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Yield Strategies

Coming Soon

Encrypto's Yield Engine allocates user funds across a curated set of DeFi strategies. Each strategy is vetted for security, liquidity, and risk-adjusted return.

Strategy Selection Criteria​

Before a protocol or strategy is added to Encrypto's yield pool, it must meet the following requirements:

CriteriaRequirement
Security auditAt least one independent audit from a top-tier firm (Trail of Bits, OpenZeppelin, Spearbit)
TVL> $50M total value locked
Track record> 6 months of operation without exploit
LiquidityWithdrawals complete within 24 hours
Smart contractOpen source, verified on-chain
InsuranceProtocol-level coverage preferred (Nexus Mutual, etc.)

Strategy Types​

Lending Markets​

Deposit USDC into established lending protocols and earn interest from borrowers.

  • Risk: Low
  • Expected APY: 3-6%
  • Liquidity: Instant withdrawal (subject to utilization)
  • Protocols: Aave, Compound, Morpho

Stablecoin LP​

Provide liquidity to stable-stable pairs (USDC/USDT, USDC/DAI) on DEXs. Minimal impermanent loss due to price correlation.

  • Risk: Low-Medium
  • Expected APY: 4-8%
  • Liquidity: Instant withdrawal
  • Protocols: Curve, Aerodrome

Restaking​

Stake ETH or LSTs (stETH, rETH) through restaking protocols for additional yield on top of base staking rewards.

  • Risk: Medium
  • Expected APY: 6-12%
  • Liquidity: Variable (depends on unbonding period)
  • Protocols: EigenLayer ecosystem, Symbiotic

Concentrated Liquidity​

Active LP management in concentrated ranges on Uniswap V3-style pools. Higher returns but requires active rebalancing.

  • Risk: Medium-High
  • Expected APY: 10-25%
  • Liquidity: Instant
  • Note: Managed by Encrypto's automated position manager

Rebalancing​

The Yield Engine continuously monitors deployed positions and rebalances when:

  • A strategy's APY drops below the threshold for its risk tier
  • A protocol's TVL decreases significantly (potential risk signal)
  • A higher-yield opportunity of equal or lower risk becomes available
  • The user's risk preference changes

Rebalancing is gas-optimized and executed on L2 to minimize transaction costs.

Yield Distribution​

Yield accrues to the user's Earning Balance daily. Users can:

  • Auto-compound — Reinvest yield into the same strategy (default)
  • Auto-transfer — Move yield to Spending Balance for card use
  • Manual claim — Claim accrued yield on demand