The Ethereum liquid staking sector has been in its own bull market since the beginning of this year, regardless of broader market conditions. The amount of staked ETH has increased over 50% since January, with an aggregate of over $45 billion in ether now staked. However, as more stakers join the network, yield on staked ETH has compressed significantly.
New protocols have emerged to address this, creating a new sector within crypto dubbed Liquid Staking Token Finance (LSTfi). Among these protocols is Origin Ether (OETH), a liquid staking yield aggregator that quickly became the top yield aggregator for ETH liquid staking.
Origin Ether has accrued an aggregate of over $80 million in total value locked less than two months since its public launch. This milestone solidifies OETH’s position as the dominant player in the rapidly evolving LSTfi space and highlights the growing demand for innovative solutions that offer elevated yield on liquid staking products.
Josh Fraser, co-founder of Origin Protocol, gave us his reaction to Origin Ether’s growth: “Crossing the $75 million threshold in TVL is an exciting milestone for Origin Ether,” said Josh Fraser, Co-Founder of Origin Protocol. “It underscores the need for our innovative approach to staking, offering users the ability to earn Ethereum staking rewards while also earning through DeFi. We’re thrilled to witness the growing support for OETH and remain committed to furthering the advancement of the yield aggregation in the liquid staking space.”
OETH, an ERC20 token on the Ethereum network, represents a novel approach to liquid staking. Through its unique architecture, token holders receive exposure to blue-chip liquid staking assets Lido Staked ETH, Rocket Pool ETH, and Frax Ether. Holders also gain exposure to wrapped ETH, which is used to earn yield via Curve, Convex, and Morpho DeFi strategies. While LSTs currently yield 3 – 5% APY, Origin Ether has averaged 8% APY over the past 30 days.
This approach has addressed the challenge of yield compression head-on, allowing stakers to simultaneously earn staking rewards and attractive DeFi APYs. Thousands of stETH, rETH, and frxETH have been swapped for OETH, signaling demand from liquid staking token holders.
The Origin Ether protocol already ranks as the 2nd largest Ethereum yield aggregator, and it offers substantially higher yield than the yearn.finance’s CRVSTETH vault, which overtakes OETH in total value locked. The rapid growth of OETH’s TVL serves as a testament to the increasing recognition of the value proposition offered by liquid staking finance.
The current state of the liquid staking space showcases the growing demand for products like OETH. As a leading asset in this market segment, OETH has demonstrated its ability to meet this demand and scale efficiently. With its achievement of surpassing $80 million in total value locked, OETH has firmly established itself as the go-to choice for users seeking higher yields on their liquid staking assets.
