Convex Finance: How to Earn Up to 12.75% vAPR with OETH

Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned including OGV.

As we’ve covered the rise of LSTfi, the surge of new products sometimes brings unwanted confusion for DeFi newbies seeking the best liquid staking yield for their ETH. Since 2017, the DeFi product team at Origin Protocol have been building their flagship OTokens, specifically OUSD, which provides holders with exposure to the “best yields available on USD with none of the hassles typically associated with yield-farming.” OUSD is a self-custodial, yield-generating stablecoin that is 100% redeemable for DAI, USDC, and USDT. OUSD is currently earning its holders 4.82% APY, as of this writing.

Recently launched in May 2023, Origin’s newest OToken is called OETH, which uses the same codebase but accepts ETH collateral and utilizes different combinations of strategies for liquid staked ETH. OETH helps you accumulate more ETH. OETH tracks the price of ETH instead of the US dollar. OETH is 100% permissionless and always redeemable 1:1 for the ETH collateral backing it.

OETH leverages the best staking pools by using leading LSTs as collateral. OETH users deposit stETH, rETH, sfrxETH, or frxETH to mint OETH, as well as ETH or WETH. By simply holding OETH, holders passively earn a superior ETH yield because the underlying staked ETH liquidity earns rewards (see the breakdown above). As a result, OETH’s yield is always at least as high as the LSTs it utilizes. However, OETH employs additional strategies to ensure that yield remains consistently higher than pure liquid staking. This is achieved thanks to