Decentralized finance (DeFi) project Origin Protocol announced it would issue Origin Ether (OETH), an Ether derivative that allows holders to earn income from using Ether on other protocols.
Origin said its OETH can be stacked in addition to native staking rewards to increase rewards for holders. The token is the latest in a long list of ether derivative tokens staked in a rapidly crowded and competitive market.
OETH holders can earn trading fees and token rewards via the Curve and Convex DeFi protocols. Origin has a significant amount of Curve (CRV) and Convex (CVX) tokens, allowing the protocol to increase returns 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 offer returns to their holders, when they stake their ether tokens. OETH instantly receives rewards directly in the user’s wallet.
OETH’s positive rebasing mechanism generates revenue 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 Origin Protocol co-founder Josh Fraser in an emailed statement.
“With OETH, you can earn additional returns on top of the native stake returns available with trusted liquid stake 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 yields for users.
Origin’s Native Origin (OGN) tokens are trading at 9 cents Tuesday afternoon and have changed nominally over the past 24 hours.
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