A new yield farming app called Origin Ether has accumulated over $12 million in total value locked (TVL) just 14 days after launch, according to data from the DefiLlama blockchain analysis platform. TVL is a metric that measures the dollar value of assets within an application’s smart contracts.
The app launched on May 16, according to a representative of the development team. DefiLlama data shows that the app already had $793,000 locked in its contracts prior to launch, which team members or other early partners may have supplied.
Once the public launch occurred on May 16, deposits into Origin Ether (OETH) quickly accumulated, leading to a TVL of over $13 million on May 30. This represents a profit of approximately 12.6 million dollars in 14 days.
According to the official documentation of the application, Origin Ether generates performance from Ether (ETH) by depositing it into multiple liquid staking and decentralized finance (DeFi) protocols. Specifically, it uses an algorithmic strategy of trading the market on Curve and Convex to maximize returns. Before being deposited with Curve and Convex, some of the ETH is converted into liquid staking derivatives, including Lido Staked Ether (stETH), Rocket Pool Ether (rETH), and Frax Staked Ether (sfrxETH). The protocol documentation states that this allows users to earn additional farming rewards from these vendors.
Ether liquid staking protocols allow ETH holders to lock up their coins in a network of providers in exchange for tokens representing those deposits. They have become more popular as Ethereum moved to proof-of-stake consensus and allowed withdrawals.
May 1st, DefiLlama reported that liquid staking protocols had become the top DeFi category, surpassing the TVL of decentralized exchanges. On May 30, the LayerZero cross-chain bridging protocol partnered with the Tenet network to increase the use of liquid staking in the Cosmos ecosystem.
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