Origin Ether, a new yield farming app, has achieved remarkable success within just 14 days of its launch. According to DefiLlama, the app has accumulated over $12 million in total value locked (TVL), indicating the dollar value of assets within its smart contracts. Before its public launch on May 16, the app already had $793,000 locked in its contracts. However, after the launch, deposits flooded in, resulting in a TVL of over $13 million by May 30, marking an impressive gain of approximately $12.6 million.
Origin Ether operates by generating yield from Ether (ETH) through various liquid staking and decentralized finance (DeFi) protocols. To maximize returns, the app uses an algorithmic market operations strategy on Curve and Convex. Before depositing the Ether into Curve and Convex, a portion of it is converted into liquid staking derivatives, including stETH, rETH, and sfrxETH. This approach enables users to earn additional farming rewards from these providers.
Liquid staking protocols have gained popularity as Ethereum transitioned to proof-of-stake consensus and introduced withdrawal capabilities. These protocols allow ETH holders to stake their coins with a network of providers and receive tokens representing their deposits. The significance of liquid staking has been evident as it became the top DeFi category, surpassing decentralized exchanges in terms of TVL. Furthermore, the adoption of liquid staking in the Cosmos ecosystem has been bolstered by a partnership between LayerZero and the Tenet network on May 30.
