Origin ARM Vaults Offer Above-Market Yields Through USDe Arbitrage

Origin Sonic (OS) and OS ARM are shutting down after a governance vote passed. The vault has sufficient funds for all withdrawals. **Key Details:** - Users can claim their funds after a 10-minute protocol delay - Withdrawal window: Now through September 26th, 2026 - Access withdrawals at [app.originprotocol.com](http://app.originprotocol.com) - **OS and OS ARM have stopped earning yield** **Action Required:** Users should withdraw their assets before the September deadline to avoid complications.

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.