May 2026 Token Holder Update

Summary

May was a strong month across Origin's products. Yields stayed elevated, new OUSD integrations went live, and the eETH ARM crossed $100 million in cumulative trading volume. OUSD averaged over 6.1% APY, driven by sustained borrowing demand across Morpho markets, and 5.9 million OGN was bought back during the month.

Our May update covers ARM performance, OUSD integrations, OETH development, and the full OGN buyback figures for May.

Origin Dollar (OUSD) Integrations

Origin Dollar averaged over 6.1% APY through May. The yield reflects sustained borrowing demand across Morpho markets on Ethereum, Base, and HyperLiquid.

Two integrations launched in May that extend how users can earn with OUSD:

The wOUSD Pendle market launched in May, with LP incentives bringing yields up to 42% APY. The market splits wOUSD into PT-wOUSD and YT-OUSD, giving users optionality with how they earn yield. PT-wOUSD offers fixed rate exposure to OUSD at a current 3.4% APY until December 16th, 2026. YT-wOUSD enables access to leveraged yield exposure, where users can earn variable rates based on underlying yield earned by OUSD. LPs providing liquidity earn trading fees from both PT and YT activity, plus additional incentives for a limited time.

The wOUSD Fusion Vault on IPOR was built in May, and will open to the public in the coming days. The Fusion Vault deposits wOUSD as collateral on Morpho's wOUSD/USDC market, borrows USDC, converts to more wOUSD, and loops automatically based on borrow rates relative to underlying APY. The result is amplified exposure to OUSD yield without manual leverage management.

Explore Origin Dollar on the Origin Dapp.

ARM Vaults

The stETH and eETH ARM vaults generated trailing 30-day APYs of 2.3% and 4.9% respectively in May. Both vaults continued finding profitable arbitrage opportunities through the month, routing idle WETH to Morpho when spreads compressed.

The eETH ARM surpassed $100 million in cumulative trading volume in May. Since its February 2026 launch, the vault has run the same passive arbitrage framework as the stETH ARM: buying eETH at a discount on DEXs and redeeming at 1:1 through the Ether.fi withdrawal queue when the yield on the spread exceeds Morpho lending rates. The milestone reflects consistent arbitrage activity across a range of market conditions, including the April volatility period when the eETH ARM hit a daily APY above 40%.

The ARM vault model also points toward a larger structural opportunity. Tokenized real-world assets introduce the same dynamic that drives ARM yield in LST markets: assets that trade at a discount to a redeemable underlying value, with a defined path back to par through issuer redemption mechanisms. Where redemption queues exist and secondary market pricing diverges from redemption value, the ARM framework applies directly.

Origin Ether (OETH) Updates

Origin Ether generated a trailing 30-day APY of 2.4% at $54M in TVL.

The OETH/USDC Morpho Market continues to offer some of the lowest USDC borrow rates in DeFi. The market has grown to $9.8M in size, with a current utilization rate of 86%. The current net borrow rate is 0.3%, offering users near-zero interest rates for borrowing USDC. Borrow Booster routes OETH staking yield directly to borrowers in the market via Merkl, reducing net borrow costs and creating a structural incentive for USDC borrowing against OETH collateral.

In the infrastructure side, OETH is making progress towards compounding validators with over 57% of staked ETH collateral now migrated. With compounding validators, staking rewards accumulate directly inside the validator rather than being swept and redeployed externally, removing the 32 ETH top-up constraint and eliminating the external oracle dependency on consensus-layer balances through EIP-4788-based onchain verification.

Origin Token (OGN) Buybacks

4.8M OGN was bought back in May. Cumulative buybacks now stand above 94M tokens, representing 14.2% of circulating supply. 100% of net protocol fees are routed to OGN buybacks. As protocol revenue grows across OETH, Super OETH, OUSD, and the ARM vaults, buyback volume grows with it.

Here are some metrics as of June 2026:

49% of OGN supply is currently staked as xOGN
Max locked xOGN stakers are earning 14.7% APY
Daily protocol fees peaked at ~$13,600 on May 19th

Product Metrics

Here's how Origin's products performed in May:

Origin Ether (OETH): achieved a trailing 30-day APY of 2.4% at $54.4M in TVL.
Super OETH (superOETHb): achieved a trailing 30-day APY of 2.4% at $23.6M in TVL.
Origin Dollar (OUSD): achieved a trailing 30-day APY of 6.2% at $5.4M in TVL.
stETH ARM: achieved a trailing 30-day APY of 2.3% at $8.6M in TVL.
eETH ARM: achieved a trailing 30-day APY of 4.9% at $5.2M in TVL.

In Case You Missed It

May's headlines were focused on integration and distribution: wOUSD on Pendle and Fusion, the eETH ARM's $100M volume milestone, and steady yields through a quieter macro environment.

In case you missed it, here's some of our highlights from May:

As always, we invite you to join our community on Discord and follow Origin Protocol on X for ongoing updates.