LogoLaunch App

Incentives Live on Morpho: How and Why to Borrow ETH Using OETH

June 18, 2024

Make the Most of Incentives on Morpho's wOETH Pool

A new wOETH/WETH market recently launched on Morpho, allowing users to borrow WETH against wOETH on the leading DeFi money market.

The Re7 Capital Metamorpho vault is supplying WETH liquidity to the pool, which could grow to $10M as utilization rates increase. Currently, the pool boasts ~$2.4m in available WETH liquidity. To celebrate the launch, Origin plans to distribute up to $45k in OGN rewards to WETH lenders over the next three months, starting 6 June 2024, at midnight UTC.

Thanks to a complementary proposal, Morpho is also distributing 6667 MORPHO to the pool over the next 30 days, further boosting incentives.

Users can take advantage of the lucrative yields on offer by looping wOETH: depositing wOETH to the pool, borrowing WETH, and using this WETH to purchase additional wOETH. By max looping wOETH, users are currently earning over 17% ROE.

Looping wOETH with Contango

Looping wOETH allows you to leverage up on APYs and compound returns from lending and pool incentives.

While this can be done manually, Contango makes this process far more seamless by incorporating flash loans. The dedicated looping platform allows you to leverage the pool automatically via a straightforward, user-friendly interface. Users can supply any of Contango’s supported assets to start earning.

Contango currently allows a maximum of 6.19x leverage for an ROE of >17%. Greater WETH liquidity from lenders would see borrowing costs decrease, significantly boosting potential ROE. Additionally, greater liquidity would also result in increased maximum leverage, due to a more favorable loan-to-value (LTV) ratio.


Visit the Contango Strategies dashboard and select wOETH to start looping. Deposit ETH, DAI, USDT, wOETH, or other supported ERC-20 assets to gain exposure to the Morpho wOETH market.

Looking Forward

The Morpho market is Origin Ether’s first blue-chip money market integration, offering users an opportunity to earn outsized rewards by harnessing OETH.

As a pure LST with a focus on superior yields and maintaining a strong peg, OETH is an ideal building block for DeFi protocols and borrowers looking to execute leveraged staking strategies. This integration highlights OETH’s unique potential to unlock vast yield opportunities for users on Ethereum mainnet and beyond.

Make sure to follow us on X and join the Origin discord server to keep up to date with future integrations.

Check out the Morpho wOETH/WETH pool: app.morpho.org

Loop wOETH with Contango: app.contango.xyz

Mint OETH: originprotocol.eth.limo

Yasthiel Devraj
Yasthiel Devraj
Originally released by Origin Protocol
Privacy policyTerms of service