ARM Vault Delivers 50% Higher ETH Yields Through LST Arbitrage
ARM Vault Delivers 50% Higher ETH Yields Through LST Arbitrage
🔄 ARM Vault's 50% Edge
Performance Data
A 100 ETH deposit in the stETH ARM Vault earned 4.06 ETH over one year, compared to 2.67 ETH in a standard LST - representing 50% additional yield.
How It Works
- ARM Vaults arbitrage liquid staking tokens when they trade below peg
- Tokens are redeemed 1:1 for ETH through LST withdrawal queues
- During high volatility, the stETH ARM has generated daily APYs exceeding 30%
Yield Optimization
When arbitrage opportunities are limited, ARM Vaults route ETH to Morpho for lending yields through the WETH ARM Vault, curated by Yearn Finance. The vault lends to stETH, eETH, and ETH+ markets while maintaining ETH-correlated collateral exposure.
Additional Benefits
Withdrawal times are notably shorter than direct LST redemptions due to continuous cycling through LST redemption queues.
Users can now leverage loop ARM yields on Morpho by borrowing WETH against their positions.
Over the past year, a 100 ETH deposit in the stETH ARM Vault earned 4.06 ETH — versus 2.67 ETH in a standard LST. That's 50% more yield on the same asset. ARM Vaults generate yield by arbitraging LSTs when they fall off peg and redeeming them 1:1 for ETH through LST withdrawal
ARM depositors can now leverage loop ARM yields on @Morpho 🦋 Borrow WETH against your position to loop — the ARM captures LST price-to-collateral spreads, performing best during volatility. Market setup curated by @kpk_io: 🔗app.morpho.org/ethereum/marke…
🛡️ OpenCover Launches Covered Vaults for stETH ARM
OpenCover has introduced **Covered Vaults**, starting with coverage for the stETH ARM (Automated Risk Management) vault. Users can now insure their deposits against potential exploits and risks. **Key Details:** - First covered vault available: stETH ARM - Insurance available at [opencover.com/vaults](http://opencover.com/vaults) - Follows OpenCover's track record of paying out over $200,000 in claims from previous exploits **How It Works:** Covered Vaults allow DeFi users to protect their assets for a monthly premium against exploits, depegs, and governance attacks. Users receive a proof of cover NFT upon purchase. This launch expands OpenCover's protection services beyond individual protocol coverage to vault-specific insurance solutions.
OETH Eliminates Oracle Dependency with EIP-4788 Cryptographic Validator Balance Verification
**OETH has implemented a new system to verify validator balances without relying on trusted third-party oracles.** Using **EIP-4788**, OETH now verifies validator data directly onchain through merkle proofs. This approach provides cryptographic proof of balances, eliminating intermediaries and oracle dependencies that most liquid staking tokens rely on. The technical breakdown by @naddison explains how this verification works: - Traditional LSTs depend on oracle reporters to submit validator balance data - OETH's new method uses cryptographic proofs to verify balances directly onchain - No trusted reporters or intermediaries are needed in the process This represents a significant security improvement, as oracle-reported balances remain accurate only until they fail. By removing this dependency, OETH reduces systemic risk while maintaining its LST aggregator functionality. [Learn more about the technical implementation](https://oeth.com)
Origin Protocol's ARM Launches New Morpho Markets Integration
Origin Protocol has announced new Morpho Markets integration for its Automated Rebalancing Manager (ARM). The development expands OETH's yield-generating capabilities beyond its current deployment across Curve, Convex, Balancer, and Aura. **Key Points:** - ARM now integrates with Morpho Markets for enhanced yield optimization - OETH continues to aggregate yields from multiple blue-chip DeFi protocols - The LST aggregator maintains 1:1 backing with ETH, WETH, stETH, rETH, and frxETH Full details available on [Origin Protocol's blog](https://www.originprotocol.com/blog/arm-morpho-markets?lang=en&category=all&page=1).
🔄 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)