Hey Edge readers,

DeFi yield opportunities are everywhere, but finding the best ones without spending hours researching, managing risks, and paying gas fees? That’s a challenge. This week, we’re introducing YO (Yield Optimizer), a protocol built to automate and optimize yield generation across multiple blockchains. With its first vault launching for ETH, YO reallocates funds to the best risk-adjusted opportunities, so you can earn more with less effort. In this issue, we’ll dive into how YO works and why it’s a game-changer in yield optimization

Stay sharp. 🫡

-The Exponential team

What is YO?

The pursuit of yield has always been central to finance. In traditional markets, financial institutions bundle investments into high-yield funds, but the best returns are often reserved for high-net-worth clients. DeFi aimed to disrupt this by democratizing access to yield, allowing anyone to earn from lending, staking, and liquidity provision. However, with thousands of protocols across multiple blockchains, navigating DeFi yield has become increasingly complex, demanding constant research, active management, and an understanding of risks like slippage, counterparty exposure, and gas fees.

That’s where YO (Yield Optimizer) comes in. YO is your personal yield strategist, automatically finding and managing the best risk-adjusted opportunities across multiple blockchains. Instead of manually hunting for opportunities, users deposit their assets into YO, and the protocol continuously reallocates them to maximize returns while staying within a smart risk framework.

At launch, YO is starting with an ETH vault, but it won’t stop there. BTC, USD, and SOL vaults are coming soon, meaning users will have more options to put their assets to work effortlessly.

How does YO optimize yield?

YO isn’t just another yield aggregator, it’s a cross-chain powerhouse that continuously hunts for the best returns while managing risk. Here's how it works:

1. Automated Rebalancing: YO uses a smart algorithm that constantly monitors yield opportunities and reallocates assets to the best-performing pools. If a yield source dries up, YO moves funds where they’ll work harder for you.

2. Risk-Aware Investing: Not all yields are created equal. YO integrates our risk rating system to evaluate thousands of risk factors, so you’re not blindly chasing high APYs without understanding the trade-offs.

3. Cross-Chain Efficiency: Unlike single-chain yield optimizers, YO taps into multiple blockchains, using bridges and smart routing to get you the best returns across Ethereum, Base, Arbitrum, Optimism, and Solana.

The best part? You don’t need to micromanage anything! YO automates everything, so your assets are always working for you in the most efficient way possible.

Introducing yoETH: Maximize your ETH yield

If you’re holding ETH and want to earn more without the hassle, yoETH is built for you. This is a pool that allows you to keep exposure to the price action of ETH while also earning above-average APY on your position. Basically, yoETH automatically allocates your ETH to the best risk-adjusted opportunities so you don’t even stress about it.

Why choose yoETH?

✅ Higher Yields: Earn up to 3x the market average for ETH without constantly switching strategies.
✅ Automated Optimization: Your ETH flows seamlessly into staking, lending, and liquidity pools for maximum returns.
✅ Diversified Exposure: Gain exposure to multiple liquid staking protocols and ETH yield sources in one simple token.
✅ Risk-Aware Strategy: YO’s algorithm ensures you’re getting the highest possible risk-adjusted yield—so you earn more without unnecessary risk.

By depositing into yoETH, you receive yoETH tokens, representing your share of this optimized ETH yield strategy. These tokens accrue value over time and can be used across DeFi while still earning returns.

If you’re bullish on ETH and want to put your assets to work without the stress, yoETH is your best choice. Deposit now and let YO handle the rest!

In the news 🗞️

• Trump-backed World Liberty Financial to launch USD1 stablecoin – World Liberty Financial, promoted by the Trump family, confirmed plans for USD1, a dollar-pegged stablecoin backed by U.S. treasuries and cash reserves. Custodied by BitGo, USD1 will launch on Ethereum and BNB Chain. While not owned by Trump, he and his sons hold WLFI tokens and will earn future revenues. The project aims to compete with Tether and Circle but faces scrutiny over its crypto ties.

• USDT0 launches on OP superchain – The crosschain stablecoin USDT0 is now live on Optimism’s Superchain, expanding Tether’s reach across Ethereum’s layer-2 ecosystem. Superchain, which currently handles over half of Ethereum L2 transactions, is expected to reach 80% this year. USDT0, a bridged version of USDt, debuted on Kraken’s Ink L2 in January. Its deployment is set to attract more assets and applications, reinforcing stablecoins’ role in DeFi growth.

• Hyperliquid Token Tanks as Another Vault Attack Sparks Controversy –

  Hyperliquid’s HLP vault briefly faced a $10 million loss after a manipulated short on JELLYJELLY triggered a short squeeze. The exchange intervened, delisting the token and settling at a profit, sparking debate over its decentralization. Binance’s mid-attack listing of JELLYJELLY perpetuals fueled speculation of CEX interference, while critics questioned Hyperliquid’s selective intervention.

Trending 📈