OpenZeppelin Completes 11th Audit of Origin Protocol's Codebase

**OETH becomes one of the first liquid staking tokens to implement Merkle proof verification for staked ETH balances.** The upgrade brings three key improvements: - **Compounding validators** with new architecture for improved efficiency - **Front-run protection** for enhanced security - **Partial withdrawals** enabling faster beacon chain exits **Security audit completed** Sigma Prime's audit of the compounding validator contracts found no critical or high severity issues. All other findings have been resolved or closed. **Migration timeline** The transition to compounding validators begins soon, with full validator migration expected to complete in Q2 2026. The new architecture enables onchain verification using Merkle proofs for balance reporting, marking a technical advancement in LST infrastructure. [View audit report](https://github.com/sigp/public-audits/blob/master/reports/origin/Sigma_Prime_Origin_Protocol_Validator_Consolidations_Security_Assessment_Report_v2_0.pdf)

**Tangent's $USG stablecoin will integrate OUSD Curve pools as a yield source at launch**, marking another protocol building on OUSD infrastructure. **Key implications:** - Deeper onchain liquidity for OUSD ecosystem - Strengthened Pool Booster yields for existing OUSD liquidity providers - Expanded utility for OUSD Curve pools beyond simple trading pairs **Context:** OUSD has been rapidly expanding its Curve presence with multiple stablecoin pairs including USDe (Ethena), pmUSD (Raac), eUSD (Reserve), AVUSD (Avant), crvUSD, msUSD, and USDnr. These pools combine Pool Booster incentives with co-incentives to deliver competitive APYs for LPs. The integration demonstrates OUSD's growing role as DeFi infrastructure, with protocols choosing to build on top of its yield-generating capabilities rather than just pairing with it.

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)

**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)

**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.