Origin ARM
Origin ARM allows users to deposit ETH and earn passive yield by using ETH to buy stETH from the market at a discount and redeeming it 1:1 through Lido’s stETH redemption queue.
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- Documentation
- Auditors
- Please see our FAQ on experienced auditors
- Website
- Token: OGN
- Tags: Yield
- TVL: $22.1M (Rank #152)
- TVL Ranking by Yield: #10
- Blockchain: Ethereum
- Chain TVL
- Ethereum: $22.15M
- Code reviewed by at least one experienced auditor; OpenZeppelin
- Public team promotes accountability
- No documented protocol hacks since launch
- Latest protocol version launched in 2024; maturity over nine months reduces technical risk as smart contracts are sufficiently battle-tested
- Top 20% by total value locked slightly reduces risk
- Requires members of a DAO to vote on-chain for approving contract upgrades
- Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
- Low voting power concentration reduces risk
- Robust controls to mitigate oracle price manipulation
- This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
What is Origin ARM
The Origin Automated Redemption Manager (ARM) is a smart contract system designed to provide instant, zero-slippage swaps for liquid staking tokens (LSTs) and ETH. Unlike traditional automated market makers (AMMs), which rely on liquidity pools and bonding curves, the ARM integrates features of AMMs with isolated money markets. Instead of depending on deep liquidity pools, the ARM prices assets based on market conditions, redemption queues, and arbitrage opportunities. By efficiently sourcing liquidity, the ARM ensures LST holders can swap into ETH at a stable 1:1 rate without slippage. Initially, the ARM was used exclusively by Origin as an internal liquidity provider, managing ETH in the stETH Redemption Vault to facilitate Lido stETH redemptions. With its success in maintaining tight pricing and efficiency, Origin has opened the ARM to external liquidity providers, allowing ETH holders to earn passive yield by supplying liquidity to the system. The ARM is currently integrated with 1Inch and CowSwap, enabling seamless execution for traders looking to swap LSTs for ETH.
How Origin ARM makes money
The ARM generates revenue through trading fees and yield from its redemption vaults. Each swap processed through the ARM incurs a modest fee, which is optimized for gas efficiency and competitive execution. These fees accrue to the Origin DAO, where a portion is distributed to OGN holders as protocol-owned value. The ARM also earns yield through its liquidity provision model. ETH deposited into the ARM’s stETH Redemption Vault is used to purchase stETH at a discount from secondary markets. The ARM then deposits this stETH into Lido’s redemption queue, receiving ETH in return at a 1:1 rate. This cyclical process allows the ARM to generate sustainable yield, outperforming traditional AMMs in capital efficiency.
How you make money on Origin ARM
If you are an ETH holder, you can earn passive yield by providing liquidity to the ARM’s stETH Redemption Vault. Unlike AMM liquidity provision, ARM vault deposits do not suffer from impermanent loss, making it an attractive option for those seeking stable ETH-denominated returns. Liquidity providers earn yield as the ARM acquires discounted stETH, deposits it into Lido’s redemption queue, and cycles ETH back into the vault. With an average APY above 7% since its inception, the ARM presents a compelling alternative to staking ETH directly or holding LSTs.
