Ethereum’s liquid staking sector has commanded explosive growth in 2023 as more investors look to benefit from the network’s staking rewards. Total ETH staked has risen in excess of 60% since the year’s open, meaning that more than $45 billion in ETH now helps to secure the network.
This tremendous growth is undeniably impressive. However, staking yields have compressed significantly as a result, as yield is split between an increasing pool of participants.
The novel sector of Liquid Staking Token Finance (LSTfi) has emerged in order to address this issue by delivering increased yield for users. Origin Ether (OETH) has claimed its place as the space’s largest LSTfi protocol in just two months, having generated a mammoth $82M in total value locked since launching in May.
OETH’s robust architecture is primed to serve the growing demand for secure platforms that maximize ETH staking yield for users. The protocol’s yield aggregation continues to deliver outsized yields of ~8% even in the face of rapid scaling.
Josh Frasher, Co-Founder of Origin Protocol, discusses OETH’s performance with pride.
OETH’s rampant success evidences Origin’s unique approach to Ethereum yield aggregation. The Ethereum-based protocol is fully collateralized by reserves of ETH and blue-chip liquid staking assets: Lido Staked ETH, Rocket Pool ETH, and Frax Ether.
Users can mint OETH by depositing any supported collateral. In exchange, users receive OETH, which can be traded like any other asset. Collateral deposited to the OETH treasury is deployed to premier DeFi platforms in order to generate yield for users. This multi-pronged approach is executed via Curve, Convex, and Morpho DeFi strategies to generate maximal returns.
Thanks to OETH’s mechanics, the protocol has averaged nearly 8% APY over the past 30 days. Users continue to enjoy far higher yields than those observed by LSTs, which currently offer APYs of 3 to 5%.
Origin Ether’s innovative solutions have addressed yield compression with seismic force. In doing so, the protocol has unlocked vast opportunities for liquid staking participants. The thousands of LSTs deposited to OETH over the last two months illustrate the increasing demand for highly efficient LSTfi platforms.
Origin Ether is now the 2nd largest ETH yield aggregator on Ethereum, surpassed only by yearn.finance’s CRVSTETH vault, which delivers far lower returns. Achieving these milestones in a matter of two months emphasizes the strength of OETH’s value proposition, which continues to gain momentum in tandem with liquid staking adoption.
By building at the forefront of what’s possible in DeFi, Origin Ether has cemented its standing as the market leader in LST yield aggregation. The platform’s unique ability to scale quickly without sacrificing yield further drives home OETH’s disruptive potential in the long term.
