ARM Launches New Morpho Markets for Enhanced Yield Strategies
ARM Launches New Morpho Markets for Enhanced Yield Strategies
🔄 ARM expands to Morpho
Origin Protocol has expanded its Automated Rebalancing Manager (ARM) with new markets on Morpho, a DeFi lending protocol.
Key Points:
- ARM now deploys OETH collateral across additional Morpho markets
- This expansion complements existing strategies on Curve, Convex, Balancer, and Aura
- The move aims to optimize yield generation for OETH holders through diversified deployment
Background: OETH generates yield through multiple sources including LST validator rewards, protocol deployment, and a 50 basis point exit fee. The addition of Morpho markets provides another avenue for capital efficiency.
Arrakis Finance previously published a case study on Morpho highlighting the protocol's effectiveness.
Read more on the ARM’s new Morpho Markets on our blog: 🔗 originprotocol.com/blog/arm-morph…
🔄 ARM Depositors Can Now Leverage Loop Yields on Morpho
ARM depositors can now leverage loop their yields through Morpho by borrowing WETH against their positions. **Key Details:** - Users can borrow WETH against ARM positions to create leveraged loops - ARM captures LST price-to-collateral spreads - Strategy performs optimally during periods of market volatility - Market setup curated by @kpk_io [Access the market](https://app.morpho.org/ethereum/market/0x2049bea9dfae8189895616ff4bf229c9c664e266b29c9ffe692b100be4879714/arm-weth-steth-weth#overview)
🔄 Origin's eETH ARM Routes Idle Capital to Morpho for 5.7% APY
Origin Protocol's eETH Automated Redemption Manager (ARM) integrates Morpho lending to maintain consistent yields when arbitrage opportunities are scarce. **How it works:** - Primary strategy: arbitrages eETH price differences across AMMs and Ether.fi withdrawal queue - When eETH trades below peg, ARM buys discounted eETH and redeems 1:1 to capture spread - During idle periods, capital automatically routes to Morpho for lending yields **Performance:** - 5.7% APY over past 30 days - Outperforms base eETH staking (~3% APY) - Peak volatility periods have generated 30%+ daily APYs The strategy builds on Origin's proven stETH ARM, which has processed $2B+ volume over 2 years with 5.6% recent APY. Audited by OpenZeppelin and yAudit. [Explore eETH ARM](http://app.originprotocol.com/#/arm/1:ARM-WETH-eETH)
🔥 stETH Volatility Trading
**Pendle Finance** now offers the first-ever **stETH volatility trading** market. - ARM protocol captures the spread between different stETH positions - Pendle transforms this into a tradeable market for users - Traders can now directly trade volatility exposure on staked Ethereum This creates a new DeFi primitive allowing users to speculate on or hedge against stETH price movements without holding the underlying asset. [Trade stETH volatility on Pendle](https://app.pendle.finance/trade/markets/0x53f940db819400f226466f5ad330c177a4be6b3c/swap?view=pt&chain=ethereum)
💰 Negative Rates Alert
**Morpho's Borrow Booster markets** are offering negative interest rates on USDC loans, meaning borrowers get paid to borrow. **Key Details:** - Available on Base and Ethereum Mainnet - Base Super OETH market offering ~9.7% APY to borrowers - Higher LTV loops earn more rewards - Auto-deleverage feature reduces liquidation risk **How it works:** - OETH and Super OETH yield subsidizes borrow costs - Borrowers effectively earn money on USDC loans - Risk management through automatic deleveraging **Available Markets:** - [Base Super OETH](https://app.morpho.org/base/market/0x67a66cbacb2fe48ec4326932d4528215ad11656a86135f2795f5b90e501eb538/superoethb-usdc) - [Ethereum OETH](https://app.morpho.org/ethereum/market/0xb8fef900b383db2dbbf4458c7f46acf5b140f26d603a6d1829963f241b82510e/oeth-usdc) Check out these markets to explore earning while borrowing.