Decentralized finance (DeFi) project Origin Protocol announced that it will issue Origin Ether (OETH), an Ether derivative that allows holders to earn returns from staking Ether on other protocols.
Origin said its OETH can be stacked on top of native staking rewards to increase rewards for holders. The token is the latest in a long list of staked Ether derivative tokens in a quickly crowded and competitive market.
OETH holders can earn trading fees and token rewards through DeFi protocols Curve and Convex. Origin has a significant amount of Curve (CRV) and Convex (CVX) tokens, allowing the protocol to increase yields through reward tokens issued to liquidity providers.
Users can mint OETH by depositing Ether (ETH) or Liquid Staking Derivative (LSD) collateral, including Staked Ether (stETH) and Frax Ether (rxETH) – tokens issued by Lido and Frax Finance that provide returns to their holders, when they stake their Ether tokens. OETH receives instant rewards directly in the user’s wallet.
Through OETH’s positive rebasing mechanism, yield is generated directly into holders’ wallets in the form of additional OETH units at least once a day, without incurring gas fees.
“OETH is designed for people who want access to the highest yields available in DeFi, without the hassles typically associated with yield farming,” explained Josh Fraser, co-founder of Origin Protocol, in an emailed statement.
“With OETH, you can earn additional returns on top of the native staking returns available with trusted liquid staking derivatives without wasting hundreds of dollars maintaining your position,” added Fraser.
Beyond traditional DeFi lending strategies, a core strategy of OETH is to gain access to a diversified set of stake derivatives used to earn Ether validator rewards. The underlying collateral is paired with Ether and provided as liquidity to various Curve pools to further increase returns for users.
Origin’s Native Origin (OGN) tokens are trading at 9 cents on Tuesday afternoon and have changed nominally over the last 24 hours.
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