How It Works

Secure, Efficient, and Yield-Optimized

YieldFi simplifies access to DeFi’s best yield opportunities through a secure, automated, and institutionally structured process.

  1. Deposit & Tokenization – Users deposit whitelisted assets into the vault and receive a yield index token (ERC-4626 on Ethereum, ERC-20 on other chains), representing their share of the vault.

  2. Secure Custody – All assets are transferred to whitelisted multi-sig wallets, requiring a minimum of 2 out of 4 signers to approve any transaction, ensuring maximum security and transparency.

  3. Automated Yield Deployment – Assets from multi-sig wallets are allocated into whitelisted, blue-chip DeFi protocols to acquire yield-bearing assets, following a predefined vault strategy.

  4. Daily Yield Distribution – Returns from different yield-bearing assets are pooled and settled daily to the vault, where the index token is priced mark-to-market to reflect real-time yield accrual.

  5. Continuous Optimization – The system is monitored 24/7 to dynamically optimize returns while minimizing risks.

Security First: Eliminating Smart Contract Risk

YieldFi holds zero user assets in its smart contracts (except for processing redemption requests). This virtually eliminates self smart contract risk.

Last updated