets if necessary.
Additionally, liquid staking generally offers network-based rewards, making it less reliant on borrower behavior and providing a more predictable income stream.
Trading is a more active strategy in DeFi, where users aim to profit from market fluctuations by buying low and selling high. While trading can potentially yield quick profits, it requires continuous market monitoring, and there is a high risk of loss due to volatility.
Liquid staking, however, offers a passive income stream by earning rewards tied to network security, which are less impacted by daily market swings.
Another key advantage of liquid staking is that it keeps your funds accessible, allowing you to take advantage of new opportunities in DeFi applications without needing to trade actively. This flexibility and reduced exposure to market risk make liquid staking a more attractive option for users seeking consistent returns over time.
Participating in liquid staking can be an excellent choice for many investors, especially those who want to earn rewards without locking up their assets for long periods. It offers a unique balance between earning staking rewards and maintaining liquidity, but like any investment, it’s not without its risks.
To recap the two biggest risks:
One key consideration is the potential for depegging. Liquid staking platforms issue tokens that represent your staked assets, and while these tokens are designed to maintain a one-to-one value with the original asset, extreme market conditions or low liquidity can cause them to temporarily lose their peg.
Additionally, the security of the platform itself is crucial. If a platform lacks robust safeguards against hacking or mismanagement, users could face significant losses. Slashing, while less common in liquid staking than traditional staking, can still occur if validators behave maliciously or fail to perform properly. This makes choosing a platform with protections against slashing, like Origin Ether (OETH), vital.
Luckily, there’s a solution for these risks:
OETH helps minimize these risks with its strong peg stability, deep liquidity, and built-in slashing protections. It also integrates seamlessly with DeFi, allowing you to use your staked tokens in other financial strategies while still earning staking rewards.
Bottom line? By staying informed, assessing the platform’s security measures, and considering your own risk tolerance, liquid staking can be a flexible and rewarding way to grow your crypto holdings without sacrificing access to your assets.
You can learn more about OETH by clicking here.
How Can I Tell if A Liquid Staking Token Is Safe?
To determine if a liquid staking token is safe, check the liquidity, total value locked (TVL), and whether it has undergone security audits. Liquid staking enables users to stake assets while maintaining flexibility, but ensuring that node operators and protocols are secure can help minimize risks.
Is Direct Staking Safer than Liquid Staking?
Direct staking, or traditional staking, might seem safer since it reduces counterparty risk, but liquid staking offers more flexibility. Both methods use proof of stake (PoS) networks, and with proper precautions, liquid staking can be just as secure.
What are the main risks of liquid staking?
The main risks of liquid staking include peg stability, liquidity, and slashing. Peg stability issues arise if a liquid staking token (LST) loses its 1:1 value with the underlying asset, which could affect its redeemability. Choosing a secure LST like Origin Ether (OETH), which provides strong peg stability, deep liquidity, and slashing protection through Distributed Validator Technology (DVT), can help minimize these risks.
Is liquid staking better than yield farming or lending?
Liquid staking offers consistent rewards based on blockchain network security, while yield farming and lending can sometimes offer higher returns but come with added risks, like impermanent loss in farming or borrower default in lending. Unlike lending, where funds are tied up in loans, liquid staking keeps your tokens accessible, allowing you to participate in other DeFi opportunities. These benefits of liquid staking make it an attractive option for those seeking steady returns and flexibility without the high volatility of trading or the risks of yield farming.
Cryptocurrencies like Bitcoin and Ethereum use consensus protocols to keep their networks secure and running smoothly. Consensus protocols are key to decentralization, as it creates a source of truth for valid and invalid transactions.
One of the most popular types of consensus protocols in crypto today is Proof of Stake (PoS).
In this article, we’ll walk you through what Proof of Stake is, how it works, and how it compares to another consensus protocol called Proof of Work (PoW).
We'll also look at how you can earn staking rewards on Ethereum and whether staking is a worthwhile investment option.
A consensus protocol or consensus mechanism is a set of rules that helps stakers or miners agree on the validity of transactions.
In a decentralized network, there’s no single person or company in charge. Instead, the network relies on many computers (also called "nodes") to verify and record transactions.
These computers must come to an agreement, or "consensus," on which transactions are legitimate before adding them to the blockchain. Consensus protocols help these nodes stay in sync and maintain the integrity of the network.
For example, let’s say someone sends 1 ETH to a friend. All the nodes in the Ethereum network need to check and confirm that the sender has enough ETH in their wallet, and that the transaction follows the rules. Once enough nodes agree, or reach "consensus," the transaction is added to the blockchain, and the transfer is complete. If the nodes didn’t follow a consensus protocol, there would be no way to make sure the transaction was valid, and the network wouldn’t be reliable.
Consensus protocols make decentralized networks secure and trustworthy by ensuring that all participants are following the same rules. Whether it's for sending cryptocurrency or creating new blocks in a blockchain, these protocols are essential for keeping everything running smoothly.
Proof of Stake (PoS) is a type of consensus protocol used by many cryptocurrencies, including Ethereum. In a PoS system, validators (people who help confirm transactions) are chosen to verify transactions based on how much cryptocurrency they “stake” as collateral. The more tokens you stake, the higher your chance of being selected as a validator.
When you stake your tokens, they’re locked up and used to help secure the network. If you act honestly and verify transactions correctly, you earn rewards in the form of more cryptocurrency. However, if you try to cheat the system, you could lose some or all of your staked tokens as a penalty. This process is known as "slashing."
Investors often use large amounts of staked cryptocurrency to earn passive income. We’ll discuss how this works with a proof of stake system like Ethereum in a section below.
Proof of Work (PoW) is another type of consensus protocol used by older cryptocurrencies like Bitcoin. In a PoW system, validators (called "miners") must solve complex math problems to confirm transactions and add them to the blockchain.
Miners compete against each other to be the first to solve these problems, and the winner gets to add the next block of transactions to the blockchain. As a reward, they earn cryptocurrency, but solving these problems requires a lot of computer power and energy. This is why PoW is considered energy-intensive.
To help illustrate, imagine Bitcoin miners as people in a competition to solve a really tough puzzle. Each miner works on the puzzle using their computers, and whoever solves it first gets to write the next page (or block) in the Bitcoin ledger. As a prize for solving the puzzle, the miner gets Bitcoin rewards. However, the more miners compete, the harder the puzzles get, and the more energy their computers need to use.
Because PoW uses so much energy, it has faced criticism for its environmental impact. The high energy consumption is necessary to keep the network secure, but newer consensus protocols, like Proof of Stake (PoS), are designed to be more energy-efficient while still maintaining security.
The main difference between Proof of Stake (PoS) and Proof of Work (PoW) lies in how the protocols choose validators. In PoS, validators are chosen based on how many tokens they have staked, while in PoW, validators are chosen based on how much computing power they can contribute.
Proof of Stake cryptocurrencies are generally seen as more energy-efficient and environmentally friendly because they don’t require such vast amounts of computing power. On the other hand, PoW can be considered more secure by some because the high energy costs make it harder for bad actors to take over the network.
Both systems have their pros and cons, but PoS has become more popular in recent years, especially after Ethereum upgrades to this system.
Ethereum now uses Proof of Stake, which means that Ethereum holders can earn rewards by staking their ETH to help secure the network. There are different ways to earn staking yield on Ethereum, and we’ll cover two of the most common methods: solo staking and liquid staking.
Solo staking means that you set up and run your own validator node. To do this, you need to stake at least 32 ETH, or roughly $85,000 at the time of writing. The benefit of running your own validator is that validators receive rewards directly from the network for validating transactions.
However, setting up a validator requires technical knowledge, and if your validator goes offline or behaves incorrectly, you could lose some of your staked ETH. So while the economic incentives for solo staking can be very rewarding, it’s not for everyone because of the high amount of ETH required and the technical skills needed to manage the validator.
Liquid staking is a simpler way to stake your ETH without needing to run your own validator node. With liquid staking, you stake your ETH through a service provider, and in return, you receive a liquid staking token (LST) like Origin Ether (OETH). These tokens represent your staked ETH and can be used in other DeFi (Decentralized Finance) activities, like lending or trading.
Origin Ether (OETH) allows you to stake your ETH and earn rewards, but unlike solo staking, your ETH isn’t locked up. You can still use your OETH for other DeFi opportunities while earning staking rewards, making it a more flexible option for many users.
Staking is generally considered safe, but there are still some risks to keep in mind:
There’s also a risk if you use liquid staking tokens in other DeFi activities. If the token’s value drops or if there’s a sudden loss of liquidity, it could affect your investment. That’s why it’s important to choose reliable and secure platforms, like Origin Ether (OETH), which is backed by strong security measures.
What is Proof of Stake in Crypto?
Proof of Stake (PoS) is a consensus protocol where validators are chosen based on the amount of cryptocurrency they stake. By staking in staking pools, users help validate cryptocurrency transactions while earning rewards, all with less energy usage compared to Proof of Work.
Is Proof of Stake Safer than Proof of Work?
Proof of Stake is considered safer in some ways because it reduces the risk of double spending by requiring validators to have a stake in the network. However, both PoS and Proof of Work offer different security benefits depending on how they’re implemented.
Is Ethereum Proof of Stake or Proof of Work?
Ethereum used to rely on Proof of Work but has now transitioned to Proof of Stake. This change allows users to participate in staking, earn rewards, and help secure cryptocurrency transactions through staking pools.
Origin’s expansion to Base introduces a new class of Supercharged LSTs that accrue value to OGN. Super OETH will be the first token of its kind to offer high yield on ETH with minimal risk.
Instead of simply bridging Origin Ether to Base, we’ve designed a new supercharged LST that uses OETH as a building block for higher yields. Super OETH takes advantage of L2 incentives to enhance LST yield, earning far higher APYs than traditional LSTs. Our new product is crypto's first-ever supercharged LST, slated to launch on Base with additional L2s in the pipeline for this year.
Super OETH on Base will be assigned the ticker superOETHb. Read on to learn more about our new supercharged LST, our expansion plans, and what to expect leading up to our public launch.
As one of the fastest-growing Layer 2 networks, Base offers a robust infrastructure with a wealth of incentives designed to attract liquidity. This makes Base an ideal network for Super OETH, providing users with enhanced yield opportunities and access to a broad range of DeFi protocols. By starting on Base, Super OETH is positioned to capitalize on the network’s momentum while attracting a new category of users to both Super OETH and OGN.
Our broader goal is to establish Super OETH as the best LST on layer 2s by offering higher yield and deep liquidity. Following our launch on Base, Super OETH will roll out on Optimism with the ticker superOETHo.
Super OETH is built on top of Origin Ether and maintains many of the core properties of OETH. Like Origin Ether, Super OETH rebases directly in your wallet and holds an extremely tight peg to ETH. Additionally, Super OETH earns staking rewards from Origin Ether, further boosted by yield earned from its Aerodrome integration.
Super OETH generates Ethereum staking yield by leveraging OETH as its foundational asset.
Origin Ether is the core building block for Super OETH. Origin Ether’s Beacon Chain staking yield is bridged to layer 2s, enabling Super OETH holders to tap into LST yield. These rewards are then further enhanced by Super OETH's innovative LP integration, which leverages protocol-owned liquidity to earn L2 incentives. This allows users to earn Beacon Chain staking rewards on layer 2s while benefiting from the additional yield opportunities on these networks, maximizing their overall returns.
Super OETH integrates with Aerodrome to provide deep liquidity and enhanced yield.
Aerodrome will act as the central liquidity hub for Super OETH, offering deep liquidity on the superOETHb/WETH pair. Building on our learnings from protocol-owned liquidity on Origin Ether’s Curve pool, we’ve adapted this technology to integrate with Aerodrome.
This highly efficient LP integration utilizes protocol-owned liquidity on Aerodrome’s superOETHb/WETH pool to support Super OETH’s peg. By utilizing protocol-owned liquidity, Super OETH will keep a balanced liquidity pool, tracking the price of ETH at nearly 1:1.
As an additional benefit, Super OETH holders will receive increased yield from AERO rewards. When token incentives are earned through the Aerodrome integration, most of the AERO tokens are converted into superOETHb and added directly to the holders' wallets, compounding the yield earned. The protocol-owned liquidity significantly enhances capital efficiency, thereby increasing the rewards for the holders.
While Super OETH’s liquidity provision architecture will be applied to Aerodrome on Base, it’s designed to adapt to various L2 networks and AMMs, such as Velodrome on Optimism.
superOETHb will soft launch next week, with Super OETH yield to begin streaming shortly thereafter.
At launch, Super OETH will generate yield comparable to Origin Ether until token incentives begin accruing to Super OETH holders. We anticipate that Super OETH yield will gradually increase over the first few weeks, stabilizing in mid-September.
In addition, we’ve initiated conversations with leading Base protocols to integrate Super OETH. These integrations will give holders maximum flexibility to earn using their supercharged LST, further amplifying their rewards. Stay tuned to Origin on X as we secure integrations with lending markets, looping protocols, and beyond.
To stay in the know on our Super OETH launch, we invite you to join Origin’s Discord where we’re building DeFi’s 1st supercharged LST in public.
Wrapped OETH has integrated with Karak Network, a leading DeFi platform at the forefront of restaking innovation.
Since soft-launching in April, Karak’s TVL has catapulted to more than $1 Billion. The network offers multi-asset restaking, acting as a universal restaking layer to provide robust crypto-economic security across the space.
This integration affords wOETH holders a new opportunity to partake in restaking, and earn KARAK XP ahead of Karak’s full public launch and TGE.
Karak pioneers Universal Security, extending restaking beyond Ethereum to help secure a host of leading chains and protocols.
Users restake their assets – LSTs like wOETH, or even stablecoins and BTC – to the network. Distributed Secure Services (DSS) harness these assets to bolster security while also reducing operational costs. In turn, blockchains and rollups utilize DSS’s for more efficient operation. Restakers earn yield from protocols and chains harnessing restaked assets.
Karak remains in early access, so users will need invite codes to begin using the platform.
Users can start restaking by visiting app.karak.network. Enter an invite code to gain access, and connect your Web3 wallet to the dapp. Select wOETH, enter your desired amount, and click “Deposit” to proceed. Once the transaction is confirmed, you’ll begin to start stacking rewards for restaking.
Karak is rapidly approaching its current $1.1B deposit cap on all assets – make sure to restake soon to avoid being locked out.
Make sure to follow Origin on X and join our Discord server to stay updated on the latest integrations. Need a Karak invite code? We’ll be dropping some in Discord!
Origin Ether’s DeFi presence is expanding even further with two brand new pools on Fraxlend: wOETH/frxETH and wOETH/FRAX.
Deployed on Ethereum mainnet, the pools allow users to supply wOETH collateral and borrow frxETH and FRAX respectively. Users can take advantage of the pool's liquidity to loop assets via leveraged staking, which allows you to increase your exposure and earn maximum yield on the pair.
First, you’ll need to acquire wOETH on Ethereum. Unlike OETH itself, Wrapped OETH does not rebase. Instead, the token value increases to reflect accrued yield.
Head over to Origin’s dedicated dapp to get started. The swap page allows you to exchange ETH, WETH, or OETH for wOETH. Connect your Web3 wallet to the site and input your desired amount to swap. Once the transaction has been successfully executed, wOETH should reflect in your wallet.
Once you’ve loaded up your wOETH, visit the Fraxlend dapp and connect your wallet.
Each pool features a robust frontend, displaying key pool metrics from TVL to utilization and APRs for borrowing and lending.
Each pair features straightforward tabs for different use cases. Simply select “borrow” to deposit wOETH and borrow frxETH or FRAX, depending on your chosen pool. Alternatively, you can deposit wOETH via the “Add Collateral” tab to begin earning yield.
Looping Frax’s wOETH pools allows you to increase your position size, and thus compound returns. This approach entails depositing wOETH, borrowing frxETH or FRAX, and using these assets to purchase more wOETH, before repeating the process. Check out our leveraged staking guide for more details on this strategy.
This integration further bolsters Origin Ether’s diverse utility on leading money markets in DeFi. Holders can now harness Frax’s robust ecosystem and tap deep liquidity for rewarding DeFi trading strategies.
Make sure to follow Origin on X and join the official Discord server to keep up to date with the latest opportunities. View our DeFi Opportunities Page to explore all the leading OETH integrations across Ethereum and Arbitrum.
Origin Token (OGN) is Origin Protocol’s governance and value accrual token. OGN has a long history in DeFi, accruing protocol revenue from yield earned on Origin Ether (OETH), Super OETH (superOETHb), the Automated Redemption Manager (ARM), and Origin Dollar (OUSD).
You can buy Origin Token (OGN) on popular exchanges like Coinbase. Below, we’ll take a closer look at what OGN Token is, how it works in terms of both staking and governance, and the history and team behind it. Let’s dive in.
Users who stake OGN for xOGN are entitled to staking rewards derived from Origin’s products. Currently, OGN stakers earn rewards from revenue generated by OETH, Super OETH, OUSD, and the ARM.
Origin’s products feature a 20% performance fee on yield earned. For OETH and OUSD fees, this revenue is distributed to OGN stakers. Half of this fee is used to buyback OGN to add the the staking rewards pool, while the remaining half is used to accumulate DAO-owned flywheel tokens (currently CVX).
Flywheel tokens are used to incentivize liquidity pools for Origin Ether, further boosting yield earned by OETH holders. Across OETH and OUSD, the OGN DAO has accumulated over 275,000 CVX, and further incentives are sent to liquidity pools via bribes.
Assuming constant yield, protocol revenue increases proportionally to TVL added to the protocol. As adoption of OETH and OUSD increases, so does the value directed to OGN stakers.
Origin Token holders can stake their OGN to receive governance rights over Origin Protocol in the form of xOGN. Stakers can choose to lock their tokens for one month to one year, and those who stake for longer periods of time receive heightened governance rights to compensate for the duration of the lock. This is known as a lock up period.
By staking OGN, users essentially earn a share of protocol revenue generated from all of Origin’s products. OGN also lets stakers vote on proposals that shape the future of Origin Protocol. Those who hold xOGN vote on important decisions such as value accrual mechanisms, yield strategies, and design upgrades for Origin’s products. One example was the introduction of our Automated Redemption Manager (ARM).
Governance is integrated on the Origin Dapp, making it easy for stakers to weigh into governance proposals.
Origin Protocol was founded in 2017 to promote open, peer-to-peer commerce on Ethereum. The team began its journey developing marketplace technology, which gained popularity with the rise of the non-fungible token market. Alongside these developments, Origin invented the yield-bearing stablecoin with Origin Dollar (OUSD) in 2020. OUSD quickly gained traction among DeFi users looking to earn passive yield on their stablecoins with a simple user experience.
Origin Protocol launched its flagship LST, Origin Ether (OETH), in 2023. Origin Ether quickly grew to $100M+ TVL by offering a unique design that earns enhanced yield through its liquid staking and DeFi strategies. Origin Ether is currently available on Ethereum and Arbitrum, with support on top protocols such as EigenLayer, Pendle, Silo, Morpho, and beyond. Origin's dapp allows users to earn and mint OETH seamlessly using ETH or WETH.
More recently, Origin has launched Super OETH (superOETHb) on Base, becoming a top-10 protocol on the network with over $150 million in total value locked. Super OETH, the first Supercharged LST, offers enhanced staking yield via L2 incentives and is integrated with top protocols on Base.
Origin Protocol was founded by entrepreneurs Josh Fraser and Matthew Liu. The team is fully distributed, with roots on both the west and east coasts. Josh Fraser began his journey in crypto by mining Bitcoin on his laptop in 2011, while Matthew Liu has been involved in Ethereum’s ecosystem since its crowd sale in 2014.
The Origin team hails from big tech companies and web3 startups alike. Origin Protocol’s engineering team has deep experience with solidity development, security audits, and smart contract architecture. Team members at Origin Protocol have previously held leadership positions at Google, PayPal, Spotify, YouTube, Swell, and beyond.
The diverse expertise within the Origin Protocol team underscores a commitment to innovation and security in the decentralized finance space. By bringing together individuals with experience in both Web2 giants and Web3 pioneers, Origin combines the best of traditional tech and blockchain ingenuity.
The team's global presence also fosters collaboration across time zones, ensuring continuous development and support. Origin’s leaders and developers are passionate about building a more open and inclusive financial system, leveraging blockchain technology to empower individuals and institutions alike. With their proven track record, the Origin Protocol team is well-positioned to shape the future of decentralized finance and drive adoption of innovative crypto solutions.
The total supply of Origin Token (OGN) is 1,409,664,846. Of the 1.4 billion total supply, 607 million OGN is currently circulating.
Matthew Liu and Josh Fraser founded Origin Protocol in 2017. Matthew Liu was among the first employees at YouTube and has been involved in Ethereum’s ecosystem since its crowd sale in 2014. Josh Fraser is a serial entrepreneur, exiting his last company to Walmart Labs, and has been involved in crypto since 2011.
Origin Token (OGN) is listed across top exchanges including Binance, Coinbase, Kraken, Upbit, and Gate.io. You can also acquire OGN on decentralized exchanges such as Uniswap and 1inch.
OGN is an ERC-20 token, so most Ethereum wallets will support Origin Tokens. Ellipal, Ledger, and Trezor are some top hardware wallets that support OGN.
The Origin Token (OGN) contract address is attached to the originprotocol.eth ENS, and its full contract address is 0x8207c1FfC5B6804F6024322CcF34F29c3541Ae26.
You can stake OGN for xOGN on Origin’s dapp. Staking OGN allows you to earn protocol revenue from Origin’s product suite in the form of OGN rewards, depending on the amount staked and the duration.
Origin Token (OGN) is listed across top exchanges including Binance, Coinbase, Kraken, Upbit, and Gate.io. You can also acquire OGN on decentralized exchanges such as Uniswap and 1inch.
Spectra Finance integrates Wrapped Origin Ether (wOETH), unlocking new use cases for holders and allowing them to leverage its yield through innovative mechanisms. This guide explains the benefits and how to get started with wOETH on Spectra.
Spectra Finance, formerly known as APWine, is a protocol that tokenizes yield from interest-bearing tokens (iBTs) like OETH. It splits an iBT into two components: Principal Tokens (PTs) and Yield Tokens (YTs). The PT represents the principal value, while the YT represents future yield entitlement.
Spectra Finance enables traders to lock in APYs on yield-bearing assets and gain exposure to variable yields through YT. The three main components of Spectra Finance are highlighted below:
Follow the steps below to begin using Wrapped OETH on Spectra Finance:
To get started, acquire wOETH or OETH. You can swap ETH, WETH, or OETH to wOETH on Origin’s dApp at app.originprotocol.com by connecting your Web3 wallet.
Visit Spectra Finance dapp and connect your Web3 wallet using the prompts in the top right corner.
Spectra offers three primary functionalities: Fixed Rates, Yield Trading, and Liquidity Provision.
Spectra’s integration of wOETH unlocks new financial use cases. You can earn stable yields through fixed rates, leverage variable yields through yield trading, and benefit from multiple yield streams as a liquidity provider. Another way to look at fixed rates is being able to obtain wOETH at a discount.
Stay updated on new opportunities by following Origin on X and joining our Discord server. View our DeFi Opportunities Page to find all the top OETH integrations across Ethereum and Arbitrum.
Every month, the Origin team publishes an update to our token holders and the broader community. We hope you enjoy our July 2024 edition.
Get a birds-eye view on what Origin accomplished in July below.
Welcome back to another Token Holder Update! Over the course of July, Origin delivered on the DAO’s vision for a strengthened OETH, secured new yield opportunities on Arbitrum and Ethereum, and continued to expand the Automated Redemption Manager with nearly $500 million in volume since launching in stealth earlier this year.
Alongside these product and engineering developments, we’ve brought on new team members to help us build faster and bolster our community efforts. Some of our highlights from July include:
Without further ado, let’s delve into these developments and more in this month’s Token Holder Update.
New OETH yield mechanics make Origin Ether stronger, more composable, and higher yielding.
Last month, Origin Ether became a true liquid staking token after divesting its LST collateral and adding support for Beacon Chain staking. In doing so, OETH has become more integration-friendly, as its 100% collateralized by ETH and earns yield directly from Ethereum staking. We anticipate that Origin Ether’s design changes will act as a catalyst for integrations, evidenced by new money market support for OETH on Ethereum and Arbitrum.
Origin Ether integrates with ssv.network and P2P for Beacon Chain staking. In doing so, OETH leverages distributed validator technology (DVT) to make our staking setup more robust. DVT decentralizes validator keys, allowing Ethereum to scale without compromising security. For end users, DVT reduces centralization and slashing risks, helping provide higher risk-adjusted returns on OETH. Ssv.network also incentivizes the use of DVT by offering SSV token incentives, which are harvested as extra yield for OETH holders.
Asynchronous, zero-fee OETH redemptions are coming soon, and once supported, instant redemptions will be powered by Origin’s Automated Redemption Manager for 1:1 swaps back to ETH.
We believe that instant redemptions to ETH will significantly improve Origin Ether’s positioning in liquid staking. Powered by the ARM, this innovation will greatly improve Origin Ether’s efficiency, making it an extremely attractive LST for protocols. Whereas other LSTs face slippage for instant redemptions, OETH will let users and protocols swap out of OETH at a 1:1 ratio. Removing slippage opens the floodgates for protocols to put their ETH to work, knowing they can swap back to ETH when liquidity is needed.
DeFi yield opportunities for OETH are increasing – find them in one place on our new DeFi page.
Origin Ether’s utility is constantly growing with strategic integrations that unlock new yield opportunities for holders. The brand new DeFi Opportunities page is your gateway to explore leading integrations on Ethereum Mainnet and Arbitrum. The page highlights categories, TVL, and APYs for each OETH (or wOETH) integration, complete with usage guides to help you get started earning with OETH across DeFi.
The page features diverse opportunities, including the recent additions of an incentivized Dolomite wOETH pool on Arbitrum and a Morpho market on Ethereum Mainnet. Users can supply wOETH collateral in each case, borrow WETH, and repeat the process to loop their positions and maximize APYs. Check out our guide to using OETH on money markets for further details on leveraged staking strategies that currently earn up to 50% APY.
The ARM is reaching new heights as it approaches half a billion dollars in volume.
The Automated Redemption Manager saw substantial growth on its stETH/ETH pool in July. Aggregate volume on this single pool surpassed 140,000 ETH and is quickly approaching half a billion dollars, with the majority of volume being sourced from stETH whales on 1inch and CoWSwap.
In line with this success, we’ve recently announced our plans to increase asset support on the Automated Redemption Manager. By broadening the types of assets supported by the ARM, we aim to increase liquidity across the LST sector and beyond. Excitingly, the next asset to be added to the Automated Redemption Manager will be Origin Ether.
The OETH/ETH pool on the ARM will be granted special privileges to make OETH the most liquid LST available in DeFi. The spread on the OETH/ETH pool will be set to zero, offering true 1:1 swaps on Origin Ether with zero slippage. In doing so, users and protocols can easily swap into OETH to earn staking yield while having the assurance of instant redemptions with zero losses.
Join us in welcoming Clément and Ivy to Origin Protocol!
Origin expanded in July with two new hires to the team. In an effort to deliver quickly on our product roadmap, we brought on a new Solidity Engineer with deep experience in DeFi. Clément Moller joined Origin in July to help build the ARM, OETH, and expand Origin’s presence on layer 2 networks. Prior to joining Origin, Clément built critical infrastructure at Swell Network, Prisma Finance, and StakeDAO.
Additionally, Origin welcomed Ivy Lee as our new Community Manager for China. Ivy's role will be instrumental in growing and nurturing our Chinese communities through targeted initiatives and activations. This strategic hire underscores Origin's commitment to expanding our global reach, particularly in the Chinese market. Bringing extensive experience with DeFi projects and communities, Ivy is well-positioned to drive engagement and growth in this key region.
Learn how OETH and OUSD work nonstop to deliver passive yield to your wallet.
Origin Ether’s 30-day trailing APY sat above 3.1% in July, earning holders marginally more yield than Lido’s stETH or Rocket Pool’s rETH. Origin Ether’s yield was temporarily reduced due to its divestment of stETH, but now that OETH is 100% collateralized by ETH, we anticipate that yield will normalize over the coming weeks.
Origin Dollar’s 30-day trailing APY achieved 6.5% in July. Nearly half of Origin Dollar’s collateral is allocated to the Morpho Aave USDC strategy, earning lending rates and an allocation to MORPHO at TGE. 32% of OUSD collateral is used in the Morpho Aave USDT strategy, while Origin Dollar’s DAI collateral earns yield through the MakerDAO DSR.
Thank you for reading through our July Token Holder Update! We look forward to seeing you back here next month when we’ll share our progress from August. Origin is gearing up for more layer 2 expansion, new asset support on the ARM, and exciting OETH yield opportunities on top protocols. To the the first in the know, be sure to follow us on X.
Interested in learning more about Origin’s accomplishments in July? Here are some of our favorite articles to get you up to speed:
Lastly, be sure to mark your calendars for August 5th at 12 pm ET (4 pm UTC). We’ll be joining Arbitrum in Discord for our community call. Alpha will be dropped!
