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Getting Started With OETH: Yield Farms

August 22, 2023
OETH yield farms

Yield Farms for Origin Ether

The success of Ethereum’s Shanghai upgrade was a landmark occasion for the network, successfully enabling withdrawals of staked ETH. After the perceived risk of disabled withdrawals was resolved, demand from holders to stake and earn yield on their ETH began to flow rapidly, with an increase of 57% in staked ETH since the upgrade took place. 

Due to the minimum deposit requirement of 32 ETH and lack of liquidity for solo stakers, many holders opt to stake with liquid staking solutions such as Lido, Rocket Pool, and Coinbase instead. These providers’ liquid staking tokens essentially act as an IOU for the depositors’ staked ETH balance, and can be used across DeFi.

With the variety of options to earn yield on ETH via staking, liquid staking, and DeFi strategies, retail users started to get plagued with choice overload. Strategies differ in rewards and risks, alongside non-fixed yields, requiring users to perform due diligence and constant rebalancing if they would like the best risk-adjusted yields. As a solution, Origin created Origin Ether (OETH), a yield aggregator that automatically optimizes between battle-tested yield strategies for holders.  

Brief History of Origin DeFi and OTokens

Two of the earliest DeFi use cases were stablecoin remittances and the ability to earn yield on stablecoins. With the creation of lending and decentralized exchange applications, users could put their stablecoins to work and earn yield. 

That said, many retail users are priced out of earning yield efficiently, due to expensive Ethereum transaction fees and dynamic market conditions that cause highly variable yields; only whales with millions of dollars can constantly rebalance their assets between strategies to optimize for yields.

To equalize the playing field, Origin developed Origin Dollar (OUSD), a transferable yield-bearing stablecoin. Users may deposit their stablecoins such as USDT, USDC, or DAI into the OUSD smart contract, which then redeploys these stablecoins into battle-tested yield-earning strategies. By aggregating deposits, OUSD achieves the economies of scale to consistently rebalance between strategies for the best risk-adjusted yields. 

Origin Ether (OETH)

When trying to earn yield on their ETH, we have found that users expressed the same issues - high Ethereum fees, varying yields, and choice overload. On top of ETH DeFi strategies, users have the added choice of which liquid staking solutions to use. 

Using the same principles as OUSD, Origin developed OETH. Compared to traditional liquid staking, OETH offers elevated yields through the use of proprietary strategies, while incorporating multiple liquid staking strategies to rebalance between the highest yields. Users simply have to hold OETH in their wallets, and they can redeem it for ETH at any time.

Yield Farms That Support Origin Ether

Though OETH was mainly designed for holders to efficiently stack ETH to enjoy passive income, yield farmers may opt to utilize their OETH in DeFi applications to earn yield. Note that these strategies may not bear higher yields than passively holding OETH, and users do not receive the base OETH yields in these strategies.

yearn.finance

Yearn Finance was one of the original DeFi primitives built back in 2020. As a yield aggregator built on top of other DeFi applications, Yearn would help users optimize yields via constant rebalancing and auto compounding. 

In its current iteration, Yearn offers the same optimizations, while helping depositors earn extra CRV rewards on Curve strategies, due to their locked CRV boost. OETH holders may choose to deposit in the OETH/ETH Yearn Vault to benefit from the extra boost. 

Beefy Finance

Beefy Finance is a yield aggregator supporting a total of 17 chains, such as BSC, Polygon, Arbitrum, Optimism, and Avalanche. Beefy offers auto compounding for the OETH/ETH vault built on top of Convex, but has no native locked CRV boost like Yearn.  

Harvest Finance

Lastly, Harvest Finance is a yield aggregator that allows depositors to earn their native token, FARM, as rewards. Harvest offers the same auto compounding for its OETH/ETH vault build on top of Convex.

Swap to OETH: Start Stacking ETH Faster

Liquid staking strategies by Lido, Rocket Pool, Coinbase, etc, offer a convenient way for users to earn yield on their ETH, but these solutions may not always offer the best yields. By helping users automatically rebalance between battle-tested strategies, OETH ensures holders’ get the best risk-adjusted yields. In addition to passively holding OETH, yield farmers may choose to manually optimize their OETH strategy. 

Overall, OETH is the preferred choice for holders who want to earn yield on their ETH in a simple and efficient way. If you are interested in learning more about OETH, you can visit OETH.com or join the Origin Discord community.

Joshua Teo
Joshua Teo
Origin
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