Decentralized finance (DeFi) project Origin Protocol said it would issue Origin Ether (OETH), an ether derivative that allows holders to earn yields generated from staking ether on other protocols.

Origin said that its OETH can be stacked on top of native staking rewards to boost rewards for holders. The token is the latest in a long list of staked ether derivative tokens in what is quickly becoming a crowded and competitive market.

OETH holders can earn trading fees and token rewards through DeFi protocols Curve and Convex. Origin holds a significant amount of curve (CRV) and convex (CVX) tokens, allowing the protocol to boost yields through rewards tokens that are emitted to liquidity providers.

Users can mint OETH by depositing ether (ETH) or liquid staking derivative (LSD) collaterals including staked ether (stETH) and frax ether (rxETH) – tokens issued by Lido and Frax Finance which offer yields to their holders if they stake their ether tokens. OETH will earn rewards immediately directly in the user’s wallet.

Through OETH’s positive rebasing mechanism, yield is generated at least once per day directly in holders’ wallets in the form of additional units of OETH with no gas fees required.

“OETH is designed for people who want access to the highest yields available in DeFi without any of the hassles typically associated with yield-farming,” explained Josh Fraser, co-founder of Origin Protocol, in an emailed statement.

“With OETH, you can earn an additional yield on top of the native staking yield that is available from trusted liquid staking derivatives without wasting hundreds of dollars maintaining your position,” Fraser added.

Beyond traditional DeFi lending strategies, a core strategy of OETH is to gain exposure to a diversified set of staking derivatives, which are used to earn ether validator rewards. The underlying collateral will be paired with ether and provided as liquidity to various Curve pools to further boost yields for users.

Origin's native origin (OGN) tokens trade at 9 cents as of Tuesday afternoon and are nominally changed over the past 24 hours.

Edited by Parikshit Mishra.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.The leader in news and information on cryptocurrency, digital assets and the future of money, WJB is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. WJB is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain WJB employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. WJB journalists are not allowed to purchase stock outright in DCG.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.

Follow @shauryamalwa on Twitter

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.

Follow @shauryamalwa on Twitter

source:coindesk