OS ARM

Intro to OS ARM

Origin’s Automated Redemption Manager (ARM) is now live on Sonic.

Built to capture yield from LST peg volatility, Origin’s ARM offers depositors a low-risk, passive yield strategy. This is Origin’s next ARM deployment, following the successful launch of the ARM ETH Vault on Ethereum, which supports the stETH peg. The ARM S Vault applies the same redemption-based strategy on Sonic, supporting the OS peg while leveraging new efficiencies unique to Sonic’s architecture.

How it works

Origin’s ARM earns yield by arbitraging LST prices during times of volatility. When OS trades at a discount, the ARM S Vault purchases OS on AMMs and deposits it to the Sonic staking withdrawal queue. Once the tokens are redeemed 1:1 for S, the process repeats—generating low-risk yield in the process.

Lending Market Integrations

Unlike the ARM ETH Vault on Ethereum, the ARM S Vault increases its capital efficiency with lending market integrations. In stable market conditions, the ARM routes idle S liquidity to Silo’s lending markets to earn additional yield. This makes the Sonic ARM more capital efficient than its Ethereum counterpart, unlocking additional upside for depositors even during low-volatility periods.

Withdrawals from the ARM are processed on demand when liquidity is available. However, because LSTs must be redeemed through Sonic’s withdrawal queue, redemptions may take up to 14 days during times of high activity.

DEX Aggregator Integrations

By offering the best rates for OS swaps, the ARM S Vault 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.