Decentralized finance (DeFi) project Origin Protocol has recently announced plans to issue Origin Ether (OETH), an ether derivative allowing holders to earn yields generated by staking ether on other protocols. Online interest in OETH has surged, as the token promises to stack on top of native staking rewards to boost rewards for holders. However, the growing number of staked ether derivative tokens has made the market even more competitive.
OETH holders can potentially earn trading fees and token rewards through DeFi protocols Curve and Convex. As Origin holds a significant amount of Curve (CRV) and Convex (CVX) tokens, the protocol can potentially enhance yields through reward tokens given to liquidity providers.
Origin Ether is minted by depositing ether (ETH) or liquid staking derivatives such as staked ether (stETH) and frax ether (rxETH), tokens issued by Lido and Frax Finance that offer yields to their holders when staking ether tokens. Users can start earning rewards immediately, with yields generated directly in their wallets.
OETH’s positive rebasing mechanism allows yield generation at least once per day, directly in holders’ wallets, without the need for gas fees. According to Josh Fraser, co-founder of Origin Protocol, OETH is designed for those who want access to DeFi’s highest yields without the typical hassles associated with yield-farming. This additional yield, Fraser explains, can be earned “on top of the native staking yield that is available from trusted liquid staking derivatives without wasting hundreds of dollars maintaining your position.”
Expanding beyond traditional DeFi lending strategies, OETH aims to provide exposure to a diverse range of staking derivatives used for earning ether validator rewards. To further optimize yields for users, the underlying collateral will be paired with ether and offered as liquidity to several Curve pools.
As of Tuesday afternoon, Origin’s native origin (OGN) tokens traded at 9 cents with negligible changes within the past 24 hours. While the introduction of OETH presents promising opportunities for crypto enthusiasts, some degree of skepticism remains due to the crowded and competitive staking derivatives market. Despite this concern, Origin Protocol continues to push forward, showcasing the prominent role that DeFi projects play in the evolving blockchain ecosystem.
Source: Coindesk
