eETH ARM
eETH ARM: Introduction
Origin’s Automated Redemption Manager (ARM) supports instant redemptions for Ether.fi’s eETH.
The eETH ARM applies the same redemption-based strategy pioneered by the stETH ARM. It arbitrages the pricing of Ether.fi’s liquid staking token, eETH, against its underlying collateral value, capturing yield from peg volatility while improving instant exit liquidity on eETH. This design gives depositors a low-risk, passive way to earn yield in ETH without needing to manually manage their position or monitor spreads.
How it Works
The eETH ARM earns yield by buying discounted eETH on AMMs and redeeming it 1:1 for ETH through Ether.fi’s withdrawal process. The spread between the market price and the redemption value becomes yield for eETH ARM depositors. This approach consistently monetizes short-term peg deviations while helping stabilize eETH’s onchain market pricing.
Lending Market Integrations
To increase capital efficiency, the eETH ARM routes unused ETH to the wETH/WETH market on Morpho via the Gauntlet WETH Core Vault. When peg volatility is low and fewer arbitrage opportunities are available, idle ETH is deposited to this market to earn additional yield. This keeps the vault productive across varying market conditions and reduces idle capital drag.
Flow of Funds
LP deposits ETH into the eETH ARM vault using the Origin dapp
ETH deposited in the vault is split between:
Vault buffer (used to arbitrage eETH market pricing)
Morpho (anything beyond the required vault liquidity goes here to earn lending market yield)
ETH in the vault buffer is used by the ARM to acquire eETH at a discount
eETH is redeemed 1:1 for ETH via Ether.fi’s withdrawal queue (the delta between the discounted price and the 1:1 price accrues as yield to the eETH ARM)
[Back to Step 2] Resulting ETH is split between the vault buffer and Morpho
Redemptions
Withdrawals from the ARM are processed on-demand when liquidity is available. However, because eETH must be redeemed through Ether.fi’s unstaking process which is is asynchronous, redemptions for large withdrawals can take 7-15 days. In the case that the ARM receives additional user deposits, withdrawal liquidity may be available sooner.
DEX Aggregator Integrations
By offering the best rates for eETH swaps, the eETH ARM captures volume from DEX aggregators. The ARM S Vault is integrated with KyberSwap and OpenOcean at launch, two of the leading DEX aggregators on Sonic.
LP Token
The eETH ARM vault LP token is: ARM-WETH-eETH. Users who deposit into the eETH ARM's ETH Vault receive ARM-WETH-eETH, representing their share of the vault. These tokens will soon expand throughout DeFi for lending, borrowing, and trading.
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