Over the years in the crypto space, I’ve experienced it all—from the initial mining boom to the DeFi wave, without missing any major trend: Compound’s lending mining, Yearn’s yield aggregation, liquidity mining on top-tier DEXes... But every time, it’s been the same pattern—high APYs attract capital, subsidies end, and yields collapse, leaving heavy holders to take the loss.

Until recently, when I started researching a universal collateralized infrastructure protocol, I realized that the yield logic in DeFi might really have a different approach.

The basic design of such protocols isn’t complicated. Users deposit their liquidity assets—stablecoins, mainstream tokens, or even RWA tokens—and in return, they mint over-collateralized asset-backed tokens. It sounds routine, but the key lies in how the subsequent yield layer is designed.

You can further stake these tokens, transforming them into yield-bearing forms, corresponding to a basket of institutional-level trading strategies. What strategies? Basis arbitrage, funding rate capture, mainstream token hedging, or even RWA asset investments. This is completely different from farms that rely solely on releasing governance tokens and constantly expanding liquidity mining—here, the yields genuinely come from market opportunities, not protocol subsidies to keep the lights on.

The layered mechanism is quite ingenious. If you’re willing to lock your liquidity for a period, you can further boost yields through re-staking. It’s somewhat like the PT/YT splitting in some derivatives protocols, but more integrated, with less cumbersome interactions.

Initially, I was skeptical. Why could this model sustain real yields?

Yield aggregators like Yearn still heavily depend on external opportunities. Once market liquidity dries up or arbitrage opportunities vanish, yields shrink accordingly. But this protocol directly incorporates RWA strategies, effectively holding the source of yield generation in its own hands, rather than passively picking up market scraps.

The stablecoin component has its own stability mechanisms. Basis arbitrage on mainstream tokens always finds opportunities within market cycles, and funding rate fluctuations happen constantly—these aren’t pseudo-yields dependent on subsidies. RWA, although still in development, at least in theory, is viable: real assets generate real cash flows.

From this perspective, it’s completely opposite to Yearn’s approach. Yearn is a super intermediary, aggregating various profit-making opportunities in the market. This protocol is more about creating strategies, operating them independently, and bearing the risks oneself—users only need to trust the execution capability.

Of course, centralized strategies have their downsides. If the strategy design fails or market conditions change beyond expectations, yields can decline sharply. But compared to the awkwardness of “no subsidies at all,” this at least has a solid foundation.

On the flip side, current DeFi is stuck in this dilemma: high yields are bubbles, and genuine profit sources are hard to scale. The idea behind this protocol is to package institutional-level trading strategies for retail users, making yield generation verifiable and sustainable. Whether it can succeed in the long run depends on its performance over time, but the logic itself is definitely more reliable than pure mining.