According to blockchain analytics platform DefiLlama, a new yield farming app called Origin Ether has amassed a total value locked (TVL) of over $12 million just 14 days after its release. TVL is a metric that measures the dollar value of assets in an app’s smart contracts.
Origin Ether Locked in Total Value 9th-30th May. Source: Defillama
According to a representative of the events team, the app was released on May 16. DefiLlama information shows that the app already had $793,000 in its contracts prior to release, provided by employees or other early partners.
Once publicly released on May 16, Origin Ether (OETH) deposits quickly piled up, resulting in a TVL of over $13 million by May 30. That would represent an increase of around $12.6 million over 14 days.
According to the app’s official documentation, Origin Ether generates revenue from Ether (ETH) by depositing it into a range of liquid stakes and decentralized finance (DeFi) protocols. In particular, it uses an algorithmic curve and convex market operation technique to maximize returns. Before being deposited into Curve and Convex, some of the ETH is converted into liquid staking derivatives, including Lido Staked Ether (stETH), Rocket Pool Ether (rETH), and Frax Staked Ether (sfrxETH). The protocol’s documentation states that this allows customers to receive additional agricultural rewards from these suppliers.
Associated: Celsius adds over 428,000 stETH to Lido’s ever-expanding withdrawal queue
Ether liquid staking protocols allow ETH holders to pledge their funds to a community of suppliers in exchange for tokens representing those deposits. They have become more popular since Ethereum moved to proof-of-stake consensus and allowed withdrawals.
On May 1st, DefiLlama reported that liquid stake protocols had become the top DeFi category, surpassing the TVL of decentralized exchanges. On May 30th, cross-chain bridging protocol LayerZero partnered with the Tenet community to increase the use of liquid staking in the Cosmos ecosystem.
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