Yield Explanation
YieldFi generates yield on stablecoins by combining DeFi yield with delta-neutral CeFi strategies:
DeFi Yield: A portion of assets is deployed into trusted protocols like Pendle, Ethena, and RWA platforms to earn competitive on-chain returns.
Delta-Neutral CeFi Trading: The remaining assets are mirrored on centralised exchanges via MPC custody solutions (Copper, Ceffu) and deployed into delta-neutral strategies. Let's understand with an example:
Buy 1 BTC on the spot market at $30,000 and sell 1 BTC on the futures market at $30,000.
Let's say the futures funding rate is 0.05% per day, this position earns $15/day without market exposure.
$15/day on base capital of $30,000 means a yield of $15 x 365 / $30,000 i.e. 18.25%
Price movements offset perfectly (e.g., BTC rises to $31,000 → spot gains $1,000, futures loses $1,000), ensuring no directional risk.
Optimised Yield: Returns from DeFi and CeFi strategies are combined and distributed to yUSD holders on block by block basis.
With institutional-grade custody, multiple audits, and zero assets left idle, YieldFi delivers high, sustainable yields while minimising risk—proving that consistent returns don’t require exposure to market volatility.
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