Redemption

As a permissionless protocol with no gatekeepers, OETH supports redemption by anyone at any time. While there are four different ways to exit OETH, users can go through the Origin dapp to get the best outcome without needing to consider every option.

1. Instant 1:1 ARM swap - OETH is the first LST to offer lossless 1:1 WETH exchange through Origin's Automated Redemption Manager (ARM). This mechanism allows anyone to enter and exit OETH instantly with no slippage or price impact. The OETH ARM has recently been deployed to support OETH redemptions at a small scale and will be scaled up with additional liquidity in the coming weeks.

2. Async withdrawal - As with most other top tier LSTs, OETH offers the ability to request and claim the underlying ETH from the Beacon Chain at any time through a withdrawal queue. This feature provides a fallback in the event that the OETH ARM has insufficient liquidity to support a large scale instant 1:1 swap. Holders of OETH can be assured that 100% of the protocol's staked ETH can be accessed within a matter of hours or days in any market conditions.

3. DEX swap - The OETH/ETH Curve pool features deep exit liquidity allowing anyone to swap OETH for ETH at the current spot price. This rate fluctuates based on market demand but is often arbitraged back to near 1:1 anytime it falls due to a large sale.

4. Instant vault redemption - The OETH vault's legacy redeem function takes any amount of OETH and burns it in exchange for WETH at a rate of 1:0.999. This fee of 0.1% protects the protocol from any malicious attacks that could theoretically result from rounding errors. While this redemption feature limits the downside for anyone holding OETH, it is expected to be deprecated as the OETH ARM scales up. With the advent of 1:1 redemptions - both instant and async - vault redemptions are no longer beneficial for users.

Redemption is a critical feature for any LST and is paramount for OETH to remain the optimal building block for DeFi protocols. Allowing users to confidently hold OETH knowing they can exit at virtually 1:1 for ETH anytime will always be OETH's top priority.