Beyond improving user experience, Origami makes these strategies entirely composable. Imagine being able to swap, LP and collateralise your automated leverage positions? Imagine earning BGT while engaged in pure leverage ‘n chill? Infinite possibilities. Infinite shenanigans. Outrageous rewards.
What is lov?
When depositing into Origami, lovTokens (Leveraged Origami Vault Tokens) are the receipt tokens that you will receive to represent your share of the vault reserves. By holding your receipt, you can redeem it for your share of the underlying strategy position!
E.g. for the testnet “HONEY 10x” strategy on bArtio you would receive lov-HONEY-a receipt tokens:
Every Origami Strategy Vault has its own lovToken, but every strategy is also sorted into a larger Strategy category (called a lovCollection) to help you quickly find related or similar Strategies. For instance, the same “HONEY 10x” strategy on bArtio is part of the larger lovBera Collection which features Berachain strategies. Some vaults may appear in more than one Collection due to overlap between the Collections.
To make the user experience even more seamless, lovBera Strategies such as hOHM will have liquidity pools appear @KodiakFI. This means users may gain exposure to the Origami vault strategy while bypassing the Origami dApp entirely. They could simply directly swap into or out of the lovToken via Kodiak or @0xoogabooga without ever entering or exiting an Origami vault. By creating this unprecedented capital efficiency, Origami lovTokens essentially become a new primitive for DeFi, setting the gold standard for liquid and stable leveraged positions. For these select lovTokens, holders will be able to provide liquidity on @Kodiak (and even stake the LP token into incentivised Berachain rewards vaults to earn BGT?), or use them across the larger ecosystem.
As an example, they could provide lovTokens as collateral on @beraborrow for POLLEN rewards or route the Kodiak LP token staking via @InfraredFinance to earn iBGT.
lovBera wen?
How Many Ways To Fold A Bear?
Strategies on Origami can be assigned to three broad types:
1. Maximum Leverage
2. Smart Leverage
3. No leverage
Maximum Leverage
This new type of vault is reserved for the select few tokens that can be safely max-looped or max-levered and made composable due to the unique nature of the underlying Protocol.
The first example of this is hOHM, thanks to the non-liquidatable fixed interest rate Cooler Loans that OlympusDAO provides for gOHM holders. Other tokens that can be assorted into this type of vault include LOCKS from
Goldilocks and iBGT from Infrared (but you didn’t hear that from me).
These tokens are the prime candidates for users to LP for rewards vault staking and to use across the larger Berachain ecosystem.
Smart Leverage
The second and most typical type of vault on Origami is well-known and loved by Origami users: Automated leverage farming of yield-bearing tokens (such as LRTs and LSTs) and Pendle PTs, as well as Directional Leverage on your favourite tokens like AAVE, BTC, and ETH.
@MorphoLabs (soon to be the backbone of Bend Origami is fully-integrated with third-party lenders such as, Berachain’s native lending facility), @zerolendxyz and @sparkdotfi, so there is an ocean of liquidity to tap into!
This type of vault is undoubtedly the easiest way to earn sky high yields on your HONEY, iBGT, sNECT, and other tokens, as well as the place to leverage long BERA without fear of getting liquidated by unexpected price volatility. Directional bets can be placed in the lovTendies Collection aka lovTendies.
In our next article, we will explain the mechanics of how exactly Origami makes this all happen.
No Leverage
The last Origami vault category does not utilise leverage but instead provides auto-compounding and auto-optimised yield farming. These strategies are still highly rewarding and perfect for cashing out profits from Directional vaults, diversifying your portfolio, or hedging your volatile token bets.
A current example is the Sky Auto-Farm, which gives a base yield of the Sky Savings Rate (12.5%) on uncapped liquidity and continually auto-switches to farm the most profitable Sky Farm.
The advantage of these no-leverage Strategies is that they have low fees, uncapped vault deposits, and are not subject to borrow interest rates. These vaults can easily accommodate 7 figure deposits without yield dilution, or hitting the deposit cap. An ideal product for DAO treasuries!
