eETH ARM LP TokenPrice

(ARM-WETH-EETH)

The eETH ARM LP Token is a yield-bearing receipt token representing a user's share in the automated vault managed through a collaboration between Origin and Ether.fi. When you deposit assets like ETH or eETH into the vault, you receive these tokens in return. They represent your proportional ownership of the vault’s total value. As the vault earns yield from its automated strategies, the value of the LP token increases relative to ETH, allowing holders to accumulate gains over time.

The vault utilizes an Automated Redemption Manager (ARM) strategy focusing on two main areas. First, it performs arbitrage by purchasing eETH at a discount on secondary markets when it trades below its 1:1 peg to ETH, subsequently redeeming it at full value. Second, when no profitable arbitrage exists, the vault lends its idle ETH to various decentralized lending markets to earn a consistent baseline yield. This ensures capital is always working to generate returns.

The ARM strategy is specifically designed to have near-zero impermanent loss. Unlike traditional liquidity pools on decentralized exchanges that involve volatile trading pairs, this vault functions more like a single-asset ETH vault. It only moves between ETH and eETH when it is profitable to do so through arbitrage. Because it deals with highly correlated assets and only executes trades that capture a spread, it avoids the typical risks associated with price divergence in standard AMM pools.

Yes. A significant advantage for investors is that holding the eETH ARM LP token typically allows for the continued accumulation of Ether.fi Loyalty Points and EigenLayer Points. The vault is structured so that users do not lose their eligibility for these rewards by participating. Furthermore, the vault often provides a boost or multiplier on Loyalty Points to incentivize liquidity, allowing users to maximize their reward potential while benefiting from automated yield strategies.

Withdrawals are asynchronous because the vault relies on official redemption queues for its arbitrage strategy. While the vault aims for an estimated processing window of approximately three days, this can vary based on market conditions. If the vault's internal liquidity buffer is exhausted or during periods of extreme demand, withdrawals may take longer, potentially matching the standard 7–14 day Ethereum exit queue required for full asset redemptions.

Yes, the eETH ARM LP token is a composable asset designed for use across the broader DeFi ecosystem. It can be utilized on various supported decentralized platforms for strategies such as yield trading or as collateral in integrated lending markets. This allows users to maintain their exposure to the vault's yield and points while simultaneously unlocking liquidity to borrow other assets or participate in additional yield-generating activities.