# What is YieldNest? YieldNest is a next-generation DeFi protocol that offers simple, high-yielding, risk-adjusted restaking and DeFi strategies. It merges DeFi's best strategies into single, unified, high-powered assets with L1 settlement assurances. **Mission** To simplify DeFi for all users. We do this by delivering secure, high-yield strategies through easy-to-use AI-powered products, robust security, and continuous innovation. **Vision** Our vision is to create a user-friendly protocol that anyone can access. Providing high-yielding DeFi assets in a non-custodial, risk-adjusted manner to retail and institutional users alike. By offering single, unified assets with exposure to multiple protocols and chains simultaneously, we remove complexity and unlock DeFi’s true potential for everyone. We prioritize simplicity, transparency, risk-adjusted, high yields, and security, enabling more people to benefit from decentralized finance in a fully self-sovereign way. **Join us on the journey toward a more inclusive and rewarding DeFi future.**\ 🌐[ **Website**](https://www.yieldnest.finance/)\ 📱[ **YieldNest App**](https://app.yieldnest.finance/)\ 💬[ **Discord**](https://discord.gg/ayAZuQgFaE)\ 🐦[ **Twitter**](https://twitter.com/YieldNestFi)\ 📢[ **Telegram**](https://t.me/YieldNest)\ 📖[ **Github**](https://github.com/orgs/yieldnest)

Join YieldNest today!

# Next-gen Restaking ## The Original Vision of Restaking Restaking was initially conceived as a mechanism to enhance blockchain security by enabling the reuse of staked assets across multiple applications. Platforms like EigenLayer pioneered this concept, extending cryptoeconomic security beyond individual chains. This innovation allowed validators to restake their assets, providing additional security assurances while earning extra rewards. The fundamental goal was to reinforce network security without requiring fresh capital inflows. ## Beyond Shared Security: The Expanded Role of Restaking While restaking has successfully strengthened network security, its potential reaches far beyond its original use case. Traditional models focus primarily on validator-based security, often limiting capital efficiency. However, restaking can be leveraged to unlock liquidity, optimize yield, and enhance capital allocation across DeFi. By redeploying staked assets into multiple yield-bearing strategies, restaking evolves into an active tool for maximizing returns while maintaining security guarantees. ## YieldNest’s Approach: Restaking as a Capital Efficiency Engine YieldNest builds on restaking’s foundation with MAX LRTs—composable, AI-driven liquid restaking strategies. These strategies dynamically optimize risk, auto-compound returns, and improve liquidity efficiency across multiple protocols and chains. This transforms restaking from a passive security function into an active capital management framework, enabling intelligent capital reallocation for sustained, risk-adjusted returns. ## The Future of Restaking in DeFi Restaking is evolving into a multi-purpose financial instrument, balancing security and yield generation. YieldNest envisions a DeFi landscape where restaked assets are actively utilized for liquidity provisioning, lending, and automated portfolio management. By integrating AI-driven strategy execution with restaking’s composability, MAX LRTs ensure sustainable capital efficiency while preserving Layer 1 settlement assurances. As DeFi matures, restaking will transcend its security-first role, becoming a cornerstone of high-yield, automated DeFi infrastructure—a transformation spearheaded by YieldNest’s structured and scalable solutions. ### Further Reading on Restaking in DeFi For an in-depth understanding of what his truly means and how YieldNest envisions it, we recommend exploring our collaborative research with Llama Risk: 🔗[ Beyond Shared Security: The Evolving Role of Restaking in DeFi](https://www.llamarisk.com/research/restaking-in-defi)

Beyond Shared Security: The Evolving Role of Restaking in DeFi

Additionally, we've conducted a comprehensive assessment of YieldNest MAX LRTs, detailing how our protocol implements its mission and vision: 🔗[ YieldNest General Protocol Assessment](https://www.llamarisk.com/research/yieldnest-general-assessment)

YieldNest General Protocol Assessment

Alea Research: MAX LRTs: Yield Optimization 2.0

# YieldNest Protocol Overview YieldNest is a next-generation liquid restaking protocol that consolidates DeFi and restaking strategies into a single liquid asset. At its core, YieldNest introduces MAX LRTs, designed to optimize risk-adjusted returns by dynamically balancing between DeFi and restaking strategies. The protocol’s modular architecture, built entirely in-house, ensures seamless integration, robust security, and adaptability as DeFi continues to evolve. YieldNest is currently focused on four MAX LRTs, each targeting a major asset category: * **ynETH MAX (ynETHx):** ETH-based strategies * **ynBTC MAX (ynBTCx):** BTC-based strategies * **ynUSD MAX (ynUSDx):** USD-based strategies * **ynBNB MAX (ynBNBx):** BNB-based strategies *Additional MAX LRTs can be introduced in the future, subject to governance decisions by the YieldNest DAO.* Each MAX LRT consists of multiple underlying LRT strategies, offering both diversified and isolated exposure to specific yield sources. We've conducted a comprehensive assessment of YieldNest MAX LRTs, detailing how our protocol implements its mission and vision: 🔗[ YieldNest General Protocol Assessment](https://www.llamarisk.com/research/yieldnest-general-assessment) ### Core Principles of MAX LRTs MAX LRTs are built around three fundamental principles: 1. **Highest Risk-Adjusted Returns** * Strategies prioritize sustainability, resilience, and yield optimization, adapting to changing market conditions. 2. **Security & Flexibility** * 24/7 monitoring by **HyperNative's** threat detection and incident response systems ensures real-time risk mitigation, backed by a **swarm of AI agents** that continuously feed data and learn. * Proactive threat prevention allows assets to be ejected back to their base asset before any principal loss or yield disruption. * Audited by top-tier security firms and backed by an independent risk team. 3. Inn**ovation in Capital Efficiency** * YieldNest maximizes asset productivity while maintaining risk-conscious capital deployment. * AI-driven parameter tuning and strategic reallocation optimize liquidity utilization. For those seeking a deeper understanding of YieldNest MAX LRTs, we have conducted a comprehensive protocol assessment outlining its mechanics and innovations: ### NEST AI: AI-Driven Capital Management Beyond passive yield aggregation, YieldNest’s NEST AI plays a crucial role in strategy execution by: ✅ Dynamically rebalancing between restaking and DeFi protocols\ ✅ Optimizing collateral allocation for capital efficiency\ ✅ Executing arbitrage strategies across MAX LRTs\ ✅ Monitoring systemic risk and automatically adjusting risk parameters This AI-driven approach ensures maximum yield optimization while maintaining Layer 1 settlement assurances. # MAX Vaults The Apex of Yield Optimization ### What are MAX LRTs? MAX LRTs are AI-driven, composable liquid restaking tokens that unify multiple yield sources and strategies into highly efficient assets. These tokens simplify DeFi by abstracting complexity, allowing users to access risk-adjusted, auto-compounded returns without actively managing allocations. * Automatic rebalancing to optimize capital allocation across strategies. * Curated strategies selected based on risk-adjusted returns. * Continuous improvements through monitoring and strategy adjustments.

Source: YieldNest Github - High level architecture MAX LRTs

Think of MAX LRTs as an evolving, intelligent DeFi engine constantly analyzing data, discovering new strategies, and optimizing capital deployment. As more data is fed into the system, it learns, adapts, and improves, refining its strategies over time. New strategies are initially introduced as external integrations, rigorously tested, and monitored. Once a strategy matures and demonstrates long-term safety and efficiency, it can be enshrined within the MAX LRT, operating under the governance and oversight of the specific MAX LRT subDAO. The flexible, modular architecture of MAX LRTs allows strategies to sync back to their main settlement layer seamlessly. For example, ynETH MAX (ynETHx), an ETH-based strategy, settles on Ethereum L1 but can deploy and integrate strategies across Ethereum L2s or any chain capable of propagating trustless data back to the MAX LRT. The true elegance of MAX LRTs lies in their self-expanding nature. As the system autonomously integrates new strategies, it continuously evolves. Over time, this hybrid model combining AI automation with governance oversight could lead to a future where MAX LRTs operate fully autonomously, redefining yield optimization at the highest level. See the illustration below for a visual representation of how MAX LRTs are positioned to become the Apex of Yield Optimization.
### L1 Settlement & Why It Matters In traditional finance, fund administrators have the luxury of time to reconcile net asset values (NAVs), settle trades, and consolidate accounting records within predefined timeframes. However, in DeFi, where markets operate 24/7, with constant price fluctuations, instant liquidity movements, and automated execution, settlement mechanisms must function in real-time to maintain cohesion, accuracy, and transparency. MAX LRTs serve as the "glue" that holds everything together—ensuring that all underlying strategies, asset states, and accounting records remain synchronized, verifiable, and continuously updated across their respective base chains. Without this real-time settlement layer, fragmented data and asynchronous state updates could introduce inefficiencies, inconsistencies, or security vulnerabilities. MAX LRTs address this by providing a unified framework that consolidates all positions, tracks NAV in real-time, and ensures seamless accounting across multiple integrated DeFi strategies. By leveraging AI-driven optimization, automated rebalancing, and L1 settlement guarantees, MAX LRTs maintain structural integrity, acting as the backbone for risk-adjusted, automated capital deployment in an always-on DeFi environment. ### MAX LRT Architecture Each MAX LRT follows a unique strategy composition and management framework. The base configuration of every MAX LRT is defined by: * **Price Asset:** The asset in which the MAX LRT is denominated *(e.g. ETH).* * **Primary Underlying Asset:** The core yield-generating asset *(e.g. WETH)*. * **Accounting Layer:** The Layer 1 settlement chain *(e.g. Ethereum L1)*. * **Other Underlying Assets:** Additional assets integrated for yield optimization. Additionally, we've conducted a comprehensive assessment of YieldNest MAX LRTs, detailing how our protocol implements its mission and vision: 🔗[ YieldNest General Protocol Assessment](https://www.llamarisk.com/research/yieldnest-general-assessment) For example, in the case of ynETHx, users deposit underlying assets and receive ynETHx share tokens denominated in ETH. MAX LRTs are built for composability, enabling seamless tracking and accounting of all underlying strategies within a single liquid token while maintaining L1 settlement assurances. Internal modules like the RateProvider ensure accurate pricing and conversions, while a Coprocessor manages asset allocation, strategy execution, and accounting. This system is the foundational infrastructure enabling MAX LRTs to support multichain strategies seamlessly, optimizing capital efficiency across diverse DeFi ecosystems. The Buffer Strategy is an ERC-4626-compliant mechanism designed to provide immediate liquidity for withdrawals. It ensures that a portion of the MAX LRT’s underlying assets remains in readily accessible, yield-generating strategies, allowing users to redeem their MAX LRT positions without delays. Effectively, the Buffer Strategy functions as a liquidity reserve, balancing capital deployment efficiency with the need for rapid, frictionless redemptions. To maintain stability, any stress on the buffer will be mitigated through liquidity pools or queue systems, where participants can benefit from withdrawal flows. This ensures sustainable liquidity management while reinforcing MAX LRTs’ ability to maintain deep liquidity, even under volatile market conditions. When the buffer runs low, assets from other strategies are removed to refill the buffer. This can take anywhere from 1 - 10 days from the time the refill is initiated. If you are in a hurry to unstake you can swap ynETHx on our swap page or your favorite swap router.

source: ynETHx diagram, YieldNest docs

### **MAX LRT Withdrawal Flow** All YieldNest MAX LRT tokens (e.g., ynETHx, ynBNBx, ynUSDx, ynBTCx) share a universal withdrawal mechanism that utilizes a dedicated withdrawal buffer to ensure liquidity. Each MAX LRT keeps a portion of its assets readily available either in the base asset vault or deployed to a liquid strategy (e.g., lending markets) so that, under normal conditions, users can withdraw instantly. Withdrawals from the buffer are processed on a first-come, first-served basis until the buffer is fully depleted. If many users withdraw at once, the buffer may become exhausted. In such cases, further withdrawals must wait until the buffer is replenished, as the protocol rebalances assets from yield strategies back into the buffer to restore liquidity. #### **Upcoming Improvements** **Dynamic Withdrawal Fees**\ A variable fee that increases as the buffer depletes. The fee increases more sharply only when the buffer is nearly empty. This ensures that withdrawals are always possible, but discourages opportunistic or large withdrawals during periods of low liquidity. **Withdrawal Queue (0% Fee Option)**\ A first-in, first-out (FIFO) queue that users can join to withdraw without paying a fee if they’re willing to wait. When the buffer is empty or a user opts for a fee-free exit, their request enters the queue and is processed once the buffer is refilled. This withdrawal flow strikes a balance between capital efficiency and liquidity availability. Most assets remain invested to generate yield, while a portion is reserved for redemptions. Users have flexibility: * Exit immediately with a dynamic fee, or * Wait in the queue for a fee-free withdrawal. This system is designed to maintain deep liquidity, protect token value, and ensure robust performance even during periods of stress. ### Composability & Governance The YieldNest DAO retains full flexibility to add or remove strategies and MAX LRTs as the ecosystem evolves. Each MAX LRT is designed to transition into its own SubDAO, maintaining independent governance and strategy execution. This structure ensures a focused, efficient, and low-risk framework while maximizing utility and capital efficiency. There are no predefined strategy limitations for any MAX LRT. Each SubDAO has full autonomy to explore and integrate new strategies, prioritizing AI-enhanced, risk-adjusted returns. Autonomous AI agents will continuously optimize restaking allocations, rebalance DeFi exposure, and dynamically adjust parameters based on real-time market conditions and risk assessments. Initially, MAX LRTs will operate as structured products within the YieldNest ecosystem. Over time, governance will decentralize, with each SubDAO managing its respective MAX LRT independently, leveraging AI-driven governance support for strategic decision-making. This modular governance model ensures that MAX LRTs remain dynamic, adaptable, and aligned with market conditions, enabling: ✅ Independent governance for each MAX LRT, ensuring strategic autonomy.\ ✅ Parameter adjustments driven by market dynamics and risk assessments.\ ✅ AI-enhanced voting mechanisms to facilitate data-driven decision-making. By progressively shifting governance to SubDAOs, YieldNest ensures that MAX LRTs remain scalable, resilient, and optimized for long-term growth in the DeFi ecosystem.

YieldNest DAO/subDAO's

### Integrating New Strategies into MAX LRTs YieldNest’s vaults are built with a **modular architecture**, so new yield strategies can be plugged in without upgrading the core vault contract. To add a strategy, a developer first writes and deploys the strategy contract (following the required interface/standards), then submits a proposal to the YieldNest DAO detailing the strategy’s design, security review, and expected returns. * **Governance Review & Timelock:** The community reviews and votes on the strategy proposal. If approved, the integration is executed through the on-chain timelock. This means the approved actions (adding the strategy) are queued and delayed by a timelock contract, giving the community time to inspect the change. In practice this delay reinforces security and transparency – all vault modifications (including adding strategies or changing rules) are subject to the timelock. * **Whitelisting & Guard Enforcement:** Once the timelock period ends, governance executes the transaction that formally integrates the strategy. This typically involves adding the new strategy’s address to the MAX vault and updating the **Transaction Guard** rules. The Guard (a validation engine) enforces a strict whitelist-based rule set. In other words, it only allows pre-approved calls to the new strategy contract (for example, functions to deposit or withdraw funds). Any disallowed or unexpected actions will be rejected, ensuring the vault only interacts with the strategy in the intended way. * **Funding & Activation:** After whitelisting, the vault (or its manager) can deposit assets into the strategy. Funds are transferred on-chain into the new strategy contract, and it begins generating yield under the vault’s management. Because the vault is modular, there is **no need to upgrade the base vault contract** – the new strategy simply joins as an additional module. This means the core vault logic and token remain unchanged, even as new strategies come online. Throughout this process, every step is on-chain and fully auditable. Users can verify contract deployments, proposal votes, timelock executions, and funding transactions on-chain. For example, one can inspect the MAX LRT’s vault address and asset allocations via blockchain explorers or portfolio trackers (see, for instance, the ynETHx vault’s DeBank profile for a live view of its holdings and flows: ). In summary, integrating a new strategy is a **modular, governance-controlled process** secured by YieldNest’s Guard engine and timelock that keeps the MAX vault safe while transparently expanding its yield opportunities # ynETH MAX - ynETHx ETH-based strategies that Settle on ETH L1 **ynETHx is a MAX LRT designed to maximize returns on ETH and LSD-based assets by integrating restaking and DeFi strategies into a single, capital-efficient, composable token. While restaking serves as a core primitive, ynETHx extends beyond traditional staking models, dynamically reallocating capital across yield-generating opportunities to unlock DeFi’s full potential.** The primary objective of ynETHx is to capture staking rewards and continuously optimize capital efficiency through modular strategy execution, AI-driven risk management, and real-time liquidity adjustments. By leveraging an evolving ecosystem of financial primitives, ynETHx ensures sustainable, high-yielding, and composable DeFi exposure while maintaining Layer 1 settlement assurances. Yields are targeted within a 10–15% risk-adjusted APY range but can fluctuate above or below this range based on market conditions, strategy performance, and DeFi incentives. The ynETHx Strategies are managed by the YieldNest DAO/subDAOs.

ynETHx advanced page

#### **Contract Address:** [`0x657d9ABA1DBb59e53f9F3eCAA878447dCfC96dCb`](https://etherscan.io/address/0x657d9ABA1DBb59e53f9F3eCAA878447dCfC96dCb) *** ### **Base Configuration - ynETHx** | Parameter | Specification | | ---------------------------- | ------------------------ | | **Price Asset** | WETH | | **Primary Underlying Asset** | WETH | | **Accounting Layer** | Ethereum L1 | | **Underlying Assets** | ynETH, ynLSDe, ETH, WETH | We've comprehensively assessed YieldNest MAX LRTs, focusing on how products like ynETHx generate yield, are designed, and maintain security. 🔗[ **YieldNest General Protocol Assessment**](https://www.llamarisk.com/research/yieldnest-general-assessment) Below is a high-level overview of its key features, architecture, and how it manages security & risk.

ynETHx high lvl arcitecture

### **Key Features** ynETHx is designed to maximize capital efficiency by aggregating ETH and LSD assets into a single, high-performance liquid instrument. It optimizes exposure across restaking and DeFi strategies, ensuring continuous yield generation. With a multi-layered revenue model, ynETHx captures staking rewards, DeFi yields, and additional incentives such as airdrops and governance rewards. To ensure continuous risk mitigation, ynETHx integrates HyperNative’s threat detection and incident response systems, which operate 24/7 to identify and neutralize risks before they impact capital. This security layer is backed by a swarm of AI agents that continuously analyze market conditions, optimize allocations, and learn from new data to enhance yield efficiency over time. ynETHx is fully ERC-4626 compliant, making it interoperable with DeFi protocols for liquidity provision, lending, and structured yield generation. Users can redeem ynETHx for ETH plus accumulated rewards or trade it freely across DeFi platforms, with built-in liquidity buffers ensuring smooth exits even in volatile conditions. #### **Withdrawal Flow** ynETHx uses a dedicated withdrawal buffer to enable instant redemptions on a first-come, first-served basis. A portion of assets is kept liquid, allowing users to exit without delay under normal conditions. If the buffer is depleted, withdrawals are paused until it is replenished through rebalancing. Learn more about the MAX LRT Withdrawal Flow: *** ### **ynETHx Architecture** ynETHx operates through an automated and modular framework that ensures efficient capital deployment and risk-adjusted returns by: * Automating rebalancing to optimize exposure across ETH staking, DeFi, and restaking strategies. * Adjusting market-making mechanisms dynamically, capturing inefficiencies for higher yields. * Leveraging HyperNative’s security infrastructure, ensuring continuous monitoring and proactive threat mitigation. * Using a swarm-based AI model to continuously analyze risk factors, liquidity trends, and market conditions for performance optimization. ### Value Accrual ynETHx auto-compounds rewards, enhancing token value over time. As rewards are distributed and compounded, the value of ynETHx grows. Value Accrual Example (assuming 12.5% APY for ynETHx) | **Restaking time** | **Amount ynETHx** | **Value in ETH** | | ------------------ | ----------------- | ---------------- | | Day 0 | 1 ynETHx | 1 ETH | | Day 180 | 1 ynETHx | 1.0625 ETH | | Day 365 | 1 ynETHx | 1.125 ETH | ### **Security & Risk Management** ynETHx’s multi-layered security framework is designed to protect capital and maintain system integrity through: * HyperNative’s AI-driven threat detection and automated incident response, ensuring real-time security monitoring. * Guard Validation Engine, which secures MAX LRT transactions with a whitelist-based rule system, preventing unauthorized actions and identifying risks in real-time. It enforces strict access controls, customizable validation logic, and fail-safe defaults to enhance security, governance, and adaptability. * On-chain liquidity buffers, providing efficient exits and stable capital flows. * Automated rebalancing mechanisms, ensuring dynamic exposure adjustments to protect against volatility and systemic risks. *** ynETHx represents the next evolution of capital-efficient DeFi strategies, combining automated rebalancing, real-time risk mitigation, and deep composability into a single, high-performance asset designed for sustainable yield optimization. # ynBNB MAX - ynBNBx BNB-based strategies that Settle on BNB L1 **ynBNBx is a MAX LRT designed to maximize returns on BNB and its derivatives by integrating restaking and DeFi strategies into a single, capital-efficient, composable token. While restaking serves as a core primitive, ynBNBx extends beyond traditional staking models, dynamically reallocating capital across yield-generating opportunities to unlock DeFi’s full potential.** The primary objective of ynBNBx is to capture staking rewards and continuously optimize capital efficiency through modular strategy execution, AI-driven risk management, and real-time liquidity adjustments. By leveraging an evolving ecosystem of financial primitives, ynBNBx ensures sustainable, high-yielding, and composable DeFi exposure while maintaining Layer 1 settlement assurances on BNB Chain. Yields are targeted within a risk-adjusted APY range, but actual returns can fluctuate based on market conditions, strategy performance, and DeFi incentives. The ynBNBx strategies are actively managed by the YieldNest DAO/SubDAOs to adapt to changing opportunities while maintaining security and efficiency.

ynBNBx advanced page

#### **Contract Address:** [`0x657d9ABA1DBb59e53f9F3eCAA878447dCfC96dCb`](https://bscscan.com/address/0x32C830f5c34122C6afB8aE87ABA541B7900a2C5F) *** ### **Base Configuration - ynETHx** | Parameter | Specification | | ---------------------------- | ----------------------------- | | **Price Asset** | wBNB | | **Primary Underlying Asset** | wBNB | | **Accounting Layer** | BNB L1 | | **Underlying Assets** | wBNB, slisBNB, clisBNB, asBNB | We've comprehensively assessed YieldNest MAX LRTs, focusing on how products like ynBNBx generate yield, are designed, and maintain security. 🔗[ **YieldNest General Protocol Assessment**](https://www.llamarisk.com/research/yieldnest-general-assessment) Since ynBNBx was our first MAX LRT we released a separate Asset Risk Assessment: YieldNest ynBNBx for more detailed information.\ \ [ **🔗 Asset Risk Assessment: YieldNest ynBNBxessment**](https://www.llamarisk.com/research/asset-risk-ynbnbx) Below is a high-level overview of its key features, architecture, and how it manages security & risk.

High lvl arcitecture ynBNBx

### **Key Features** ynBNBx is designed to maximize capital efficiency by aggregating BNB and its derivatives into a single, high-performance liquid instrument. It optimizes exposure across restaking and DeFi strategies, ensuring continuous yield generation. * Multi-Layered Yield Optimization – Captures staking rewards, DeFi yields, and additional incentives, including airdrops and governance rewards. * Automated Rebalancing & Market Efficiency – Dynamically reallocates wBNB, slisBNB, clisBNB, and asBNB to optimize returns while mitigating risk. * Security & Risk Mitigation – HyperNative’s 24/7 monitoring and automated incident response proactively identify and neutralize risks before they impact capital. * Guard Validation Engine – Implements whitelist-based transaction security to prevent unauthorized actions, enforce access controls, and protect governance integrity. * DeFi Integration & Liquidity – ERC-4626 compliant, enabling seamless use in lending, liquidity pools, and structured yield products. Users can redeem ynBNBx for wBNB plus accumulated rewards or trade it freely across DeFi platforms, with built-in liquidity buffers ensuring smooth exits even in volatile conditions. #### **Withdrawal Flow** ynBNBx uses a dedicated withdrawal buffer to enable instant redemptions on a first-come, first-served basis. A portion of assets is kept liquid, allowing users to exit without delay under normal conditions. If the buffer is depleted, withdrawals are paused until it is replenished through rebalancing. Learn more about the MAX LRT Withdrawal Flow: *** ### **ynBNBx Architecture** ynBNBx operates through an automated and modular framework that ensures efficient capital deployment and risk-adjusted returns by: * Automating rebalancing to optimize exposure across BNB staking, DeFi, and restaking strategies. * Smart market-making mechanisms dynamically adjust positions, capturing inefficiencies for higher yields. * HyperNative’s security infrastructure provides continuous monitoring and proactive threat mitigation. * Coprocessor integration enables real-time liquidity analysis and automated strategy execution, optimizing capital efficiency. * Buffer Strategy for Liquidity Management – Maintains readily accessible liquidity, ensuring instant redemptions without disrupting underlying positions. ### Value Accrual ynBNBx auto-compounds rewards, enhancing token value over time. As rewards are distributed and compounded, the value of ynBNBx grows. Value Accrual Example (assuming 12.5% APY for ynBNBx) | **Restaking time** | **Amount ynBNBx** | **Value in BNB** | | ------------------ | ----------------- | ---------------- | | Day 0 | 1 ynBNBx | 1 BNB | | Day 180 | 1 ynBNBx | 1.0625 BNB | | Day 365 | 1 ynBNBx | 1.125 BNB | *** ### **Security & Risk Management** ynBNBx’s multi-layered security framework is designed to protect capital and maintain system integrity through: * HyperNative’s AI-driven threat detection and automated incident response, ensuring real-time security monitoring. * Guard Validation Engine, which secures MAX LRT transactions with a whitelist-based rule system, preventing unauthorized actions and identifying risks in real time. It enforces strict access controls, customizable validation logic, and fail-safe security defaults to enhance security, governance, and adaptability. * On-chain liquidity buffers, ensuring stable exits and efficient capital flows under all market conditions. * Automated risk-adjusted rebalancing mechanisms, dynamically adjusting exposure to protect against volatility and systemic risks. * Automated strategy ejection, ensuring instant fallback to wBNB in case of protocol failures or security threats. *** ynBNBx represents the next evolution of capital-efficient DeFi strategies, combining automated rebalancing, real-time risk mitigation, and deep composability into a single, high-performance asset designed for sustainable yield optimization. # ynBTC MAX - ynBTCx \[WIP] BTC-based strategies that Settle on BTC Core L1 **WIP's planned release is in Q2 2025.**\ For any suggested asserts that we need to look into, Please post a proposal on: Due to high demand, ynBTCk, a Kernel restaking-focused strategy, is already live on BNB Chain and will eventually serve as an underlying strategy for ynBTCx. The ultimate goal for ynBTCx is BTC Core L1 settlement.\ \ See here ynBTCk advanced page:

ynBTCx - WIP

#### **Contract Address:** `WIP` *** ### **Base Configuration - ynBTCx** | Parameter | Specification | | ---------------------------- | --------------------------------------------------- | | **Price Asset** | BTC | | **Primary Underlying Asset** | BTC | | **Accounting Layer** | BTC Core L1 | | **Underlying Assets** | BTC, tBTC, cbBTC, dlcBTC, wBTC, lBTC, BTCb, solvBTC | We've comprehensively assessed YieldNest MAX LRTs, focusing on how products like ynBTCx generate yield, are designed, and maintain security. 🔗[ **YieldNest General Protocol Assessment**](https://www.llamarisk.com/research/yieldnest-general-assessment) Below is a high-level overview of its key features, architecture, and how it manages security & risk. ### **Key Features** ... *** ### **ynETHx Architecture** ... ### **Security & Risk Management** ... # ynUSD MAX - ynUSDx USD-based strategies that settle on Ethereum L1 ynUSDx is a MAX LRT designed to deliver optimized, risk-adjusted yield from stablecoins. By aggregating top-tier DeFi and RWA strategies spanning lending, liquidity provision, and yield farming, ynUSDx transforms stablecoin exposure into a single liquid, composable asset. Built on Ethereum L1 for security and settlement finality, it targets APYs of 4–15%+ while giving users the flexibility to scale yield exposure up the risk curve. With its modular design, auto-compounding engine, and dynamic capital allocation, ynUSDx turns passive stablecoins into productive, yield-generating assets, unlocking utility, transparency, and sustainable growth for DeFi users.

ynUSDx advaced page

#### **Contract Address:** [0x3DB228FE836D99Ccb25Ec4dfdC80ED6d2CDdCB4b](https://etherscan.io/address/0x3DB228FE836D99Ccb25Ec4dfdC80ED6d2CDdCB4b) We've comprehensively assessed YieldNest MAX LRTs, focusing on how products like ynUSDx generate yield, are designed, and maintain security. 🔗[ YieldNest General Protocol Assessment](https://www.llamarisk.com/research/yieldnest-general-assessment) *** ### **Base Configuration - ynUSDx** | Parameter | Specification | | ---------------------------- | ------------- | | **Price Asset** | USDC | | **Primary Underlying Asset** | USDC | | **Accounting Layer** | Ethereum L1 | | **Underlying Assets** | USDC | Below is a high-level overview of its key features, architecture, and how it manages security & risk. *** ### Key Features * Multi-asset USD exposure: Uses top stablecoins and interest-bearing derivatives. * Auto-compounding: All rewards are harvested and redeployed for maximum yield. * Flexible Strategy Engine: Capital allocated dynamically across strategies. * Buffer-Based Withdrawals: A portion of assets remains liquid to enable fast redemptions. * ERC-4626 Compliant: Full compatibility with external DeFi protocols. * Governance Controlled: YieldNest DAO can vote on strategies, assets, and parameters. * Guard Validation Engine: On-chain security layer that enforces trusted execution and governance-approved rules across all MAX LRT transactions. *** ### Strategy Architecture * Lending Strategy: Morpho USDC Core Vault ([link](https://app.morpho.org/ethereum/vault/0x8eB67A509616cd6A7c1B3c8C21D48FF57df3d458/gauntlet-usdc-core)) * Super USD strategy: SuperUSDC optimizes USDC yield across blue-chip lending protocols on Ethereum by automatically rebalancing between vaults using predictive on-chain data. * RWA Strategy: ynRWAx is a curated Real-World Asset (RWA) vault users access to stable yields generated on RWAs. * Buffer Target: 10–20% in USDC *** ### Security & Risk Management * Hypernative Monitoring: 24/7 AI-based threat detection. * Guard Engine: Whitelist-based control over strategy interactions. * Audited Contracts: All deployed code is reviewed and upgradeable. * Manual Buffer Refill: Rebalanced as needed until automation is implemented. *** ### Value Accrual Example ynUSDx auto-compounds rewards, enhancing token value over time. As yields are generated and compounded, the value of ynUSDx grows. Value Accrual Example (assuming 12.5% APY for ynUSDx) | Restaking Time | Amount ynUSDx | Value in USDC | | -------------- | ------------- | ------------- | | Day 0 | 1 ynUSDx | 1.000 USDC | | Day 180 | 1 ynUSDx | 1.0625 USDC | | Day 365 | 1 ynUSDx | 1.1250 USDC | ynUSDx does not rebase. Instead, the token's share price increases as the underlying stablecoins generate and compound yield.. No rebasing—value grows via share price. *** ynUSDx offers a stable, modular, and high-yield USD exposure for DeFi users, abstracting strategy complexity while ensuring transparency, liquidity, and security. # ynRWA MAX - ynRWAx USD-based RWA strategies that settle on Ethereum L1 ynRWAx is a curated Real-World Asset (RWA) product that provides users with streamlined access to stable, real-world yields. Backed by real, off-chain collateral uncorrelated with crypto markets, ynRWAx is designed for users looking to park their USDC and earn stable, RWA-backed returns on their crypto assets. Funds are deployed across diversified real-world assets and managed via fully audited, on-chain infrastructure.

ynRWAx advanced page

Contract Address:[ ](https://etherscan.io/address/0x3DB228FE836D99Ccb25Ec4dfdC80ED6d2CDdCB4b)[0x01Ba69727E2860b37bc1a2bd56999c1aFb4C15D8](https://etherscan.io/address/0x01ba69727e2860b37bc1a2bd56999c1afb4c15d8) We've comprehensively assessed YieldNest MAX LRTs, focusing on how products like ynRWAx generate yield, are designed, and maintain security. Share feedback on the editor 🔗[ YieldNest General Protocol Assessment](https://www.llamarisk.com/research/yieldnest-general-assessment) *** ### Base Configuration - ynRWAx | Parameter | Details | | ------------------------ | ----------- | | Price Asset | USDC | | Primary Underlying Asset | USDC | | Accounting Layer | Ethereum L1 | | Underlying Assets | USDC | Below is a high-level overview of its key features, architecture, and how it manages security & risk. *** ### Key Features * Stable, Diversified Yield: Earn yield from real-world private credit strategies uncorrelated with crypto markets. * Auto-Compounding Engine: Weekly streamed interest is auto-redeployed and reflected in the token's rising redemption value. * Security-First Infrastructure: Includes audited smart contracts, DECO oracle integration (WIP), and live monitoring (Defimon). * Guard Validation Engine: Enforces governance-approved rules and secure execution for all transactions within the MAX LRT architecture. * ERC-4626 Compliant: Fully compatible with other DeFi protocols and yield strategies. *** ### Vault Mechanics * **Deposit & Mint:** Deposit USDC to mint ynRWAx 1:1; value grows over time. * Yield Accrual: Issuers prepay interest weekly. Interest is streamed to users. * Smart Contracts: Fully audited, on-chain logic governed by YieldNest DAO. * Default Protection: Legal enforcement + collateral liquidation procedures pre-engaged. *** ### Value Accrual Example ynRWAx auto-compounds real-world yield, gradually increasing the token's redemption value over time. The token does not rebase; instead, its share price increases as yield accrues from private credit strategies. **Value Accrual Example (assuming 15% APY for ynRWAx)** | Restaking Time | Amount ynRWAx | Value in USDC | | -------------- | ------------- | ------------- | | Day 0 | 1 ynRWAx | 1.000 USDC | | Day 180 | 1 ynRWAx | 1.073 USDC | | Day 365 | 1 ynRWAx | 1.150 USDC | ynRWAx does not rebase. Instead, the token's value grows through a rising share price as yield is streamed and compounded from off-chain repayments. *** #### Governance, Curation & Security * Curated Issuers: Validated independently by Bird & Bird, ensuring asset legitimacy and compliance. * Oracle Integration: DECO-powered TLS proof framework. (WIP) * We plan to implement [DECO](https://www.deco.works/), a privacy-preserving oracle protocol. Using advanced cryptographic techniques, DECO enables users to prove facts about their web (TLS) sessions to oracles without revealing sensitive data. All RWA assets will be accompanied by DECO-secured proofs, providing verifiable Web2 records on-chain. * Audited Codebase: Reviewed by leading firms. * Live Monitoring: Hypernative and Defimon integrations. * Upgrade Safety: Timelock + role-based control + proxy architecture. * Governance: Parameter management and strategic oversight are transparently governed by the YieldNest DAO and eventually a dedicated SubDAO. All smart contracts powering the ynRWAx vault are reviewed and audited by leading blockchain security firms. Third-party partners, such as Defimon provide additional runtime monitoring and threat detection. The vault utilizes role-based access control, time-lock enforcement, and an upgradable proxy architecture to ensure safety, transparency, and flexibility. Users are encouraged to review the open-source code and published audit reports. *** ### ynRWAx Vault Design (Happy flow) - deep dive for clarity The ynRWAx Vault provides exposure to curated real-world credit strategies while delivering daily, auto-compounded yield on USDC. This section provides a detailed breakdown of the "Happy Flow," an ideal operating scenario based on a 12-month cycle. This cycle is not only a simplified illustration but also the structure used in the initial release of ynRWAx.

High-level overview of ynRWAx

#### Deposit & Minting Users deposit USDC and mint ynRWAx at a 1:1 ratio. The token value increases over time as yield is accrued and auto-compounded. #### Redemptions & Withdrawals ynRWAx is a pilot collaboration of three parties: YieldNest as the technology provider, providing the on-chain infrastructure; the issuer of the underlying credit instrument; and Kimber Capital, a licensed Australian fund manager that manages and monitors the underlying mortgage-backed Australian real-estate credit. The pilot reaches its scheduled maturity in October 2026, and holders redeem for USDC through the 2026 redemption cycle; all positions return to USDC; nothing rolls over into a new term. #### 2026 redemption timeline
DateWhat happensHolder action
1 Oct 2026Redemption window opens.Submit ynRWAx for redemption on the ynRWAx asset page (app.yieldnest.finance/token/ynRWAx).
20 Oct 2026, 12:00 UTCThe asset matures. Final submission cutoff; the redemption rate is set.Deadline to submit. After the cutoff, the final rate is visible; claims open 20 Nov.
20 Nov 2026USDC claims open.Claim your USDC on the asset page.
* Yield accrues until the 20 Oct cutoff. * Submitting has no fee. It locks your ynRWAx for redemption; from 20 Nov, claim your USDC on the asset page. * Nothing is required today (integrated holders: see below). If you miss the 20 Oct cutoff, you can still redeem after 20 Nov; details will be shared before claims open. If you hold through Pendle, Spectra, Curve, or Euler: integrated positions are not automatically included in the batch. Unwind into direct ynRWAx first, then submit. Pendle and Spectra ynRWAx needs to be claimed, and an Euler borrow must be repaid before withdrawing; start early enough to unwind and submit before the 20 Oct cutoff. #### Roles and questions YieldNest operates the on-chain vault, redemption, and claim contracts; for app and claim questions, ask in the YieldNest Discord. The underlying credit and its settlement, which funds the USDC claims, sit with the issuer and Kimber Capital; updates on settlement and proceeds are announced through YieldNest channels. #### Core Mechanics * Duration: 365 days per credit cycle (initially used as the base example) * Yield Distribution: Yield is prepaid 28 days in advance by the issuer and streamed onchain *** ### Design Benefits * Predictable Yield: bi-Weekly interest streaming = consistent, visible growth * Security & Enforcement: Issuers are legally bound; collateral can be liquidated on default *** ### ynRWAx - Frequently Asked Questions (FAQ) Below is a selection of frequently asked questions (FAQs). Please keep the great questions coming so we can continue expanding this list. If you have additional questions, join our Discord and ask us anything. Drop your question in the [**DeFi strategy**](https://discord.gg/EQ9nhPTw) channel and get a response from the community right away.
What is ynRWAx? ynRWAx is a YieldNest product that provides DeFi exposure and entry to secured real-world private credit, backed by real property and managed by third-party fund managers, while settling on Ethereum L1. It is designed to offer a predictable yield with DeFi-native composability, transparency, and on-chain settlement.
What is the duration of ynRWAx? ynRWAx has a **fixed maturity**.\ ynRWAx matures on 20 October 2026, 12:00 UTC the final redemption submission cutoff (see the 2026 redemption timeline). Users can claim USDC from 20 Nov 2026.
Can I withdraw before maturity? Early exits are subject to market conditions. The primary exit is the 2026 redemption cycle, in which everyone in the batch redeems at the same rate, set at the 20 Oct cutoff. Early withdrawal options include: * Selling ynRWAx on secondary markets (DEXs) * Exiting via supported liquidity pools, if available
Is ynRWAx redeemable directly for USDC? Through the 2026 redemption cycle: submit 1–20 Oct, claim USDC from 20 Nov onward. Before then, converting to USDC relies on secondary-market liquidity.
Is ynRWAx suitable for short-term liquidity needs? ynRWAx is not optimized for short-term trading. The primary exit is the 2026 redemption cycle, in which everyone in the batch redeems at the same rate, set at the 20 Oct cutoff.
What risks should I be aware of? Key risks include: * Early exit price risk (discounts before maturity) * Liquidity risk in secondary markets * Counterparty and issuer risk * Smart contract risk (audited, but never zero) ynRWAx is designed to be transparent and risk-aware, but it is not risk-free.
How is the AUD/USD FX risk managed? The AUD/USD FX risk is accepted by the underlying borrowers/issuer who are required to absorb any FX movements, and for all principal and interest to be made in USD to YieldNest. We also take personal guarantees from the borrower entities to ensure compliance. The underlying borrower/issuer absorbs any FX movements.
Which company acts as Trustee for Yieldnest in this strategy, and do they have any relation to YieldNest? Kimber Capital and its staff were selected to be a trustee. Bird and Bird were selected to do the security review of the firm handling the initial legal work (Holding Redlich)\ (Undergoing review; the issuer and borrower are also in talks with Ernst & Young). All firms are major firms with demonstrated capabilities before we would pass them. The Trustee has no prior or business relation to YieldNest and was selected solely to be a licensed and insured trustee for this single strategy, at arm’s length. They also do not run any other strategies for YieldNest and handle YieldNest-related investments in a single-purpose trust, separate from any other activities. Kimber has maintained a strong, consistent financial services business for the past 13 years, advising sophisticated and accredited investors across the major indices. Also, their license is mature enough to allow dealing with both accredited and non-accredited investors, and particularly also covers derivatives and managed discretionary investment schemes, which is a key consideration for YN. In Australia, all financial services licenses must purchase extensive Public Liability and Professional Indemnity insurance. **What services do you mandate of the Trustee?** Crypto, DeFi, and RWA lending is still a nascent space, and our strategy is currently less than $10 million against a diversified pool. As you would be aware, the USA has only really begun to embrace this space at the government level in the last 12 months. Smaller countries (even Tier-1 English-speaking jurisdictions) are even further behind with their legislation, and many larger trustees won’t act for groups and their entities that are in cryptocurrency and offshore. Many large trustees are still hesitant to touch new crypto projects – let alone DeFi and RWA. For our strategy, we need to primarily focus on the following: Licensing and Insurance – we must have in that jurisdiction a suitably licensed trustee to bring a product to the market, which we as a platform can have comfort to support our infrastructure. Duration of business – Kimber has been in business for over a decade and understands this investment category. The trustee is required to be licensed and insured in its jurisdiction. Security and enforceability – As Kimber is acting solely as a trustee for a custom-established, bankruptcy-remote Trust setup solely for YieldNest, it is actually less relevant to us their size but rather performance and skillset of the Trustee, as we can replace the Trustee, Kimber at any time and YieldNest can ultimately take control of the Trust if we are not happy for any reason to enforce on its mortgages and security.
Where can I ask more questions? Join the YieldNest Discord and post your questions in the [**DeFi strategy**](https://discord.gg/EQ9nhPTw) channel.\ The team and community actively respond and update documentation based on feedback.
# STAK USDC based RWA + DeFi yield strategy that settles on Ethereum L1 STAK combines real-world yield from [ynRWAx](https://docs.yieldnest.finance/protocol-design/max-vaults/ynrwa-max-ynrwax) with DeFi efficiency via [ynUSDx](http://docs.yieldnest.finance/protocol-design/max-vaults/ynusd-max-ynusdx) in a single, liquid token. It routes into the[ ynRWAx/ynUSDx Curve LP](https://www.curve.finance/dex/ethereum/pools/factory-stable-ng-650/deposit) and is staked through [StakeDAO](https://www.stakedao.org/strategy?protocol=curve\&vault=1-0xCa21e91eB3C601978C8293F0C3a544bA28cCC8ED), with rewards auto-compounded back into the LP so users can “hold one token” while earning both off-chain secured credit yield and on-chain DeFi yield on Ethereum.

STAK advanced page & STAK APP

Contract Address: [0xD1573de52fFF44dd92D275e20Fdab0296CCFF141](https://etherscan.io/address/0xD1573de52fFF44dd92D275e20Fdab0296CCFF141) **Yield sources** \~10% base yield from a mix of: * ynRWAx (secured real-world private credit) * ynUSDx (low-risk DeFi market exposure) \+ variable upside from: * Curve LP fees * Incentive rewards **Deposits & withdrawals** * Deposit or withdraw directly with the LP token, or via any token through [Enso](https://www.enso.build/). * Enso computes an optimal route into the asset of your choice. Slippage varies by route and market liquidity always reviews the quoted path and expected slippage before confirming. STAK is composable and usable across DeFi in AMMs or structured yield markets to hedge, lock outcomes, or express a view on future yield. It’s best for users who can hold through the ynRWAx maturity cycle for optimal outcomes. *** ### Product summary * Goal: combine real-world, secured credit yield (ynRWAx) with DeFi efficiency (ynUSDx) and auto-compounded LP incentives into one position. * What you hold: STAK shares representing a pro-rata claim on the vault’s staked ynRWAx/ynUSDx Curve LP position. * Accounting / settlement: Ethereum L1. **Links** * STAK website:[ https://stak.fyi/](https://stak.fyi/) * YieldNest app:[ https://app.yieldnest.finance/token/STAK](https://app.yieldnest.finance/token/STAK) *** ### Base configuration | **Parameter** | **Specification** | | ------------------------ | ---------------------------- | | Price asset | ynRWAx/ynUSDx Curve LP token | | Primary underlying asset | ynRWAx/ynUSDx Curve LP token | | Accounting layer | Ethereum L1 | | Underlying assets | ynRWAx/ynUSDx Curve LP token | *** ### How STAK works #### Deposit flow Users can deposit: * Directly: ynRWAx/ynUSDx Curve LP tokens, or * Routed deposits: any supported asset routed through an aggregator path via [Enso](https://www.enso.build/) (e.g., swap → add liquidity) into the ynRWAx/ynUSDx Curve LP position. High-level steps: 1. User deposits an asset 2. Asset is converted into ynRWAx/ynUSDx Curve LP tokens 3. LP tokens are staked via StakeDAO 4. User receives STAK shares Core behavior: STAK stakes the ynRWAx/ynUSDx Curve LP via StakeDAO to earn swap fees and incentives, with rewards auto-compounded into additional LP over time. *** ### Yield generation STAK’s yield stacks across three layers: #### 1) Base yield * ynRWAx: RWA-backed yield that accrues value vs USDC. * ynUSDx: stablecoin yield via diversified, risk-adjusted DeFi strategies. #### 2) Curve LP rewards * DEX fees (swap fees) and any liquidity incentives earned by the underlying Curve LP position. #### 3) StakeDAO incentives + other rewards * Boosted/aggregated incentives from staking the LP via StakeDAO, harvested and auto-compounded back into the LP position over time. *** ### Auto-compounding and value accrual * Rewards are periodically harvested and converted back into additional LP exposure. * STAK is intended to accrue via share-price growth (i.e., more underlying LP per STAK over time), rather than periodic payouts. *** ### Withdrawals You can withdraw at any time, using one of two approaches: #### 1) Withdraw LP tokens and exit manually Withdraw the ynRWAx/ynUSDx Curve LP tokens, then exit the LP via: * ynUSDx only exit into a liquid token redeemable for USDC * ynRWAx only for users seeking concentrated RWA exposure * Balanced withdrawal proportional share of both tokens, depending on Curve pool composition #### 2) Route your withdrawal via Enso You can route your withdrawal through Enso, which computes an optimal path into an asset of your choice. Slippage may occur depending on the selected route, so always review the quoted path and expected slippage before confirming. Note on duration: STAK is optimally suited for users who can remain invested through the full ynRWAx maturity cycle to achieve optimal outcomes. Early withdrawals are always possible, but may incur slippage depending on market conditions and pool liquidity. *** ### Security, trust boundaries, and key risks #### Trust boundaries * On-chain vault logic: mints/burns STAK and manages the staking position. * Curve: LP pricing and exit liquidity depend on pool depth and pool composition. * StakeDAO: staking wrapper and incentive routing for the LP position. * ynRWAx off-chain manager: ynRWAx is built with Kimber Capital (AFS Licence No. 425278). * ynUSDx: combines multiple DeFi strategies designed for strong risk-adjusted stablecoin yield. #### Primary risks * Liquidity / slippage risk: LP exits (especially single-sided) can be sensitive to pool depth and imbalances. * Duration / discount risk (ynRWAx): pre-maturity secondary pricing can trade at a discount/premium vs accrued value; this can flow through to the LP and STAK. * Smart contract risk: YieldNest contracts + integrations (Curve, StakeDAO, routing paths). * RWA/credit & legal-structure risk: ynRWAx relies on off-chain credit facilities and legal enforcement; disclosures apply. * Incentive variability: Curve/StakeDAO incentives and DEX fees are variable; any “target APY” is not guaranteed. # Max Vaults APY Calculation #### **APY Calculation** The APY for Max Vaults and underlying strategies represents its annualized performance based on a trailing 7-day and 31-day period of on-chain data. This provides a current, data driven measure of the products recent performance. {% hint style="info" %} The example below is based on the trailing 7-day APY calculation. The same calculation is applied to the trailing 31-day APY by changing the time parameter to 31 days. We only display the trailing 31-day APY for Max Vaults. Max Vault strategies display trailing 7-day APY data. {% endhint %} The calculation relies on the **rate** that each strategy’s *provider* contract publishes (e.g., `getRate(asset)`). 1. **On-chain exchange rates** Our system reads a strategy's exchange rate directly from its smart contract. The rate is captured at two points in time: * The rate from the latest block (`R_now`). * The rate from a block approximately 7 days prior (`R_7d-ago`). 2. **Calculate the 7-Day Period Return** Two rates are used to calculate the strategy's raw percentage gain over the \~7 day period. $$ R=\frac{R\_{\text{now}}}{R\_{\text{7d-ago}}}−1 $$ 3. **Annualized return** The below calculation is used to project this 7-day return over a 365-day horizon to calculate the APY for the strategy. This shows what the return would be over a full year if the performance of the last 7 days were to continue. A standard periodic compounding formula for is used for this projection: $$ \text{APY}\_{7\text{d}} ;=; \Bigl(1+R\Bigr)^{;31,536,000/\Delta t}-1 $$ {% hint style="info" %} Where `31,536,000` is the number of seconds in a year. And `Δt` is the precise number of seconds that elapsed between the two blocks measured. {% endhint %} 4. This process updates hourly, so the APY always reflects the most recent 7-day and 31-day performance data. # LRT strategies LRT Strategies are the underlying yield-generating mechanisms powering MAX LRTs. While MAX LRTs serve as the top-level vaults, dynamically rebalancing across multiple strategies, LRT Strategies are the building blocks that execute specific yield optimization techniques. Not all LRT Strategies are directly accessible to users. Some function entirely within their MAX LRTs, while others offer a public interface for advanced users who want isolated exposure to a specific strategy. This modular architecture allows YieldNest to optimize risk management while implementing a tailored, strategy-specific fee structure MAX LRTs do not charge fees; fees are only applied at the strategy level.

High level architecture MAX LRTs

By structuring MAX LRTs this way, YieldNest achieves: * **Efficient risk management –** Strategies operate independently while still being managed under a unified MAX LRT framework. * **Granular fee optimization –** Fees are applied only at the strategy level, ensuring fair and transparent cost structures. * **Flexibility for advanced users –** Those seeking isolated exposure to a specific LRT Strategy can interact with individual strategies instead of the broader MAX LRT. Each LRT Strategy serves a unique role in optimizing returns while maintaining Layer 1 settlement assurances. This architecture allows YieldNest to adapt continuously, enhance capital efficiency, and optimize restaking allocations, ensuring long-term sustainability and performance in the evolving DeFi landscape. # ynETH ynETH is an nLRT that exposes users to a dynamically curated Basket comprising AVSs across multiple industry verticals. The YieldNest DAO carefully selects and fully vets all of the operators and AVS within ynETH’s Basket to deliver an nLRT with the highest possible risk-adjusted yield. Restakers deposit ETH into YieldNest’s restaking pool and receive ynETH back as a tradable and liquid “receipt” token representing the underlying yield-generating restaked ETH. The generated restaking rewards are distributed back to ynETH holders, veYND tokens, and operators. **ynETH’s APY = Ethereum staking APY + AVS Yield + Airdrops**
ynETH is not a rebasing token, meaning that the amount of ynETH held will not change over time. Instead, the underlying value of the token will increase as the rewards auto-compound and accrue to the token on-chain.

ynETH Architecture

### ynETH Architecture Value Accrual: ynETH auto-compounds rewards, enhancing token value over time. As rewards are distributed and compounded, the value of ynETH grows. Value Accrual Example (assuming 12.5% APY for ynETH) | **Restaking time** | **Amount ynETH** | **Value in ETH** | | ------------------ | ---------------- | ---------------- | | Day 0 | 1 ynETH | 1 ETH | | Day 180 | 1 ynETH | 1.0625 ETH | | Day 365 | 1 ynETH | 1.125 ETH | ### ynETH Use Cases * **Controlled Exposure:** Holding ynETH allows users to earn boosted yields by restaking ETH to a pre-selected and carefully vetted Basked of AVS categories—all by simply holding a single liquid token. * **Providing Liquidity:** Users can use ynETH to provide liquidity to external DeFi protocols like Curve that support ynETH pools to earn additional revenues from swap fees and liquidity mining. * **Lending/Borrowing:** Users lend ynETH on decentralized money markets like Aave or Euler or use it as collateral to borrow other assets, including ETH or various stablecoins. Furthermore, users could leverage their ynETH by borrowing ETH against it and depositing that ETH back to YieldNest to acquire even more ynETH. * **Realizing Restaking Profits:** Holders can always withdraw their ynETH for the underlying ETH plus the accumulated restaking revenue from AVSs on YieldNest or swap ynETH for ETH on decentralized exchanges for like-kind assets like Curve. # Withdrawals - ynETH We prioritize making our withdrawal process as secure, efficient and straight-forward as possible. ynETH can be withdrawn/unstaked directly via our YieldNest app. With this feature, we allow our users to claim any underlying assets in exchange for the requested ynETH. As many of you might know, withdrawals for native LRTs (nLRTs) like ynETH have been in the works for some time, and it’s likely unclear to most users why this is the case. The reason is that an nLRT like ynETH restakes its validators to EigenPods, which then delegate stake to operators, who further delegate it to AVSs. This process is complex because each validator must submit proofs for deposits, rewards distribution, and withdrawals. While this complexity adds some delays, it also ensures that our ETH validators are genuinely restaked with 100% provable ownership. This strengthens the infrastructure, making it safer and more reliable. This is also why we’ve separated ERC20 token (LSD) restaking from native restaking, and we basically have an nLRT and LRT factory for EigenLayer right now. The delay is primarily due to the difficulty in proof generation, submission, and optimization, which is challenging. EigenLayer has significantly improved this process by introducing PEPE (M3), which EigenLayer has indicated will go live on mainnet on September 4th and is already live on testnet. We have fully completed the withdrawal flow and are now waiting for the PEPE (M3) deployment, after which we will start rolling out withdrawals for ynETH. ### Secure & Audited #### To maintain top security, YieldNest’s withdrawal flow is fully audited by ChainSecurity to ensure the withdrawals are safely being executed.

ynETH withdrawal flow

### Withdrawal options and flow In order to redeem ynETH for its share of the underlying it is necessary to bring a sufficient quantity of ETH from the beacon chain into the EigenPod and then back into the ynETH protocol where it can be released to the redeeming account. Due to the inherent delays built into the aforementioned steps YieldNest implements a queue. The UI provided by app.yieldnest.finance will provide a simple user experience. The rest of this section provides technical detail to help users understand how the process works behind the frontend interface. #### Withdrawal queue requests and claims To initiate the process the user calls requestWithdrawal with the amount of ynETH to redeem. This will transfer amount ynETH from the requester to ynETH’s WithdrawalQueueManger contract. In exchange for the ynETH the WithdrawalQueueManger mints a claim NFT to the requestor’s address. The NFT contains the amount being withdrawn, the amount of the withdrawal fee, the redemption rate, the request creation timestamp, and a flag indicating if the withdrawal has been processed yet. As usual, the NFT has a unique ID. To complete the process the user calls claimWithdrawal with the ID of the NFT obtained from requestWithdrawal earlier. An address to receive the ETH is also supplied. If the ETH to cover the withdrawal is available, the claim NFT is marked used and burned, and the amount of ETH specified in the NFT to the receive address. #### Withdrawal queue cancelation After calling requestWithdrawal the user must wait until funds are available before calling claimWithdrawal. The wait time depends on external factors, which will be addressed in the next section. Once initiated, withdrawal requests cannot be canceled. There is no time limit for claiming a withdrawal, which has implications we will discuss in the section on faster redemption methods. #### Determining claim readiness As funds become ready for claiming an event called RequestsFinalized is emitted from the WithdrawalQueueManager contract. When lastFinalizedIndex is greater than or equal to the claim NFT’s ID then it’s ready to go. #### Withdrawal queue processing time The amount of time that will be necessary to wait between requesting a withdrawal and being able to receive the ETH depends primarily on the length of the beacon chain exit queue and the slashing delay imposed by EigenLayer.
Generally, the time it takes for ETH to be withdrawn from the beacon chain is: 1. The time until exited from the active set. 2. The time until entering the withdrawable state. 3. The time until the withdrawal sweep. The timings are as follows: 1. This website can be consulted for timing information: [www.validatorqueue.com](http://www.validatorqueue.com). The relevant section is the Queue Wait Time (days) for the time it takes to exit the active set. During 2024 this time has been negligible on average, rarely exceeding 12 hours except for a brief period in the beginning of January when a sudden spike in exits caused a delay of up to 5 days. 2. This takes approximately 27 hours. 3. There is a limit of 16 validators per block, and currently there are approximately 1 million active validators, therefore it takes about 8.5 days for a full cycle. The exact time it takes for this to execute this sweep depends on the position of the validator index being withdrawn relative to the index of validator that was swept. EigenLayer’s minWithdrawalDelayBlocks which is currently set to 50400, or 7 days. This parameter may be changed by EigenLayer in the future. The withdrawal from EigenLayer and from the Beacon chain are started at the same time, running in parallel, thus the total delay before a withdrawal request becomes claimable is whichever delay is longer. Withdrawals may be ready sooner than these delay times if they can be satisfied by funds already in flight that aren't required to satisfy previously queued requests. For example, if user A had a request for 50 ETH, and then user B requested 10, then user B’s withdrawal will be claimable at the same moment that user A can claim. This is due to the fact that validators each contain 32 ETH, and therefore 2 validators for 64 ETH had to be exited in order to satisfy A because A needs less than or equal to 14 ETH. #### Faster redemption methods There are two ways to avoid having to wait in the withdrawal queue: 1. Swap ynETH 2. Swap a claim NFT For a faster process for withdrawing funds, users can swap their ynETH on secondary sites such as liquidity pool providers. Keep in mind that using this method can become quite costly due to swap rates and slippage costs. Currently, there is a Curve pool here: The second option is for a user who wants liquidity now to sell their claim NFT to another party who is willing to wait for it to be redeemable. More information on arranging such trades will be published soon.
# \[Legacy] YieldNest’s Technical Specifications These were the original designs for LRTs, but this architecture is currently on hold since the restaking platforms it depends on are not yet mature enough to support such structured products. This shift inspired the creation of **MAX LRTs**, which fulfill the original vision. For an in-depth look at what **"Restaking Unlocked: The Next Evolution in DeFi Yield"** truly means and how YieldNest envisions it, check out our collaborative research with **Llama Risk**: 🔗[ Beyond Shared Security: The Evolving Role of Restaking in DeFi](https://www.llamarisk.com/research/restaking-in-defi) ### See here the out-dated technical specs: YieldNest’s system architecture uses a clean design pattern. It is meant to be modular, clearly separate concerns, and use abstractions to promote a flexible, maintainable, and scalable codebase. The core idea behind clean architecture is to create a fundamental base for YieldNest independent of external dependencies. It leverages modular and interchangeable components that future-proof YieldNest, allowing it to leverage future restaking protocols beyond EigenLayer and support multi-layer LRT staking. ### System Components The smart contract protocol consists of proxy-upgradeable smart contracts, with the ynETH contract acting as the main entry point for users to deposit ETH in exchange for ynETH, which represents users’ total shares of the restaked ETH managed by the protocol.

System Components

The protocol uses Ethereum staking-as-a-service providers to stake ETH by delegating to validators, making their stake available for restaking on EigenLayer by configuring their withdrawal credentials to point to one of the EigenPod instances owned by the YieldNest. The protocol generates revenues by taking a protocol fee from the total Ethereum staking and AVS restaking rewards. These rewards are converted to ETH before being redistributed to ynDAO token holders. The remaining rewards are accumulated and auto-restaked. YieldNest is currently managed by a set of multi-signature wallets that determine the protocol’s restaking strategies, handle validator registration, harvest rewards, manage upgradability, manage roles, and perform other administrative tasks. YieldNest plans to develop two modules, YieldNestStrategyManager and ynDAO governance, to decentralize the current setup and transfer control over the protocol to ynDAO token holders in the near future.\ \ YieldNest starts off only with deposit functionality and will release a WithdrawalManager module shortly after the initial version is released, to allow unstaking requests from users through which ynETH is redeemed for ETH. ### **ynETH**

ynETH

* ynETH starts at 1:1 to ETH and then appreciates in value against it as it accrues Ethereum staking rewards and restaking rewards from various AVSs. * This means that, after a while, one ynETH will be redeemable for more than one ETH. * The deposited ETH are idle until retrieved by the StakingNodesManager to be deposited into the Ethereum 2 Staking contract and restaked on EigenLayer. ### **StakingNodesManager and StakingNode**

StakingNodesManager and StakingNode

* The StakingNodesManager keeps track of all StakingNode instances in the system. * The StakingNodesManager can deploy the depositors’ ETH that backs ynETH into the Ethereum 2 Staking contract. * The StakingNodesManager.registerValidators call can be executed by the VALIDATOR\_MANAGER\_ROLE multi-sig. The protocol initially operates with a federated model, where it has the power to register new validators from selected partner providers (currently active: , with more to come). * YieldNest will launch with a federated model, meaning the YieldNest DAO will securely assign initial DAO-vetted node operators. * YieldNest plans to enhance security, decentralization, and improve the user experience by leveraging EIP-5630 or sharded keys with Distributed Validator Technology (DVT). * There’s a 1:N relationship between StakingNodesManager and StakingNode instances. The StakingNodesManager can deploy an arbitrary number of StakingNode contact instances, up to a maxStakingNodes configured system parameter. * The StakingNode instances follow a BeaconProxy pattern for upgradeability. * One StakingNode is created for each EigenPod under the management of the protocol. * The protocol has a fixed number of StakingNode instances. This allows the protocol to delegate chunks of the total assets under management to multiple node operators, where one chunk size is defined by the number of validators with withdrawal credentials equal to the EigenPod address of the respective StakingNode. ### **RewardsDistributor**

RewardsDistribution

The **RewardsDistributor** handles all YieldNest rewards, processes protocol fees, and distributes the net rewards towards the total AUM. YieldNest has three primary revenue sources: 1. Ethereum staking consensus layer rewards 2. Ethereum staking execution layer rewards 3. AVS rewards 4. veYND bribes * Until Eigenlayer starts supporting the distribution of AVS rewards, only the Ethereum consensus and execution layer staking rewards will be available. * When AVS rewards become available, the RewardsDistributor will be extended and configured to convert and distribute rewards in any token. The RewardsDistributor will have a built-in swap facility to convert and distribute rewards (a future AVSRewardsConverter module). * Any airdrops or other one-time rewards that may become available due to restaking will also be counted towards the protocol's total rewards stream and distributed like the other three reward types. * After applying the protocol fee, the RewardsDistributor sends rewards back to ynETH to accrue towards the total protocol assets. * The protocol fee is applied to the protocol's total revenue after it has been converted to ETH and distributed to the veYND token holders. * Because veYND token holders receive the protocol fee as a reward, the RewardsDistributor sends rewards to the YieldNest DAO Treasury will convert the ETH to more veYND, which will serve as a long-term holder of veYND tokens. * Until the YND & veYND token is released, the protocol collects the entire protocol fee in a DAO multi-sig whose address is stored at RewardsDistributor.feeReceiver. ### **YieldNest StrategyManager and ynDAO Governance**

YieldNest StrategyManager and ynDAO Governance

* The YieldNest StrategyManager is interfacing with the EigenLayer DelegationManager and StrategyManager to delegate stakes to pre-selected operators and deposit them in curated strategy vaults. * The StrategyManager controls StakingNode instances’ ability to delegate and stake shares to a particular strategy. * The ynDAO Governance can whitelist AVS operators. * The ynDAO Governance can whitelist AVSs. * The ynDAO Governance can register strategies. * The ynDAO Governance can configure custom rewards. * The ynDAO Governance can configure veYND emission. * The StrategyManager monitors AVSs. * The StrategyManager monitors operators. ### Upcoming Components #### Unified liquidity model - Withdrawal flow The ability to withdraw will not be available immediately upon launch. This functionality will be introduced in subsequent epochs to ensure stability and security within the YieldNest protocol. We are currently developing a unified liquidity model for all our LRT products that will be implemented over time; a more detailed explanation follows below.

Unified liquidity model

As YieldNest develops a broader range of LRT products (e.g., thematic AVS baskets, risk-tranched AVS baskets, and isolated AVS tokens), it becomes increasingly important to ensure deep liquidity for each of the ever-growing number of YieldNest LRTs. Because we envision a rapidly expanding AVS and LRT landscape, we prioritized designing a liquidity model that minimizes liquidity fragmentation by providing unified liquidity for all YieldNest LRTs. This model works by introducing a liquid token (qETH) representing ETH that is escrowed in the EigenLayer withdrawal queue. Because withdrawal-escrowed ETH no longer has exposure to any particular AVS's risks (slashing) or rewards (yield), all YieldNest LRTs become fungible once withdrawal escrow is initiated. Therefore, any YieldNest LRT can be directly converted to the same token (qETH) representing ETH in the withdrawal-escrowed state. This allows for a single qETH/ETH liquidity hub to support expedited exit from any YieldNest LRT. #### Curve ynTryLSD - R\&D - WIP YieldNest plans to develop and deploy a TryLSD Pool on Curve with blue chip liquid staking derivatives (LSDs), including wstETH, rETH, and sfrxETH. YieldNest will onboard many AVSs and new collateral types that make sense for the protocol and broader ecosystem. It sees the use of restaked LP pools like TryLSD as a natural and beneficial development. The TryLSD Curve pool can be used as restaked collateral and economic security, making staking more capital efficient.\ \ In addition to facilitating restaking with high-quality AVSs, YieldNest also plans to \[or: may also] launch its own AVSs which cater to core needs throughout the DeFi ecosystem. For example, many DeFi protocols have tunable parameters that are adjusted over time to accommodate changing risks and market conditions. YieldFi may develop AVSs that are specialized for running optimization software (e.g., curvesim) and/or AI models to update these parameters in an automated manner. ### Ethereum Validators/EigenLayer Operators **Phase 1:** * To ensure the security, scalability, reliability, and high yield of its Native Liquid Restaking Protocol, YieldNest will initially work exclusively with a permissioned group of professional operators. These carefully selected EigenLayer operators will be responsible for running Ethereum validators that natively restake on EigenLayer and run AVS modules to maximize restaking rewards for ynETH token holders. * The permissioned setup will allow YieldNest to meticulously control and optimize the protocol's performance, ensuring a smooth user experience. Ethereum validators and Eigenlayer operators will be whitelisted following a rigorous vetting process conducted by the YieldNest DAO. Once approved, operators will receive token delegations via smart contracts, enabling them to participate in the restaking process. * Given the potential risks associated with AVSs, the YieldNest DAO will conduct thorough research and vote on each AVS proposed for inclusion. Only approved AVSs will be whitelisted, allowing node operators to select from a pool of vetted and secure options. **Phase 2:** * YieldNest is committed to Ethereum's long-term decentralization and censorship resistance goals and ethos. To that point, when it matures, the protocol plans to transition from a permissioned to a permissionless validator/operator system, leveraging Distributed Validator Technology (DVT). * With DVT, YieldNest will drastically reduce the Ethereum validator staking requirement from 32 ETH to 1-4 ETH. This will lower the barrier to entry for Ethereum validators, enabling individuals who don't have 32 ETH to participate in the network actively. * DVT also mitigates slashing risks and enhances uptime, contributing to higher yields for ynETH token holders. This trifecta of benefits—lower barriers to entry, reduced risks, and improved yields—paves the way for a more inclusive, resilient, and rewarding YieldNest ecosystem. ### Rewards and Distribution YieldNest will accrue rewards from its restaking services and distribute them according to the following breakdown: * 90% to ynETH holders * 10% to the YieldNest DAO and YND token holders ### **Rewards Pool** The exact dynamics of the rewards pool are still being considered. A rewards distribution contract will calculate rewards and penalties and distribute them to restakers, operators, YieldNest DAO, and YND token holders. # RA & Operators Selection These were the original designs for LRTs, but this architecture is currently on hold since the restaking platforms it depends on are not yet mature enough to support such structured products. This shift inspired the creation of **MAX LRTs**, which fulfill the original vision. For an in-depth look at what **"Restaking Unlocked: The Next Evolution in DeFi Yield"** truly means and how YieldNest envisions it, check out our collaborative research with **Llama Risk**: 🔗[ Beyond Shared Security: The Evolving Role of Restaking in DeFi](https://www.llamarisk.com/research/restaking-in-defi) ### Clarification: Terms like AVSs (Active Validated Services), Networks, and DSSs (Distributed Secure Services) are collectively referred to as restake applications (RAs). RAs are applications that run on restaking protocols, offering these applications modular security via the shared security of an underlying blockchain and utilizing its settlement guarantees and assets. These restaking platforms or protocols use restaked assets to underwrite risks, ensure task correctness, or provide economic security for the RAs. YieldNest is a top liquid restaking protocol that manages and optimizes yield for restaked assets across the best restaking protocols. Our first step is to select the best Active Validators Services (AVSs) and operators for EigenLayer. After that, we will expand to other protocols and create a comprehensive risk framework for restaked assets. We have found that YieldNest is one of the few liquid restaking protocols that thoroughly analyzes risk. This means we are well-prepared for slashing conditions when they occur. Below, we outline our initial AVS screening and node operator methodology, which we've used in the absence of slashing conditions for our first nLRT, ynETH. This methodology will guide our strategic decisions during these early stages and establish the credibility of our initial operator and AVS selections. We provide a brief overview of AVSs currently active on EigenLayer, which you can reference for an initial review of YieldNest's AVS exposure. Additionally, we evaluate professional node operators under consideration for onboarding and describe the due diligence process involved in selecting operator exposures. We plan to conduct an in-depth risk assessment of the most promising AVSs. This will help YieldNest fine-tune its AVS selection and optimize risk exposure when slashing conditions are introduced. For an example of our upcoming AVS risk analyses, see our [EigenDA AVS Risk Assessment](https://www.llamarisk.com/research/avs-risk-assessment-eigenda). Finally, we offer a collection of YieldNest Risk AVS briefs. These briefs provide an initial vetting of available AVSs and form a key part of YieldNest's initial AVS exposure strategy, ensuring a well-informed approach to managing AVSs. * [eoracle](https://hackmd.io/@YieldNestRisk/eoracle-screen) * [Witness Chain](https://hackmd.io/@YieldNestRisk/witness-chain-screen) * [Lagrange State Committees](https://hackmd.io/@YieldNestRisk/Lagrange-state-committees-screen) * [Lagrange ZK Prover](https://hackmd.io/@YieldNestRisk/lagrange-zk-prover-screen) * [OpenLayer](https://hackmd.io/@YieldNestRisk/openlayer-screen) * [Automata Multi-Prover](https://hackmd.io/@YieldNestRisk/utomata-multi-prover-screen) * [Xterio MACH](https://hackmd.io/@YieldNestRisk/xterio-mach-screen) * [AltLayer](https://hackmd.io/@YieldNestRisk/altlayer-screen) * [Omni Network](https://hackmd.io/@YieldNestRisk/omni-network-screen) * [Cyber MACH](https://hackmd.io/@YieldNestRisk/cyber-mach-screen) * [Brevis](https://hackmd.io/@YieldNestRisk/brevis-screen) See here a list of YieldNest Risk Node Operator assessments. These operators are intended to make up the initial white label operator partners and are expected to grow over time: * Validation Cloud (Report coming soon) * P2P (report coming soon) * We are also in talks with Google, T-Mobile, Figment, Nethermind, and Everstake. To read the full article on the initial AVS and operator selection, please check out our governance forum here: [Memorandum on YieldNest Initial AVS & Operator Selection](https://gov.yieldnest.finance/t/memorandum-on-yieldnest-initial-avs-operators-selection/98/1).

Read full YieldNest Risk Team article

# Intro to AVS/Network Evaluation by YieldNest Risk Team This post initiates a discussion on the emerging landscape of AVSs and how the YieldNest DAO can start to categorize and evaluate these systems both individually and as part of a portfolio of whitelisted AVS protocols. We will focus on key considerations for assessing risk and reward projections, which will be further elaborated in our forthcoming AVS Assessment Framework. Additionally, we plan to roll out a series of blog posts that will delve into specific aspects of EigenLayer and AVSs that all DAO members and YieldNest users should understand. ### What is an AVS/Network **Actively Validated Services (AVSs)** are blockchain-based systems that use the Ethereum PoS consensus mechanism, facilitated by EigenLayer, to boost their security and efficiency. These services engage Restakers and Node Operators, registered with EigenLayer, who execute tasks essential to the AVS’s functionality. By staking tokens and supplying computing resources, Restakers and Node Operators support the integrity and robustness of the AVS. Unlike traditional Ethereum staking, where staked ETH solely maintains Ethereum's network consensus, AVSs utilize these assets and others to validate specific operations. If a Restaker or a Node Operator acts against the AVS's slashing conditions, they face penalties through asset slashing, providing a crypto-economic incentive to adhere to the AVS's rules. Conversely, compliance with these rules ensures financial rewards from the AVS they support.

What is an AVS?

### Why an AVS Any application requiring trust may consider transforming into an AVS. Using EigenLayer, developers can embed verifiable trust into their applications, turning them into AVSs. There are three forms of trust that application developers can leverage, as categorized by EigenLayer in their recent blog post, [The Three Pillars of Programmable Trust: The EigenLayer End Game](https://www.blog.eigenlayer.xyz/the-three-dimensions-of-programmable-trust/): * **Economic Trust** - Trust derived from individuals making commitments and backing their promises with financial stakes. Economic trust is trust based in capital. These types of assurances are accepted when certain commitments are backed by financial stake at-risk that makes it irrational for a rational economic actor to behave badly. * **Decentralized Trust** - Trust sourced from a network operated by independent, geographically isolated operators. Decentralized trust is trust based in decentralization. These assurances derive from having a large and distributed enough validator set that you can be comfortable that they are not all colluding. * **Ethereum Inclusion Trust** - Trust that Ethereum validators will construct and include your blocks as promised, in accordance with the consensus software they operate. While the first and second trust models absorb the economics and decentralization of the Ethereum trust network, the fact that it is the Ethereum validators who restake enables a whole suite of powerful new features where you can experiment with new opt-in features to the Ethereum protocol without modifying the core Ethereum protocol. These opt-in features open up new proposer commitments on top of the existing proposer commitments from the consensus protocol.

Source: blog.eigenlayer.xyz

### How Does an AVS Work An AVS functions by integrating with Ethereum's consensus layer via the EigenLayer protocol, enabling blockchain applications to utilize Ethereum's security features without establishing their own consensus mechanisms. This process involves: * **Restaking on EigenLayer** - AVSs leverage EigenLayer to restake Ethereum (ETH), or supported ERC20 tokens, via Restakers, directly connecting to Ethereum's security and validation mechanisms. This allows AVSs to achieve up to the same level of security as Ethereum’s native transactions, and perhaps more importantly, bootstrap security in an effective way. * **Decentralized Consensus** - Through decentralized consensus mechanism, an AVS's off-chain operations are independently validated while benefiting from Ethereum's extensive validator network. * **Operator Involvement** - Node operators secure AVS operations by restaking their ETH or supported ERC20 tokens on EigenLayer, via Restakers, receiving additional validation rewards from AVS operations on top of Ethereum rewards. This creates a financially incentivized ecosystem to support AVS networks. * **Security and Efficiency** - By connecting with Ethereum via EigenLayer, AVSs bypass the need for creating and managing separate consensus operations, significantly reducing vulnerability to attacks and operational costs. * **Network Flexibility** - AVSs are free to define their own slashing condition (i.e. what happens when an operator fails to comply with the AVS's requirements) and their own Restakers/Node Operators requirements (e.g. what assets can to be staked, how much, geographical location of operators, and more). The technical essence of AVS operation lies in its innovative use of Ethereum's established security infrastructure through EigenLayer's restaking mechanism, facilitating a secure, efficient, and scalable validation process for blockchain applications outside the EVM scope. # AVS Categories To help inform YieldNest on the eventual curation of AVS exposures within a suitable basket, we present an initial approach to AVS categorization, whereby YieldNest may strive to diversify its exposure to frontrunners in each category. Categorization is also generally useful for conceptualizing the landscape of emerging services. ### 1. Rollup Services Within the EigenLayer ecosystem, each sub-category under Rollup Services represents a specialized function or set of functions that can be offered by a specific AVS. These protocols leverage the cryptoeconomic security provided by restaked ETH.\ The modular nature of these services enables the development of highly customizable and scalable blockchain applications. * **Data Availability**: this service ensures that all necessary data for transaction validation and execution is readily accessible and stored in a manner that can be reliably retrieved. * **Sequencing**: this service organizes and orders transactions into blocks, providing a reliable sequence for transaction processing and validation. It ensures that transactions are processed in the correct order, which is crucial for maintaining the integrity of the blockchain. * **Verification**: this service involves the process of confirming the accuracy and validity of transactions and blocks. Verification ensures that all transactions are legitimate and comply with the network's rules and protocols * **Finality and State Proofs**: finality provides mechanisms to ensure that once a transaction is confirmed, it cannot be reversed or altered. Finality guarantees that transactions are permanent and immutable after a certain point. State proofs are cryptographic proofs that validate the state of the blockchain at a specific point in time, ensuring the integrity and finality of the blockchain state. These proofs allow participants to verify the correctness of the blockchain state without needing to trust a central authority. * **Rollup-as-a-Service (RaaS)**: this service offers a turnkey solution for deploying and managing rollup instances. RaaS provides scalability and efficiency for blockchain applications, allowing developers to implement rollups without the need for extensive infrastructure management ### 2. Coprocessors Coprocessors are specialized modules designed to offload and handle specific computational tasks, often enhancing the performance and efficiency of blockchain networks. They typically involve advanced cryptographic operations and are focused on improving privacy, security, and computational efficiency. Sub-categories of coprocessors include off-chain, parallel, multi-party, and other tech related to computation. Use cases may include general computation, AI, database operations, and EVM computations. Coprocessors can be categorized based on their security design or by their intended use case: * **ZK coprocessors**: specialized modules designed to enhance the scalability and efficiency of blockchain networks by leveraging zero-knowledge proofs. * **Database coprocessors**: specialized hardware or software modules designed to accelerate database operations by offloading specific tasks from the main CPU to improve performance and efficiency. * **Trusted execution environments (TEE)**: secure enclaves are isolated environments where data can be encrypted, but computations can still be performed on them. The key idea is to isolate the data and computation so even privileged system processes can't access it. * **Secure multi-party computation (MPC)**: a cryptographic protocol that distributes a computation across multiple parties where no individual party can see the other parties’ data. * **Fully Homomorphic Encryption (FHE)**: permits computations on encrypted data without ever decrypting it, making it stable even with highly intensive computation. ### 3. Interoperability Interoperability services enable communication and data transfer between different blockchain networks. These protocols ensure that various blockchain ecosystems can interact, share resources, and operate together, improving the overall utility and flexibility of decentralized applications. Blockchain interoperability may be specific to value transfers or may be generalized to interoperability of any arbitrary data: * **Cross-Chain token bridges**: bridge networks that allow the secure transfer of tokens between networks. * **Cross-Chain messaging protocol**: Generalize bridge networks that allow the secure transfer of arbitrary data between networks, for example to make smart contract calls and facilitate data exchange. ### 4. Web3 Infrastructure This category covers all types of networks that outsource cryptoeconomic security (trust) from Ethereum in the form of restaked ETH. These networks leverage the security and trust of the Ethereum ecosystem by utilizing restaked ETH to secure their operations, ensuring robustness and decentralization. Decentralized networks may encompass the consensus layer, blockchain service provider, and application layer: * **Secured networks**: decentralized networks that operate as secure Layer 1, Layer 2, or sidechain solutions but outsource security (trust) from Ethereum (restaked ETH). All networks that require distributed validator mechanisms. This includes secured Layer 2s like Cyber, Xterio, and DODOchain "MACH" * **Oracles**: decentralized networks that provide reliable and tamper-proof external data to smart contracts, bridging information between blockchain and real-world. This includes eOracle and OpenLayer. * **DePIN**: decentralized networks that coordinate and manage real-world endeavors via on-chain token incentives. Possible use cases include car-sharing, peer-to-peer solar power trading, and 5G or WiFi connectivity. ### 5. AVS Tooling This category may include any AVS designed to support other AVSs. * **Inter-AVS services**: any service wherein an AVS provides services to other AVSs, including tools and services designed to facilitate interaction and collaboration between different AVSs. * **Developer Services**: tools and frameworks that assist developers in building, testing, and deploying AVSs, providing resources such as SDKs, APIs, and documentation. * **Management and Monitoring Services**: services for managing payments to restakers and operators, helping operators with node management, and monitoring. * **Security Services**: systems delivering essential security functionalities to decentralized protocols, instrumental in thwarting potential exploits and safeguarding staked assets, often combining off-chain monitoring and on-chain responses. # AVS Evaluation It can be posited that every decision in life can be analyzed through a Risk/Reward (R/R) lens. Therefore, we aim to develop a decision-making framework based on this approach. This section focuses on evaluating an AVS from a Restaker's perspective. This narrows the range of variables we must consider, which should help us construct a more effective framework and make more informed decisions. The objective of this evaluation framework is not to be exhaustive, but rather to introduce the reader to a mental model that we find useful when assessing any AVS. **Risk**\ Engaging with an AVS involves a comprehensive array of inherent risks even before assessing the specific characteristics of the AVS. Key risks include: * Native ETH staking risks * Risks associated with EigenLayer smart contracts * Centralization risks within EigenLayer * Potential collusion among Node Operators * Risks of unintended slashing Additionally, each AVS may present its own unique risks, such as: * Vulnerabilities in AVS-specific smart contracts * Subjective conditions for slashing * Network requirements that may not be optimal * The presence of centralized components within the system * Software used by node operators that may be prone to errors **Reward**\ Choosing to opting into an AVS undoubtedly offers benefits, most objectively measurable through the Annual Percentage Rate (APR). If the APR is sufficiently high to offset the risks outlined previously, engaging with a specific AVS could be a prudent decision. However, it's important to recognize that this isn't merely a matter of individual preference. The entire YieldNest DAO is affected by these decisions, emphasizing the need for a collective approach to risk evaluation. To support this, we are developing a comprehensive framework that will guide the DAO in making informed, methodical decisions about AVS onboarding. This framework will provide a structured means to assess both risks and rewards effectively. ### Takeaway on AVS Evaluation We believe that the array of AVS offerings could be extensive and unpredictable. Given the rapid pace of developments, it becomes a crucial responsibility for the YieldNest DAO to identify which AVSs are appropriate for integration. This selection process involves a detailed review of each protocol's unique attributes and a strategic approach to diversifying exposure across various AVS protocols. This task will undoubtedly be ongoing and starts with a thorough understanding of the risks and benefits associated with each AVS, enabling the DAO to make well-informed onboarding decisions. # ynLSDe **ynLSDe is a Liquid Restaking Token (LRT) developed to optimize yield from Liquid Staking Tokens (LSTs) by restaking them into EigenLayer. Users can leverage ynLSDe in DeFi to maximize returns on their restaked tokens without the need to unstake their assets. ynLSDe, at its core, is ynEIGEN—a generalized open-source LRT developed for EigenLayer that can accept and manage any asset, anticipating the restaking of LP tokens, stable coins, and more...** Our pioneering Liquid Restaking Token (LRT) ynLSDe is designed to maximize rewards on your LSTs with EigenLayer. It’s designed as a YieldNest Curated AVS Baskets and can function as collateral for the basket itself or serve as collateral for isolated AVS categories.
### Key Features Restaking of LSTs: Users can restake their LSTs from supported platforms like Lido, Frax Finance, Mantle, and Origin Protocol. Supported Tokens: * Lido (stETH, wstETH) * Frax (sfrxETH) * Mantle (mETH) * Origin Protocol (OETH, wOETH) **Reward Accumulation:** Earn rewards from multiple sources such as ETH staking yield, restaking yield, EigenLayer Points, YieldNest Seeds, future AVS rewards, and AVS Airdrops. **Liquidity Maintenance:** Maintain the liquidity of your staked assets while accessing higher yields. **Secure and Efficient:** Designed with a streamlined code to minimize vulnerabilities and ensure security. ### ynLSD Architecture Value Accrual: ynLSDe is designed to auto-compound rewards, enhancing the token's underlying value over time. The token's value increases as rewards are distributed and compounded on-chain. #### Value accrual example assuming an APY of 12.5% for ynLSDe: | Day | ynLSDe | ETH | | ------------------- | -------- | ---------- | |

Day 0

| 1 ynLSDe | 1 ETH | | Day 180 | 1 ynLSDe | 1.0625 ETH | | Day 365 | 1 ynLSDe | 1.125 ETH | ### ynLSDe Use Cases 1. Enhanced Yield: Restake LSTs to earn boosted yields through our carefully managed AVS basket. 2. Controlled Exposure: Holding ynLSDe allows users to earn boosted yields by restaking an isolated selection of LSTs to a pre-selected and carefully vetted Basked of AVS categories—all by simply holding a single liquid token. 3. Providing Liquidity: Use ynLSDe to provide liquidity in external DeFi protocols like Curve, earning additional revenues from swap fees and liquidity mining. 4. Lending/Borrowing: Lend ynLSDe on decentralized money markets like Aave or Euler, or use it as collateral to borrow other assets, including ETH or various stable coins. 5. Profit Realization: Withdraw ynLSDe for the underlying LSTs plus the accumulated restaking revenue from AVSs on YieldNest, or swap ynLSDe for ETH on decentralized exchanges.
# ynBNB **ynBNB is a Liquid Restaking Token (LRT) developed to optimize yield from Liquid Staking Tokens (LSTs) by restaking. With ynBNB, users can maximize their returns by restaking staked BNB tokens, such as slisBNB on Kernel. ynBNB, built on vaults, will eventually rebalance to the highest-yielding restaking opportunities, keeping security and flexibility in mind.**
### Key Features Restaking of BNB LSTs: Stake your BNB to receive slisBNB from Lista, which can be used which can be used to leverage Kernel. ### Supported tokens: * Lista DAO: [slisBNB](https://bscscan.com/token/0xB0b84D294e0C75A6abe60171b70edEb2EFd14A1B) Reward Accumulation: Earn from BNB staking yields, restaking rewards, YieldNest Seeds, future AVS airdrops & rewards. Liquidity Maintenance: Access higher yields while maintaining the liquidity of your staked assets. Secure and Efficient: Designed to minimize vulnerabilities and ensure security. *** ### ynBNB Architecture Value Accrual: ynBNB auto-compounds rewards, enhancing token value over time. As rewards are distributed and compounded, the value of ynBNB grows. Value Accrual Example (assuming 5.5% APY for ynBNB) | Day | ynLSDe | ETH | | -------------------------- | ------- | -------------- | |

Day 0

| 1 ynBNB | 1 slisBNB | | Day 180 | 1 ynBNB | 1.0278 slisBNB | | Day 365 | 1 ynBNB | 1.056 slisBNB | *** ### ynBNB Use Cases * Enhanced Yield: Restake slisBNB to earn boosted yields through restaking. * Controlled Exposure: Holding ynBNB allows users to earn boosted yields —all through a single liquid token. * Providing Liquidity: Use ynBNB to provide liquidity on DeFi platforms like Thena, earning swap fees and liquidity mining rewards. * Lending/Borrowing: Lend ynBNB on decentralized markets like Venus to use it as collateral to borrow assets like BNB or stablecoins. * Profit Realization: Withdraw ynBNB for slisBNB plus accumulated restaking revenue, or swap it for BNB on decentralized exchanges. # ynBTCk **ynBTCk is a Liquid Restaking Token (LRT) developed to optimize yield from Liquid Staking Tokens (LSTs) by restaking with Kernel. With ynBTCk, users can maximize their returns by restaking BTC tokens, such as BTCB, solvBTC and solvBTC.BBN . ynBTCk is a strategy LRT dedicated to restaking into Kernel.**
### Key Features Restaking of BTC LSTs: Stake your BTC derivatives to get BTCB (from Binance), solvBTC and solvBTC.BBN (both from Solv), which can be used to leverage Kernel. ### Supported tokens: * Binance: [BTCB](https://bscscan.com/token/0x7130d2a12b9bcbfae4f2634d864a1ee1ce3ead9c) * Solv:[ solvBTC](https://bscscan.com/token/0x4aae823a6a0b376de6a78e74ecc5b079d38cbcf7) and [solvBTC.BBN](https://bscscan.com/token/0x1346b618dc92810ec74163e4c27004c921d446a5) Reward Accumulation: Earn from BTC LST's staking yields, restaking rewards, YieldNest Seeds, future AVS airdrops & rewards. Liquidity Maintenance: Access higher yields while maintaining the liquidity of your staked assets. Secure and Efficient: Designed to minimize vulnerabilities and ensure security. ### ynBTCk Architecture Value Accrual: ynBTCk auto-compounds rewards, enhancing token value over time. As rewards are distributed and compounded, the value of ynBTCk grows. Value Accrual Example (assuming 5.5% APY for ynBTCk) | Day | ynLSDe | ETH | | -------------------------- | -------- | ----------- | |

Day 0

| 1 ynBTCk | 1 BTCB | | Day 180 | 1 ynBTCk | 1.0278 BTCB | | Day 365 | 1 ynBTCk | 1.056 BTCB | ### ynBTCk Use Cases * Enhanced Yield: Restake BTCB, solvBTC and solvBTC.BBN to earn boosted yields through restaking. * Controlled Exposure: Holding ynBTCk allows users to earn boosted yields —all through a single liquid token. * Providing Liquidity: Use ynBTCk to provide liquidity on DeFi platforms like Thena, earning swap fees and liquidity mining rewards. * Lending/Borrowing: Lend ynBTCk on decentralized markets like Venus to use it as collateral to borrow assets like BNB, BTC or stablecoins. * Profit Realization: Withdraw ynBTCk for BTCB plus accumulated restaking revenue. # MAX Vault-as-a-Service (VaaS) Unlock Yield, Securely Scalable ### Overview The MAX Vault-as-a-Service (VaaS) framework enables third-party protocols, asset managers, and institutional partners to launch customized MAX Vaults utilizing the YieldNest infrastructure. These programmable, composable yield layers integrate seamlessly with our execution engine and Layer 1 settlement guarantees, enabling secure, transparent, and efficient deployment of on-chain and off-chain yield strategies. Vaults launched under VaaS operate with independent subDAO governance, offering full control over capital allocation, rebalancing logic, fee structures, and underlying strategies. ### Purpose MAX Vault as a Service (VaaS) is a product offered by YieldNest, enabling external issuers of real-world assets (RWA) or DeFi products on-chain, such as ETH treasury companies or projects building DeFi solutions, to leverage the YieldNest technology stack to launch their own vaults. We provide comprehensive support for structuring, management, and integration into the broader DeFi ecosystem. VaaS simplifies DeFi participation by offering a managed service for yield generation. It delivers composable single-token vaults that unify multiple yield sources into efficient, managed assets. Users gain access to risk-adjusted, auto-compounded returns without managing underlying strategies, leveraging automation, governance, and Layer 1 settlement for optimal performance. There are 2 different VaaS options: * Launch a YieldNest-managed vault on the MAX infrastructure * Register and operate a strategy within a YieldNest vault ### Why Partner with YieldNest for VaaS? In a rapidly evolving DeFi landscape, YieldNest stands out by combining battle-tested infrastructure with a network of top-tier partners to drive TVL growth and yield optimization. Our ecosystem includes collaborations with leading protocols like Curve, Balancer, Chainlink, and Pyth, as well as security firms such as ChainSecurity and Zokyo. This ensures your custom vault benefits from seamless integrations, enhanced liquidity, and institutional-grade security. By partnering with YieldNest, you unlock: * Accelerated TVL Growth: Wrap your strategies into DeFi-native assets to attract broader distribution and deposits. * Revenue Alignment: Our fee model creates a win-win flywheel, where increased TVL generates shared revenue—e.g., at $600M TVL and 10% average APY, the YieldNest DAO could earn $6M annually from performance fees alone, while boosting emissions to your vault. * Expert Support: From initial structuring to ongoing optimizations, our team handles the technical heavy lifting so you can focus on your core assets. * Proven Ecosystem Impact: Join a platform backed by contributors like Yearn, Convex, and EigenLayer integrations, powering high-risk-adjusted returns (up to 35%+ APY in DeFi strategies). Launch your vault and tap into YieldNest's network to scale efficiently, many partners see rapid adoption through our composable designs. ### Key Benefits * Battle-Tested Implementation: Proven infrastructure with rigorous audits and real-world deployment. * Automatic Rebalancing: Optimization for capital allocation across whitelisted strategies. * Composable Underlying Strategies: Modular design allows integration of diverse on-chain and off-chain yields. * Continuous Monitoring and Improvements: Real-time oversight with ongoing strategy enhancements. * On-Chain Accounting: No black boxes—full transparency in all transactions and performance metrics. * Flexible Settlement Layers: Supports Ethereum L1, L2s, or alternative L1s based on client preferences. * Customizable Governance and Support: SubDAO-controlled parameters with dedicated YieldNest assistance. * Risk Tranches and Durations: Optional incorporation of junior/senior tranches or fixed durations for tailored risk profiles. * ERC-4626 Compliance: Ensures native integration with DeFi protocols, aggregators, and automated vaults. ### Core Features * ERC-4626 Compliant: Integrates natively with DeFi protocols, aggregators, and automated vault infrastructure. * Coprocessor: Optimizes capital allocation across whitelisted strategies based on real-time yield, duration, and risk. * SubDAO-Controlled Parameters: Vault creators govern whitelisting, strategy curation, risk flags, and withdrawal conditions. * On-Chain Transparency: All strategy rebalances, performance data, and yield distributions are visible and verifiable on-chain. * Withdrawal Buffer Layer: Ensures liquidity via dynamic buffers and optional secondary market integrations (e.g., Curve pools). ### Who Should Use VaaS? * RWA Protocols: Ideal for those seeking liquidity layers and programmable on-chain strategies for real estate, credit, or infrastructure assets. * Stablecoin Issuers: Allocate reserves to tokenized yield-bearing assets with trustless management. * Treasuries & DAOs: Access diversified off-chain returns through a transparent, auditable structure. * DeFi Projects and ETH Treasuries: Build custom vaults for yield optimization without in-house development overhead. ### Transparency & Risk Management * Tokenized Property Registry: All RWA assets are fully on-chain with live metadata for verifiable ownership and performance. * SubDAO Governance: Strategy rotations, fee updates, and whitelist changes are managed via proposals and time locks. * Risk-Adjusted Allocations: Yield-to-maturity, liquidity scoring, and regional diversification ensure sustainable returns. * Audits & Compliance: Periodic audits, off-chain escrow confirmations, and risk oracle integrations maintain accountability. * Guard Validation Engine: A core security layer that enforces on-chain rules for all transactions processed by the coprocessor, enhancing safety, transparency, and governance. The modular architecture allows strategies to synchronize with their primary settlement layer. For instance, a vault might settle on Ethereum L1 while integrating strategies across L2s or other chains via trustless data propagation. ### L1 Settlement in VaaS DeFi's 24/7 markets require real-time settlement for accuracy and cohesion. MAX Vaults provide a unified framework to: * Synchronize underlying strategies, asset states, and accounting records. * Track Net Asset Value (NAV) in real-time. * Ensure seamless accounting across integrated strategies. This prevents inefficiencies, inconsistencies, or vulnerabilities from fragmented data, delivering a reliable and transparent service. ### MAX Vault Architecture Each MAX Vault is configured with: * Price Asset: The denomination asset (e.g., ETH or USD equivalents). * Primary Underlying Asset: The core yield-generating asset (e.g., WETH or stablecoins). * Accounting Layer: The Layer 1 settlement chain (e.g., Ethereum L1). * Other Underlying Assets: Additional assets for diversified yield optimization. Users deposit assets to receive share tokens, with internal modules like the RateProvider for pricing and the Coprocessor for allocation and accounting. The Buffer Strategy, fully ERC-4626 compliant, maintains liquidity for withdrawals. For more details, refer to the YieldNest General Protocol Assessment:[ https://www.llamarisk.com/research/yieldnest-general-assessment](https://www.llamarisk.com/research/yieldnest-general-assessment). YieldNest's composable and flexible design allows us to tailor setups to client requirements, ensuring maximal efficiency, security, and functionality. ### Case Study: ynRWAx – Tokenized Real Estate MAX Vault ynRWAx is a MAX Vault created by a third-party RWA protocol to tokenize and yield-optimize a portfolio of real estate assets across varying maturity profiles. Users gain exposure to tokenized residential, commercial, and development properties with built-in auto-compounding yield and clear on-chain audit trails. This partnership demonstrates how VaaS can transform a $600M TVL strategy into a DeFi-native product, attracting wider users and generating sustainable 10–15% net APY while aligning incentives for all stakeholders. #### Vault Specifications (Example) * Accepted Assets: USDC, USDT. * Vault Token: ynRWAx. * Target APY: 10–15% (net of fees). * Settlement Layer: Ethereum L1. * Custody Layer: Licensed RWA custodians with on-chain proof-of-ownership. ### Capital & Yield Flow 1. Users deposit accepted assets (e.g., USDC/USDT) and receive the vault token (e.g., ynRWAx). 2. Funds are allocated across tokenized strategies via the Coprocessor. 3. Income (e.g., rental yields + loan repayments) flows into the vault and auto-compounds. 4. Withdrawals are fulfilled from the buffer layer or optional secondary market pools (e.g., ynRWAx/crvUSD). Express withdrawals use a dynamic buffer that holds a portion of vault assets in liquid form, adjusting automatically based on activity to support redemptions without disrupting long-term strategies. ### YieldNest Protocol Fees VaaS employs a straightforward fee structure to align incentives between the protocol, users, and partners. This fee flows to the YieldNest DAO to reward veYND holders and incentivize gauge emissions toward the vault. #### Simplified Example Calculation Consider a third-party RWA protocol with a real estate strategy targeting $600M in TVL and offering 10–15% APY. By wrapping it into ynRWAx via VaaS, it becomes a DeFi-compatible product, enhancing liquidity and accessibility. Assuming 10% average APY: * Annual yields generated: 10% of $600M = $60M. * 10% performance fee to YieldNest DAO: 10% of $60M = $6M per year. This $6M revenue to the DAO incentivizes veYND holders to direct extra YND emissions toward ynRWAx, boosting its APY and attracting more deposits. #### Synergistic Flywheel This design creates a win-win flywheel: * Partner Benefits: Increased TVL and broader DeFi distribution through YieldNest's ecosystem. * YieldNest DAO Benefits: Revenue from performance fees supports protocol growth. * veYND Holders Benefits: Motivated to vote for extra YND incentives to ynRWAx, as higher TVL means more fees and rewards. * User Benefits: Higher emissions lead to enhanced APY, driving more adoption and TVL, reinforcing the cycle. The result is a synergistic loop where all parties benefit: More TVL generates more yields and fees, which fund more incentives, attracting even more capital. For more on YieldNest tokenomics, see:[ https://docs.yieldnest.finance/governance-and-tokenomics/ynd-and-veynd-tokenomics](https://docs.yieldnest.finance/governance-and-tokenomics/ynd-and-veynd-tokenomics). ### Get Started with VaaS Today Ready to unlock new yield opportunities and scale your protocol? Partner with YieldNest to deploy a custom MAX Vault tailored to your needs. # YieldNest DAO **The YieldNest DAO is the governance backbone of the YieldNest ecosystem, overseeing protocol decisions, products, and subDAOs. Its goal is to create a self-sustaining, decentralized system that operates autonomously, driven by community participation and AI-enhanced decision-making.** At its core, the YieldNest DAO empowers YND token holders to shape the protocol’s evolution. Governance will progressively decentralize, transitioning from core contributor oversight to full community control. Initially, the core team will provide strategic guidance, but as the ecosystem matures, DAO participants will take full governance responsibility, ensuring true decentralization. We believe in the inevitable rise of DeFi as a fully self-sovereign financial system. The YieldNest Protocol and its subDAOs serve as building blocks for this future, integrating with other DeFi primitives to simplify complexity, enhance security, and deliver the best risk-adjusted returns. At the same time, YieldNest strengthens the DeFi ecosystem, making it more resilient, adaptive, and antifragile. YieldNest DAO combines hybrid human/AI governance with AI-driven strategy execution. Advanced restaking and DeFi mechanisms ensure the protocol, its products, and its ecosystem continue to thrive. This approach enables continuous evolution and strengthens its role in shaping the future of decentralized finance.

Powerd by Aragon V2

YieldNest’s governance system is built on Aragon V2, leveraging its framework to improve and harden the YieldNest DAO continuously. ### YieldNest Products & subDAO’s
All products and subDAOs each have their own dynamic fee structure see below for an overview of all products and subDAOs. #### MAX LRTs: [Read more about MAX LRTs](https://docs.yieldnest.finance/protocol-design/max-lrts-the-apex-of-yield-optimization) * ynETH MAX (**ynETHx**): ETH-based strategies * ynBTC MAX (**ynBTCx**): BTC-based strategies * ynUSD MAX (**ynUSDx**): USD-based strategies * ynBNB MAX (**ynBNBx**): BNB-based strategies #### LRT Strategies: [Read more about LRT Strategies](https://docs.yieldnest.finance/protocol-design/lrt-strategies) * ynETH – Native ETH Restaking strategy (nLRT) * ynBTCk – BTC Restaking strategy focused on the BNB chain (LRT) * ynLSDe – ETH Restaking strategy for LSDs (LRT) * ynBNB – BNB-Based restaking strategy (LRT) #### subDAOs YieldNest and Nest AI are deeply connected, with Nest AI becoming the first SubDAO in the YieldNest ecosystem. This synergy creates immense value for both. {% embed url="" %} NEST AI Tokenomics & YieldNest subDAO Framework {% endembed %} ### YieldNest DAO Token YND & veYND [**A detailed description of the YND & veYND Tokenomics.**](https://docs.yieldnest.finance/governance-and-tokenomics/ynd-and-veynd-tokenomics) YND is the native governance token of the YieldNest DAO and can only be used for voting when staked, accumulating veYND voting power over time. Staked veYND grants holders influence over protocol decisions and a share of protocol revenue, aligning rewards with active governance participation. More in-depth: YieldNest’s governance system is built on Aragon V2, leveraging its framework to continuously enhance and strengthen the DAO. Upon staking, users immediately start earning yield, which increases in parallel with their voting power. Exiting veYND to reclaim YND requires a 30-day queue and a minimum deposit of 42 YND for locking.

YND & veYND staking

### StakeDAO's sdYND Liquid Lockers as an Alternative to veYND For those who prefer delegated voting and auto-compounding without the exit queue, liquid lockers, developed in collaboration with StakeDAO and Convex, will provide an alternative staking solution. We are offering sdYND liquid locker as a flexible alternative to the veYND staking. Unlike veYND, sdYND provides immediate liquidity and flexibility. Advantages of using sdYND include: * **Liquidity**: Users receive sdYND tokens, which can be traded or utilized in DeFi protocols, ensuring funds remain accessible. * **Flexibility**: Users can merge or unmerge positions at their convenience without the extended waiting periods of traditional locking mechanisms. * **Delegated Governance**: Maintain governance rights through delegated voting, actively participating in YieldNest DAO decisions. * **Auto-compounding Rewards**: Earn compounded staking rewards automatically, enhancing yield without active management. sdYND liquid lockers offer a seamless balance between participation in YieldNest governance and maintaining liquid capital. However keep note that delegated voting will limit direct governance participation compared to holding veYND directly. ### Governance Process

High level governance process

#### Forum Discussion & Temperature Check Before any official proposal is made, proposers can open a temperature check thread to share their ideas and discuss them in the [YieldNest governance forum](https://gov.yieldnest.finance/). This step helps voters better understand proposals and encourages active governance participation. Anyone can initiate a temperature check discussion. AI Enhancement: AI-driven analytics can summarize discussion threads, highlight key points, and assess community sentiment to provide data-driven insights for voters. This allows for better engagement and ensures proposal improvements before moving to a formal vote. Once the temperature check has facilitated a healthy discussion, a formal snapshot proposal and forum proposal thread can be created. *** #### Formal DAO Proposal The DAO proposal is then formally submitted. Initially, only whitelisted veYND holders with at least 500,000 veYND can initiate formal proposals. Interested parties can analyze proposed changes, hold discussions, and gather support. *** #### Voting Process Once a proposal has been created, token holders vote via the YieldNest DAO platform, built in collaboration with Aragon. The voting period lasts 7 days but will be extended by 3 days if a quorum is reached right before the deadline, ensuring fair participation. *** #### Execution Once a DAO proposal has passed, a 3-day waiting period is initiated. Users who object to the outcome can withdraw funds or make necessary adjustments during this time. After the waiting period, the YieldNest multi-sig executes the proposal, or work begins if it’s not an on-chain action. *** #### Incentives Allocation Incentive allocations are voted on monthly through a weighted vote, where the percentage of votes received determines the share of incentives allocated to different initiatives. This system mimics the CRV bribing model, but instead of discretionary rewards, incentives are distributed to all eligible users to ensure long-term alignment. veYND holders vote on where to allocate YND incentives, with options including: * MAX LRTs * LRT Strategies * Integrations such as LP pools This process requires a list of potential allocation targets, which could lead to vote markets where participants bribe veYND holders for votes. *** #### Security Council The Security Council comprises nine members, requiring a 5-of-9 majority for emergency action. Members are elected every six months via an on-chain vote. The Security Council is responsible for mitigating critical risks and can take emergency action without a vote if required. These emergency actions include addressing: * Critical security vulnerabilities that could endanger user funds * Threats to protocol integrity # Governance Process

High level governance process

#### Forum Discussion & Temperature Check Before any official proposal is made, proposers can open a temperature check thread to share their ideas and discuss them in the [YieldNest governance forum](https://gov.yieldnest.finance/). This step helps voters better understand proposals and encourages active governance participation. Anyone can initiate a temperature check discussion. AI Enhancement: AI-driven analytics can summarize discussion threads, highlight key points, and assess community sentiment to provide data-driven insights for voters. This allows for better engagement and ensures proposal improvements before moving to a formal vote. Once the temperature check has facilitated a healthy discussion, a formal snapshot proposal and forum proposal thread can be created. *** #### Formal DAO Proposal The DAO proposal is then formally submitted. Initially, only whitelisted veYND holders with at least 500,000 veYND can initiate formal proposals. Interested parties can analyze proposed changes, hold discussions, and gather support. *** #### Voting Process Once a proposal has been created, token holders vote via the YieldNest DAO platform, built in collaboration with Aragon. The voting period lasts 7 days but will be extended by 3 days if a quorum is reached right before the deadline, ensuring fair participation. *** #### Execution Once a DAO proposal has passed, a 3-day waiting period is initiated. Users who object to the outcome can withdraw funds or make necessary adjustments during this time. After the waiting period, the YieldNest multi-sig executes the proposal, or work begins if it’s not an on-chain action. *** #### Incentives Allocation Incentive allocations are voted on monthly through a weighted vote, where the percentage of votes received determines the share of incentives allocated to different initiatives. This system mimics the CRV bribing model, but instead of discretionary rewards, incentives are distributed to all eligible users to ensure long-term alignment. veYND holders vote on where to allocate YND incentives, with options including: * MAX LRTs * LRT Strategies * Integrations such as LP pools This process requires a list of potential allocation targets, which could lead to vote markets where participants bribe veYND holders for votes. *** #### Security Council The Security Council comprises nine members, requiring a 5-of-9 majority for emergency action. Members are elected every six months via an on-chain vote. The Security Council is responsible for mitigating critical risks and can take emergency action without a vote if required. These emergency actions include addressing: * Critical security vulnerabilities that could endanger user funds * Threats to protocol integrity # YieldNest DAO Discussions The formation of the **YieldNest DAO and subDAOs** will be an **iterative and open process**, inviting the entire community to participate. Our goal is to maintain **transparency and clarity**, encouraging all DAO members to join our **governance forum** to share ideas and engage in discussions. We actively support community involvement and will fund **educational initiatives and proactive contributions** whenever possible.\ \ **Visit:** [**https://gov.yieldnest.finance**](https://gov.yieldnest.finance/)

YieldNest DAO Governance discussions

The YieldNest DAO oversees all YieldNest products, and as these projects grow, they will evolve into their own subDAOs. [NEST AI](https://0xnest.ai/) is the first subDAO of YieldNest and serves as its first AI agent, designed to enhance YieldNest products while also generating independent revenue. The income from NEST AI’s services will flow back to the YieldNest DAO, contributing to the ecosystem’s long-term sustainability.
# YND & veYND Tokenomics YieldNest's token economic model YieldNest operates on a two-token model consisting of YND and veYND. veYND is acquired by staking YND. veYND holders earn all protocol revenue through a buyback-and-distribute model, aligning incentives between governance participants and the protocol’s long-term growth.

YND

veYND

The YieldNest governance system is built on Aragon V2, leveraging its framework to strengthen and refine DAO operations continuously. When users stake YND, they start earning yield, which grows alongside their voting power. For detailed information, check the veYND Parameters or ask the community for more info. We love ideas, input, and collaboration. This will be rewarded. Exiting veYND to reclaim YND requires a 30-day queue and a minimum deposit of 42 YND for locking. For those who prefer delegated voting and auto-compounding without the exit queue, liquid lockers, developed in collaboration with [StakeDAO](https://www.stakedao.org/) and [Convex](https://www.convexfinance.com/), will provide an alternative staking solution. These liquid lockers will not be available at launch but will be rolled out over time. veYND holders will have the option to merge or unmerge their positions, offering greater flexibility in governance participation and yield optimization. ### **Complete YieldNest Value Flow & YND/veYND Mechanics**

YieldNest’s Complete Value Flow

### **Value Flow Pt. 1: Integrations, Products & SubDAO's**

Value Flow Part 1

1. Users deposit assets into the YieldNest ecosystem, where funds are allocated across: * YieldNest Integrations * YieldNest Products * YieldNest subDAOs 2. These assets are deployed into LRT Strategies, where they immediately start generating auto-compounding yields for users optimized and supported by NEST AI. 3. Yield & Fee Generation: * The yield distributor collects returns from LRT strategies. * Fees are dynamically taken per strategy and flow into the fee distributor. ### **Value Flow Pt. 2: Governance, YND & veYND**

Value Flow Part 2

1. Incentive gauges, governed by veYND holders, allocate YND across a selected set of whitelisted gauges that are monitored and optimized by NEST AI in collaboration with Merkl. 2. Governance & Revenue Distribution: * When activated, veYND holders govern LRT strategy fees. Initial distribution is directed to veYND holders, with allocation parameters set by governance and subject to adjustment over time. Treasury and subDAOs may also receive allocations as decided by governance. * Fees collected follow a buyback-and-distribute model, where they are used to repurchase YND, which is then distributed to veYND holders. YieldNest governance can vote to add multiple payout options, for example, enabling yield to be received in various asset types once the module is activated. * YieldNest subDAOs generate additional revenue, which also feeds into this system. 3. YND & veYND Governance Mechanics: * YND holders stake their tokens to receive veYND. * veYND represents governance power, which scales with the lockup period—the more governance power owned, the higher the share of collected fees. * veYND holders vote on key decisions related to fee distribution, integrations, products, and subDAOs, all supported by NEST AI. * veYND holders directly benefit from protocol revenue, making it profitable to stake YND and participate in governance. * For those who prefer delegated voting and auto-compounding without the exit queue, liquid lockers, developed in collaboration with StakeDAO and Convex, will provide an alternative staking solution. These liquid lockers will not be available at launch but will be rolled out over time. veYND holders can merge or unmerge their positions from the liquid locker, providing greater flexibility in governance participation and yield optimization. *** ### **veYND: Capturing the Value of an Intelligent DeFi Engine**

Future High level architecture MAX LRTs

veYND holders directly profit from MAX LRTs, which function as an evolving, intelligent DeFi engine. These AI-enhanced yield aggregators continuously analyze data, discover new strategies, and optimize capital deployment, ensuring that the collective efforts and yield generated by both human and AI-driven decision-making flow back to veYND stakers. MAX LRTs evolve continuously through **NEST AI**, which operates 24/7 to identify, test, and propose new strategies. Initially, these strategies are integrated externally, rigorously monitored, and assessed for safety and efficiency. Once validated, they are enshrined within MAX LRTs under the governance of a dedicated subDAO, ensuring optimal execution. This hybrid model—where AI autonomously scouts and oversees strategies while governance fine-tunes parameters—creates a self-expanding system. Over time, MAX LRTs could transition toward full autonomy, redefining yield optimization at scale. [Read the full MAX LRT docs](https://docs.yieldnest.finance/protocol-design/max-lrts) for more info. *** ### The MAX LRT Growth Flywheel & veYND Profitability As more data is fed into the system, MAX LRTs learn, adapt, and refine their strategies over time. New strategies are first introduced as external integrations, undergoing rigorous testing and monitoring. Only those that demonstrate long-term safety and efficiency are enshrined within the MAX LRT, operating under subDAO governance. The modular and flexible architecture of MAX LRTs ensures that strategies always sync back to their main settlement layer. For example, ynETH MAX (ynETHx) settles on Ethereum L1 but can deploy and integrate strategies across Ethereum L2s or any trustless interoperable chain, optimizing capital efficiency while maintaining L1 settlement assurances. As MAX LRTs autonomously integrate and expand, veYND holders benefit in multiple ways: * All profits and protocol revenue from MAX LRTs are distributed to veYND holders via a buyback-and-distribute model. * The increasing intelligence of MAX LRTs enhances capital efficiency, growing the overall yield potential of the system. * AI-driven strategy optimization ensures continuous improvement, compounding the value captured by veYND holders over time. *** ### Why Staking YND for veYND is Profitable By staking YND for veYND, holders position themselves at the core of this DeFi engine, benefiting from the AI-driven evolution of MAX LRTs. As the system expands, refines, and automates, the yield flow back to veYND holders increases, making it a highly profitable long-term staking mechanism. This hybrid model of AI automation and governance oversight could ultimately lead to a fully autonomous, self-optimizing financial system, redefining yield generation and risk-adjusted returns at the highest level. 🚀 # YND Token Distribution ## $YND Tokenomics
**Overview** * Token Name: YieldNest DAO * Ticker: YND * Total amount of YND Tokens: 1,000,000,000 * Type: Utility & Governance * Blockchain: Ethereum, BNB, INK (more to announce) [Read the full announcement →](https://medium.com/@yieldnest/yieldnest-ynd-tokenomics-own-govern-earn-7dba54a27960) YND is the governance token of YieldNest, designed to align incentives between participants and the protocol’s long-term growth. The token plays a pivotal role in the ecosystem, enabling governance through veYND and facilitating value accrual via a buyback-and-distribute model. By staking YND, users receive veYND, which grants them voting power and a share of the protocol's revenue. This model ensures that governance participants are deeply integrated into YieldNest’s success. The total supply of YND is strategically allocated to reward the community, incentivize ecosystem growth, and secure long-term protocol sustainability. YND tokens and directly rewarding our supporters. We will continuously buy back $YND and distribute it, expanding and innovating with additional buyback strategies as our ecosystem grows. [Read more about how YieldNest will generate fees →](https://docs.yieldnest.finance/governance-and-tokenomics/ynd-and-veynd-tokenomics) ### **Token Distribution & Vesting Schedule** The token distribution is designed to emphasize community participation and long-term sustainability. The token distribution is structured as follows:

Token Distribution

**Community & Rewards – 40.94%** * Dedicated to DeFi Partnerships, future Airdrops, potential future Seeds Seasons, Pioneer NFT Program, Programmatic Incentives, and other Community Incentives. * Encourages active participation and long-term growth. * Lock-up: vesting linearly for 84 months *(7 years)* **Genesis Airdrop - 6.56%** * Allocated to users and partners eligible through our Seeds loyalty program participation. **Private Sale – 18%** * Allocated to completed strategic contributors and partners. * Lock-up: Unlocked at TGE based on prior completed 12-month vesting cycle. **Strategic Round – 2%** * Allocated to newly entered and future strategic contributors and partners. * **Lock-up:** vesting linearly for 36 months *(3 years).* **Team and Advisors – 20%** * Reserved for the core team and advisors who will contribute to YieldNest's long-term success. * **Lock-up:** vesting linearly for 36 months *(3 years)*. **Marketing & Partnerships – 5%** * Allocated to launchpools on strategic platforms * Marketing and public relations initiatives (press, podcasts, and KOLs) * Partner protocol incentives and co-marketing campaigns * Strategic event sponsorships (conferences, hackathons, panels etc.) * Educational content, documentation, video production, and more **Ecosystem & Liquidity – 7%** * Will be converted to Protocol-Owned Liquidity (POL) and transferred to governance control * Allocated to support ecosystem initiatives and on-chain liquidity partners to drive adoption and expand the reach of YND * Used for initial liquidity provisioning, market maker engagement, and treasury management * Supports integrations with DEXs, bridges, and aggregators **Public Sale – 0.5%** * Allocated to IDO platforms that supported YieldsNest early on. ### YND Token Utility
YND empowers a diverse set of utilities designed to create ongoing demand and long-term holder value. #### Core Utilities: * **Governance:** Shape the future of YieldNest by voting on protocol improvements, new integrations, and critical DAO decisions. * **Staking (veYND):** Stake your YND for veYND, and earn more rewards, future revenue sharing, and boosted governance voting power. * **Rewards & Incentives:** Actively earn additional YND through liquidity pools, yield farming, and dedicated community events. * **Delegated Governance via Liquid Lockers (via sdYND with StakeDAO):** Delegate your governance power and compound your rewards. Dive deep and participate in YieldNest governance and visit our governance form via the link below, or keep browsing the docs and upgrade your DeFi knowledge.\ \ [YieldNest Governance Forum →](https://gov.yieldnest.finance/) # veYND Parameters $YND -> veYND = $$$ **How is veYND Used?**\ veYND is the governance token for YieldNest, enabling users to participate in decentralized decision-making. To mint veYND, users stake YND and receive an NFT that accumulates voting power over time. The longer YND is locked, the greater the voting power, aligning long-term commitment with increased influence.

veYND bonding curve

Holding veYND gives users the right to vote on critical protocol decisions, including yield strategies, parameter adjustments, and incentive structures. It also entitles holders to a share of protocol-generated rewards, proportional to their voting power. This model ensures that YieldNest remains governed by its community, with protocol evolution guided by its most engaged stakeholders. *** **veYND Parameters** | **Category** | **Name** | **Description** | **Value** | | ---------------------- | ---------------- | ------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------ | | **Voting Power Curve** | Max Multiplier | Maximum voting power multiplier, achieved when veYND is locked indefinitely. | 4x | | | Max Duration | Time to reach max multiplier under a linear curve. | 3 years | | | Warmup Period | Time before veYND becomes active for voting after locking. | 0 | | **Exit Queue** | Cooldown | Period after initiating an exit during which veYND is illiquid, earns no rewards, and holds no voting power. | 30 days | | | Min Lock | Minimum lock duration before entering the exit queue. | 0 | | | Exit Fee Percent | Fee paid in YND upon withdrawal. | 0% | | **Escrow** | Minimum Deposit | Minimum amount of YND required to mint veYND. | 100 YND | | **ERC721** | Name | Locked NFT name | veYND | | **ERC721** | Symbol | Locked NFT Icon | | These parameters are subject to change through governance proposals voted on by veYND holders, enabling flexible and community-driven protocol evolution. # YieldNest DAO Roadmap The YieldNest DAO and its core contributors have outlined an initial roadmap designed to guide the DAO through its early development. This roadmap serves as a structured path to progressive decentralization, ensuring that the DAO reaches a stage where it is sufficiently decentralized and capable of self-sustained governance. Once this foundation is established, the future direction of YieldNest DAO will be mapped out in collaboration with its community. ### **YieldNest DAO Roadmap**
The YieldNest DAO roadmap outlines the key milestones for the protocol’s progressive decentralization, ecosystem expansion, and AI-driven governance enhancements. It is designed to guide YieldNest’s evolution, ensuring it becomes a fully autonomous, self-sustaining, decentralized organization. The core contributors will lead the early development, establishing the foundation for the DAO. As governance matures, decision-making power will transition to the community, with AI-enhanced mechanisms supporting strategy optimization, governance analytics, and automated treasury management through a hybrid human/AI approach. *** #### **Q1 2025: Scaling MAX LRTs & Strengthening Restaking Strategies** The focus is on expanding and optimizing YieldNest’s core products, including: * Releasing new MAX LRTs, increasing exposure to diverse restaking and DeFi strategies. * Enhancing DeFi & Restaking strategies, improving capital efficiency, and fortifying security mechanisms. These steps will solidify YieldNest’s position as the leading liquid restaking/DeFi protocol, preparing the DAO for broader multichain integrations. *** #### **Q2 2025: DAO Formation & Governance Infrastructure** YieldNest will focus on building the DAO’s governance structure and expanding its ecosystem. Key milestones include: * $YND Token Generation Event (TGE): Enabling governance participation and incentive distribution. * Multichain Expansion: Extending YieldNest’s reach beyond Ethereum and BNB Chain to other L1 and L2 networks. * Strategic Round Extension: Securing additional funding for long-term development. * YieldNest DAO Formation: Establishing a structured governance model, enabling veYND holders to participate in key decisions. This phase marks the official transition into a decentralized governance model, setting the groundwork for community-led decision-making. *** #### **Q3 2025: AI-Driven Strategy Optimization & LRT Expansion** Hybrid AI governance and strategy execution will be a core focus: * AI Agents for Strategy Optimization & Hybrid Governance: YieldNest will deploy NEST AI, an AI-driven governance agent, to enhance strategy execution, optimize yield generation, provide risk assessments, and support DAO governance processes. * MAX LRT Multichain Strategy Expansion: Expanding MAX LRTs to integrate with more multichain restaking and DeFi strategies. Releasing ynUSDx and the first MAX LRT VaaS, ynRWAx this will be a game changer for DeFi and CeFi, bringing fresh outside capital into DeFi and vice versa. * Release of New MAX LRTs Products: Additional LRT strategies will be introduced, offering users more yield exposure and capital efficiency. * Liquid Lockers for veYND Positions: YieldNest will roll out liquid lockers, developed in collaboration with [StakeDAO](https://www.stakedao.org/) and [Convex](https://www.convexfinance.com/), offering an alternative staking solution for users who prefer delegated voting and auto-compounding without the exit queue. Users will also have the flexibility to merge or unmerge veYND positions from liquid lockers, optimizing governance participation and yield strategies. This phase brings YieldNest closer to a fully automated, AI-enhanced DeFi ecosystem where intelligent governance mechanisms support a scalable and long-term focused DAO. *** #### **Q4 2025: DAO Decentralization & Stablecoin Development** In the third quarter of 2025, governance will transition toward further decentralization, with community-led development playing a key role. Major developments include: * $YND DAO Decentralization: Governance authority shifts further into the hands of veYND holders, with the core contributors stepping back as active decision-makers. * Stablecoin Development: The DAO will develop a native stablecoin designed for enhanced capital efficiency within YieldNest’s ecosystem and generate income for the YieldNest DAO. * MAX LRT Hardening & Strategy Expansion: Strengthening MAX LRT infrastructure, improving security parameters, and expanding DeFi integrations. This stage represents the maturing phase of the DAO, where the community directs protocol evolution and introduces new DeFi innovations. *** #### **Q1 2026: Full Stablecoin Launch & DAO Autonomy** YieldNest will reach full DAO autonomy, with governance and strategic decision-making entirely in the hands of the community. The final roadmap milestones include: * Stablecoin Release: The official launch of YieldNest, its stablecoin, provides a stable, yield-bearing asset within the YieldNest ecosystem. * Completion of DAO Decentralization: By this point, the YieldNest DAO will function independently, with AI governance tools assisting decision-making and automation. * MAX LRT Hardening & Strategy Expansion: Finalizing security enhancements, strategy refinements, and long-term sustainability improvements for MAX LRTs. This milestone marks the successful completion of YieldNest’s initial roadmap, transitioning the protocol into a self-sustaining, community-driven ecosystem with autonomous AI governance, optimized restaking/DeFi strategies, and a fully decentralized decision-making structure. 🚀 # Seeds Program ### Thanks everyone! All the current Seed Seasons have concluded. #### Make sure you stay tuned for more exciting updates!
The YieldNest seeds program is designed to recognize and reward active engagement from community members and partners. YieldNest believes that early adopters play a significant role in the growth and success of the ecosystem. Therefore, through the seeds program, YieldNest aims to connect the dedication and support of users to tangible rewards, including participation in future airdrops. The accumulation of seeds is not just a measure of contribution but also a stake in future rewards that YieldNest will distribute. This guide explains the process of earning seeds and how they pave the way for benefits during YieldNest's planned airdrop. YieldNest is committed to ensuring that every action within the ecosystem leads to rewarding outcomes. ### How to Earn Seeds? The simplest way for users to earn seeds is by restaking their assets into any YieldNest products. As YieldNest enhances its network through partnerships and integrations, users will find more ways to accumulate seeds. This includes providing liquidity to DeFi protocols in partnership with YieldNest, referrals, and other uopportunities. With our base reward program, you can receive 2 seeds per hour (based on ETH) for every asset you hold. (DeFi partner tokens may receive a different base rate) For example, holding 5 ynETH yields 240 seeds daily (2 Seeds \* 24 hours \* 5 ynETH) If you activate boosts, your base rate will increase. For example, if you have a +100% (2x) boost, you will receive 4 seeds per ynETH per hour.
### Seeds Formula: How Many Seeds Can Users Earn? In order to determine our user’s Seed allocation (Di), we take the base rate (R) of two Seeds, multiplied by the amount of ERC20 token (Ei) deposited and again multiplied by the amount of hours participated (hi). To this base deposit, the user may have various boosts applied (Bi), for a certain amount of hours. The boosts apply only to the base rate and therefore stack but do not compound. The user also is able to receive their referral bonus (f), calculated as being 10% of the referred wallet’s balance.
In order to make the formula be unified across all Seed-eligible sources, the base rate (R), balance (Ei), amount of hours (hi) and boost (Bi) can be applied for every applicable boost and have the above formula repeatedly summed in order to get the total number of Seeds for any specific user. By using the above logic, we can therefore get the total number of Seeds (Ptotal)across all eligible sources expressed as such:
∑*i* : Sums over all users participating in the protocol ∑*ERC20*: Going over every ERC-20 token staked or locked by all users ERC20*i*: Representing the ERC-20 token staked by individual user i B*b* : Boost factor applied to a specific pool or to the user. h*i,b* : The number of hours that the i-th depositor has been participating in a specific pool. Note that this can change and vary depending on the number of hours that a certain boost has been active in a certain pool. ∑*f* f*i,f* : The sum of all referral boosts applied to an individual investor i. These are all summed up because they do cause additional Seeds emissions. It is important to note that the way Seeds are calculated needs to be uniform across all of these sources. To that end, this is a mathematical representation of YieldNest’s Seed formula that closely follows the logic behind the code. We have run several tests in order to ensure that the information provided below is closely aligned with actual on-chain Seed calculation. At most we have had a negligible margin of error (<0.09%), due to the way hours are counted and updated across the different pieces of software we have used. Also, with Season 1, YieldNest is enabling transfers. This means that users will be able to accumulate Seeds not just by staking, but also from other activities, such as participating in liquidity pools and other upcoming planned features and campaigns. These are all considered as an ERC20 balance that is standardized in order to be counted the same way within the Seeds formula. ### Seasons We have planned various actions and boosts that will be released over time and are in line with new integrations, features and product development. In this section, you will find an overview of the current seasons with its available actions and boosts. Each season is time-limited, meaning the actions listed there will no longer be available after the epoch ends. {% hint style="info" %} Below you can find an overview of our seasons. Further actions within each season may and will be added. {% endhint %} #### Season OG (Epoch 1+2) *Ended August 20th, 2024* * 2 Seeds per hour per restaked ynETH * 5x Special Launch Program Boost - *lasted for 2 times 1 week* * 1.15x [Pioneer NFT Holders Boost](/yieldnest-loyalty-program/pioneer-program) * 1.15x Upgraded point system launch - *2 weeks for ynETH only; pools not included* * Exclusive PrimeStaked Airdrop - *For all Primestaked users that accrued PrimeETH XP points* * 10% [Referral bonus](/yieldnest-loyalty-program/ynrwax-referral-program) * 25% One-time referral boost for 30 days for referring or being referred - *Ended* * [Integrations](broken://pages/k0jThze4QNfwAvywITkk) #### Season 1 *August 20th - October 22nd, 2024* * 2 Seeds per hour per restaked ynETH, ynLSDe * 1.15x [Pioneer NFT Holders Boost](/yieldnest-loyalty-program/pioneer-program) * 5x Product Launch Boost -> ynLSDe, ynETH - *2 weeks* * 3x Product Launch Boost -> ynLSDe, ynETH - *2 weeks* * 5% Exclusive PrimeStaked Seeds Boost - *For all Primestaked users that migrated to ynLSDe* * 0.33 Seeds per hour per restaked ynBNB * 5x Product Launch Boost -> ynBNB - *4 weeks* * 10% [Referral bonus](/yieldnest-loyalty-program/ynrwax-referral-program) * [Integrations](/yieldnest-loyalty-program/ynrwax-referral-program) #### Season 2 *Started October 22nd, 2024 - May 28th, 2025* * 2 Seeds per hour per restaked ynETH, ynLSDe * 0.33 Seeds per hour per restaked ynBNB * 1.15x [Pioneer NFT Holders Boost](/yieldnest-loyalty-program/pioneer-program) * Season 2 boost -> 2x for 2 weeks - ynETH, ynLSDe, ynBNB * 10% [Referral bonus](/yieldnest-loyalty-program/ynrwax-referral-program) * [Integrations](/yieldnest-loyalty-program/ynrwax-referral-program) * 5% Exclusive PrimeStaked Seeds Boost - *For all Primestaked users that migrated to ynLSDe* * YieldNest Max vaults - *Launch dates to be announced* * Multichain Boost - *To be decided* ### Frequently Asked Questions - FAQ
Are Seeds Transferable? Loyalty seeds are tied to users' participation and are non-transferable.
Can Users Lose Their Seeds? Once accrued, users' seeds are secure and stop accruing only if they withdraw their staked ETH. Engaging in activities like providing liquidity or moving ETH to Layer 2s continues to generate seeds. YieldNest recommends users stay updated with its community channels for the latest information regarding its loyalty program. To check accumulated seed amounts, users must connect their wallets to [YieldNest’s dashboard.](https://app.yieldnest.finance/seeds)
More opportunities will become available to earn seeds as more integrations and partnerships are introduced, including adding liquidity on external DeFi protocols, utilizing other liquid restaking tokens, and more. YieldNest encourages users to stay tuned for updates on its community channels to ensure they don't miss out on these exciting opportunities to boost their seeds: 🌎 [Website](https://www.yieldnest.finance/)\ 💬 [Discord](https://discord.com/invite/ayAZuQgFaE)\ 📣 [Telegram](https://t.me/YieldNest) \ 🐦 [Twitter](https://twitter.com/YieldNestFi) # YieldNest Seeds Disclaimer By participating in any activities promoted by YieldNest or accessed through [www.yieldnest.finance](http://www.yieldnest.finance) (“**the Website**”) or any third party apps or websites including but not limited to the 'YieldNest Seeds Program' or any similar initiatives involving the acquisition of ‘Seeds’ (collectively referred to as "**Programs**"), the User acknowledges, understands, and agrees to the terms outlined herein. The User accepts that these Programs are designed for measuring participation and/or engagement with the educational content provided by the Website. The User further acknowledges that Seeds, as determined by YieldNest or the Website from time to time, are non-transferable, do not constitute financial instruments, and are not collateralizable as financial securities. The User acknowledges and agrees that participation in the Programs does not constitute a promise, guarantee, or obligation by YieldNest to convert ‘Seeds’ into any financial instrument and/or financial security. The User explicitly agrees that participation in these Programs and the acquisition of Seeds entail inherent risks and uncertainties, with no guarantees regarding the future value, utility, or functionality of Seeds. The User also agrees to indemnify and hold harmless YieldNest and its affiliates from any claims or liabilities arising from their participation in the Programs or misuse of Seeds. By utilizing the Website, the User indemnifies YieldNest and assumes full responsibility for complying with all applicable laws, regulations, rules, and obligations imposed by the relevant competent authorities with regard to the regulatory treatment of the Programs, Seeds and Website in the User’s respective jurisdiction(s), where the User resides, conducts business, or engages in activities related to the Website. At YieldNest, we strongly uphold the principle of personal sovereignty. Accordingly this document has been prepared solely for the purpose of providing this information to empower the User to conduct its own research and make well-informed decisions. Nothing in this document constitutes legal, financial, investment, or any other professional advice. The content herein should not be relied upon as a substitute for consultation with professional advisors. ### Accuracy and Updates While YieldNest strives to ensure that the information provided in this documentation is accurate and up to date, we make no guarantees about the completeness, reliability, or accuracy of this information. This includes, but is not limited to, information related to seeds distribution for restaking, total seeds calculation, seeds breakdown for participating in liquidity pools, individual user’s seed allocation for participating across any number of liquidity pools or any other seed related calculations. Any reliance you place on such information is strictly at your own risk. YieldNest reserves the right to make additions, deletions, or modifications to the content of this documentation and to the formulation or programming of the seeds at any time without prior notice. It is your responsibility to review the information pertaining to seeds, seeds programming and the relevant code for updates. ### Formula and Calculations The information, calculations and formulas contained in this documentation are for general informational and educational purposes only. The User understands and accepts that there may be a margin for error in the calculations and formulas based on a multitude of factors including but not limited to different software utilized for the Programs. ### Liability YieldNest, its officers, directors, employees, and agents will not be liable for any direct, indirect, incidental, special, consequential, or punitive damages arising out of your access to, use of, or reliance on this documentation and Programs. This includes, but is not limited to, any loss of profits, data, or other intangible losses related to the distribution and allocation of seeds, restaking of ETH, or participation in liquidity pools. ### Indemnification You agree to indemnify, defend, and hold harmless YieldNest from and against any claims, liabilities, damages, losses, costs, or expenses arising out of or in connection with your use of this documentation or the Programs. YieldNest shall not be liable for any errors, interruptions, disruptions, or delays, nor for any loss or damages incurred by you as a result of using this documentation and engaging with the Programs and the User uses it at their own risk. ### External Links This document and Programs may contain links to third-party websites or services that are not owned or controlled by YieldNest. YieldNest has no control over, and assumes no responsibility for, the content, privacy policies, or practices of any third-party websites or services. ### Beta Stage and Software Risks The YieldNest platform may include components or features in their beta stage, which means they are experimental. The Website, Programs and all related software, including blockchain software and smart contracts, are provided on an "as is" and "as available" basis, without warranty of any kind, either expressed or implied, including, without limitation, warranties that the platform or any related software are free of defects, vulnerabilities, merchantable, fit for a particular purpose, or non-infringing. ### Software Weaknesses Although reasonable efforts are made to ensure that the Website, Programs and related software follow high-security standards, we do not warrant or represent that the Website, Programs or any related software are secure or safe, or protected from phishing, malware, or other malicious attacks. The Website, Programs and related software may contain weaknesses, bugs, vulnerabilities, viruses, or other defects which may have a material adverse effect on the operation thereof or may lead to losses and damages for you, other users, or third parties.The User is responsible for the security of their own devices and any accounts or wallets used in connection with the Programs and Website. YieldNest is not responsible for any unauthorized access to User accounts or wallets. ### Blockchain Network Risks YieldNest interacts with various blockchain networks. Any malfunction, breakdown, or abandonment of such blockchains may have a material adverse effect on the Website and Programs. Advances in cryptography, or technical advances including but not limited to the development of quantum computing, could present risks by rendering ineffective the cryptographic consensus mechanism that underpins the blockchain. The smart contract concept, the underlying software, and software platforms, including blockchain networks, are still in an early development stage and unproven. Although unlikely, blockchains can be attacked, which may result in downtime, consensus split, long reorganization of the chain, 51 percent attack, or other adverse outcomes, each of which may lead to complete loss of your assets on such blockchain network. ### Third-Party Smart Contract Systems YieldNest may derive certain information from third-party smart contract systems, including blockchains, automated market-making (AMM) protocols, oracles, and decentralized exchange smart contract systems and related software in an automated manner, which means such information is not verified. As a result, such information may not be true, complete, timely, accurate, or sufficient. Furthermore, certain functions related to the Programs may be executed by third parties that may not act in a timely or reliable manner, or as expected or intended, or may fail to act, which can lead to inaccessibility of the functionality or partial or complete loss of your respective assets. ### Protocol Risks When interacting with the Website, you may be exposed to certain risks related to the operation and functioning of the protocols it interacts with. The protocols are complex, with many components and functional elements that are risky and experimental. You should not use or interact with any protocols unless you fully understand how they work and the consequences of transactions carried out using them. Information derived from these protocols may not be true, complete, timely, accurate, or sufficient. Certain functions within the Website and Programs may be executed by third parties that may not act in a timely or reliable manner, or as expected or intended, or may fail to act, leading to partial or complete loss of your digital assets.YieldNest does not guarantee that the Programs or any part of the Website will be available at all times or without interruption. ### Value and Volatility The prices of virtual assets, including those related to seeds, seeds distributed for staking and liquidity pools, are extremely volatile and subjective and may have no inherent or intrinsic value. Fluctuations in the price of other assets could materially and adversely affect the value of virtual assets. YieldNest does not guarantee that any virtual assets will retain their original value, as their value depends on factors outside our control. ### Strategy Risks Within the Website and Programs, you may interact with third-party strategies, which are neither controlled nor influenced by YieldNest. The strategies and actions or decisions of third-party strategists may not be profitable or advantageous for you, and you may disagree with them. YieldNest does not endorse any third-party strategies or activities of strategists, and it is your responsibility to evaluate each strategy and the respective strategist's activities. YieldNest is not liable for any acts, failures, or omissions of third-party strategists.\ Participation in any such strategy, Programs or acquisition of Seeds does not constitute an endorsement of any kind by YieldNest of the User or their activities. ### Theft Risks YieldNest makes commercially reasonable efforts to ensure transactions are secure, but there is no assurance against theft of digital assets due to hacks, cyber-attacks, distributed denial-of-service attacks, errors, double-spend attacks, flash-loan attacks, economic attacks, volatility-based attacks, third-party manipulations, vulnerabilities, or defects in the platform or related software. ### User Interface Certain user interface elements or design decisions on the Website may be confusing, resulting in the execution of unintended actions or transactions. YieldNest is not liable for any unintended actions you may make. It is at your own discretion and risk, and you are solely responsible for any possible damages or losses arising from such use. You are responsible for evaluating the information and materials provided. ### User Acknowledgment By using the YieldNest Seeds Program, you acknowledge that you have read, understood, and agree to be bound by this disclaimer. If you do not agree with any part of this disclaimer, you must refrain from using the YieldNest platform and any related activities.\ You acknowledge that if you are dissatisfied with the Programs or our Website, products, and/or services, your sole recourse is to discontinue usage of the Website and our products and/or services. # Pioneer Program ### Introducing the Pioneer Program

Join us on an exciting adventure

**The YieldNest's** [**Pioneer Program**](https://www.yieldnest.finance/pioneer) **rewards the earliest and most devoted members of its community. Pioneers enjoy a permanent 15% Seeds boost for their restaked assets.** YieldNest will offer at least two limited periods to become a Pioneer. However, the qualification requirements will become more strict with each subsequent wave. {% embed url="" fullWidth="false" %} ### **To qualify:** Wave #1 requirements * Users must restake within the first 3 weeks after launch. * The minimum restaking amount to become a pioneer is 5 ETH. * Users can activate their pioneer status by claiming and minting their Pioneer NFT during the designated period. * Wave #1 eligibility ended June 4th, 2024 23:59:59 UTC time. Exclusive PrimeStaked wave requirements * Users must convert 5+ primeETH to ynLSDe. * Users can activate their pioneer status by claiming and minting their Pioneer NFT after the eligibility period. * Eligibility period started August 28th, 2024 * Eligibility period ending on November 15, 2024 23:59:59 UTC time. Wave #2 requirements * To participate, users must maintain a minimum balance of one or more of the following assets throughout the campaign period: * 5 ynETHx * 25 ynBNBx * 0.15 ynBTCk * Eligible users can claim and mint their Pioneer NFT to activate their Pioneer status after the eligibility period ends. * Eligibility period started February 3, 2025, 0:00 UTC. * Eligibility period ends at TGE. ### **How to claim your Pioneer NFT?** At the end of each wave, you can activate your Pioneer status by claiming and minting your exclusive Pioneer NFT. #### *How to claim:* 1. Become eligible by meeting the above requirements 2. The whitelist for the claim will become available after the end of each wave 3. Claim your NFT by using the same wallet address that you used for your deposit After the end of each wave, we will take a snapshot. Everyone who meets the criteria will be able to mint their Pioneer NFT. The link to claim will be accessible via the [official Pioneers landing page](https://www.yieldnest.finance/pioneer). ### **Enjoy a 15% permanent boost on your Seeds** After claiming your NFT, the +15% boost will become visible on the Seeds page. This +15% Seed boost will start to accrue after activation of our new deterministic point system, which is based on on-chain events. ### **\[Coming Soon] Upgrade your Pioneer NFT** In the future, you will be able to upgrade your Pioneer NFT and turn it into a unique personal Pioneer NFT with specific rarities, traits, and additional bonuses. ### \[Coming Soon] **Guardians** Participate in YieldNest's growth and ecosystem. After the launch of the [YieldNest DAO](https://docs.yieldnest.finance/governance-and-tokenomics/yieldnest-dao), we will start our Guardian program. For our well-respected Guardians, we will provide many advantages within our ecosystem. Benefits, such as more voting power, the right to create proposals, special events, and much more. The exact qualification criteria for Guardians will be announced before the launch of the YieldNest DAO. Those who have a Pioneer NFT will have a streamlined process to become a Guardian. Make sure you stay up-to-date by following our channels so you don't miss out! 🌎[ Website](https://www.yieldnest.finance/)\ 💬[ Discord](https://discord.com/invite/ayAZuQgFaE)\ 📣[ Telegram](https://t.me/YieldNest) \ 🐦[ Twitter](https://twitter.com/YieldNestFi) # ynRWAx Referral Program The ynRWAx referral program rewards those who help expand the network. If you know people who’d benefit from stronger yields and exposure to RWAs, invite them in. Let’s grow the ecosystem together and earn worthwhile rewards along the way. The referral program starts on October 15th, 2025 and will end on March 31st, 2026. Referrals will be valid during this period of time or up until ynRWAx reaches $50M in TVL. #### How It Works 1. **Generate your link:** Connect your wallet to the [YieldNest App](https://app.yieldnest.finance), browse the [ynRWAx referral page](https://app.yieldnest.finance/ynrwax-referrals), and click on the “Copy Referral Link” button. 2. **Refer New Users:** Share your referral link with your friends, community, or anyone interested in earning rewards on USDC. They will need to use your referral link or code and make a USDC deposit to kickstart your rewards. 3. **Earn Rewards:** You both receive rewards! We’ll reward up to 1.5% bonus APY on your friend's deposits during the referral program, and split it equally between the two of you. 4. **Track Your Success:** Your referral dashboard gives you a transparent, real-time view of your success. Easily monitor the total amount deposited by your referrals, see how many friends have joined, view your pending rewards, and know when they will be available to claim. 5. **Rewards Distribution:** Rewards are paid in USDC. Snapshot will be taken at the end of the referral program. The airdrop will go live within 21 days after the program ends. Once available, you have 30 days to claim your rewards. After that, they will no longer be available. #### Referral APY Tiers | Tier | TVL referred | APY boost on referred TVL | | ---- | -------------- | ------------------------- | | 1 | $100 – $99,999 | 1% APY | | 2 | $100k+ | 1.5% APY | #### Additional Details * A depositor is considered your referee if your referral code or link was used when they deposited USDC into ynRWAx. * Only USDC deposits into ynRWAx are eligible for rewards. If users don’t hold any USDC, users must convert to USDC before depositing. * Only deposits above $100 USDC contributing to ynRWAx TVL are eligible. * The more you refer, the more you earn. * Eligible DeFi integrations listed on the referral page will also count towards referral rewards. * The total duration of the program is 90 days, or $50 MIL TVL is reached. * Snapshot will be taken at the end of the referral program. The airdrop will go live within 21 days after the program ends. Once available, you have 30 days to claim your rewards. After that, they will no longer be available. * Once you use a referral code, you are locked into that referee for the duration of the program. * Referrers with fraudulent or suspicious activities will be disqualified from the referral program. * The referral program can be modified, suspended, or terminated without notice. # YieldNest Risk Team **YieldNest Risk Team is an independent risk and research group operated by LlamaRisk. Our specialists have developed expertise in conducting comprehensive risk analysis for DEXs and DeFi protocols. We specialize in evaluating risk across a broad spectrum of crypto assets, including stablecoins, LSTs, RWAs, and liquid restaking and DeFi strategies.** As liquid restaking and DeFi strategies introduce new layers of complexity, risk dimensions evolve accordingly. Our role is to conduct in-depth research into direct and indirect risks, assist YieldNest in mitigating various threats, and strategically curate YieldNest-endorsed restaking and DeFi strategies. With the rapid development of new DeFi primitives and restaking integrations, innovative proofs of concept continue to emerge across categories such as sidechains, data availability layers, virtual machines, keeper networks, oracles, bridges, threshold cryptography, and trusted execution environments. Our evaluation framework addresses the technological and operational risks associated with these categories. We assess smart contract vulnerabilities, slashing risks due to code errors, de-pegging threats, rehypothecation risks, and validator failure probabilities that could impact network-wide security. Additionally, we analyze risks related to validator collusion, centralization in yield decision-making, and counterparty risks, including solvency and legal structures. This comprehensive risk assessment is critical for securing systemic resilience and ensuring the optimal deployment of YieldNest’s restaking and DeFi strategies.\ \ **Twitter:** \ **Research blog:**

YieldNest Risk Team


# Audits & Security Measures YieldNest prioritizes security at every level, partnering with top-tier crypto security firms to rigorously audit our smart contracts and mitigate potential risks. Each code release undergoes multiple layers of testing and review by both internal and external auditors to ensure reliability. For major releases, we conduct multiple audits to provide an extra layer of assurance. Currently, we are working with Zokyo, Composable Security, and ChainSecurity to uphold the highest security standards. Additionally, YieldNest runs a [bug bounty program](https://docs.yieldnest.finance/security/audits-and-security-measures/bug-bounty) with Immunefi, which will continue to expand as we release new products. We also leverage [HyperNative](https://www.hypernative.io/), an AI-driven threat detection and automated incident response system, ensuring real-time security monitoring. ### Security Measures YieldNest implements a multi-layered security approach to safeguard user funds and ensure protocol integrity: ✅ **Non-Custodial Design** – YieldNest operates on a non-custodial model, minimizing counterparty risk.\ ✅ **Continuous Auditing** – Smart contracts undergo regular audits to minimize vulnerabilities and contract risks.\ **✅ Minimized Slashing Risk** – YieldNest exclusively collaborates with thoroughly vetted professional operators under strict security conditions to reduce slashing exposure.\ **✅ Code Security** – We prioritize robust code security and encourage users to report any bugs or incidents directly via .\ **✅ Real-Time Threat Detection** – HyperNative’s AI-driven security ensures continuous threat monitoring and automated incident response. YieldNest remains committed to security, transparency, and proactive risk management, ensuring the safest possible experience for all users.

Hypernative

### Audits ### Full Code audit of the YieldNest Protocol 15-04-2024 Full system with a focus on ynETH & ynLSD. {% file src="/files/tN4ZpgFl34ajMGdRnXDZ" %} [Chain Security](https://chainsecurity.com/) Audit {% endfile %} ### Review of EigenLayer updates 07-05-2024 Full system review with a focus on EigenLayer updates. {% file src="/files/dWei5aFIJ3A0NYZ7tolw" %} [Zokyo](https://www.zokyo.io/) Audit {% endfile %} ### ynETH/ynLSDe 09-08-2024 Audited by [Chain Security](https://chainsecurity.com/). {% file src="/files/sncGtysdkjzk29APcatr" %} ### MAX LRT review 12-12-2024 Audited by [Zokyo](https://zokyo.io/). {% file src="/files/5C1M5r3qCpHeMeIj86gF" %} ### ynBTCk strategy review 08-01-2025 Audited by [Zokyo](https://zokyo.io/). {% file src="/files/3QrXWVrC1j4WgmGUtGUx" %} ### MAX LRT, ynBTCk & ynBNBx review 09-01-2025 Audited by [Composable Security](https://composable-security.com/). {% file src="/files/XXkGR7P9lUA8Fq1jljMb" %} ### ynETH & ynLSDe upgrade for EigenLayer slashing 04-02-2025 Audited by [Zokyo](https://zokyo.io/). {% file src="/files/dZHOe9Icu0Q22jz6EqwK" %} ### *YieldNest Max Vault Withdrawer and Lib Logic Audit Report 13-02-2025* Audited by NFR Audits. {% file src="/files/lwNRJif8jA47KMMzw074" %} ### *YieldNest Default Asset Index Audit Report 12-05-2025* Audited by NFR Audits. {% file src="/files/3QfOT78AVSwNbDhSYGgM" %} ### *YieldNest clisBNB Strategy Audit Report 17-05-2025* Audited by NFR Audits. {% file src="/files/ouN2IVnsJb4c5rbrOPOm" %} ### *YieldNest ynETH Slashing Upgrade 28-04-2025* {% file src="/files/bAPxXSd5yU1QmAORWvxU" %} ### *YieldNest ynLSDe Slashing Upgrade 28-04-2025* {% file src="/files/uPyzIW3HzhDfVIWIDE40" %} ### *YieldNest Flex Strategy Audit 07-2025* {% file src="/files/R0Qpf5PDbFLTA0AM9liq" %} ### YieldNest MetaHook Audit 09-2025 {% file src="/files/WNtO898Piyo5oT7jc5b0" %} ### YieldNest Performance fees 09-2025 {% file src="/files/caYbLAINWDTQPXMQ3qqc" %} ### YieldNest Hooks Audit 09-2025 {% file src="/files/vQv1NTNLlAzpg9J9Z2Oi" %} # Bug Bounty YieldNest offers rewards for reporting low-to-critical vulnerabilities on all levels of its technology stack, from smart contracts to websites and applications. Immunefi is an official bug bounty partner with YieldNest. We value and respect white hat hackers and always strive to maintain an open and rewarding dialogue if bugs are found. Our bug bounty program is monitored 24/7. Please send any bug reports using the link below. * [https://immunefi.com/bug-bounty/yieldnest](https://immunefi.com/bug-bounty/yieldnest/) # Deployment Addresses This documentation section offers a comprehensive overview of all deployed contracts. We strive to maintain the accuracy and completeness of these addresses, but **please be aware that there may be instances where the information becomes outdated**. {% hint style="info" %} System audits and technical specifications\ [**Audits**](https://docs.yieldnest.finance/security/audits)\ \ **Mainnet app URL:** [**https://app.yieldnest.finance/**](https://app.yieldnest.finance/) {% endhint %} ### YND
ChainAddress
ETH L10x7159cc276D7d17Ab4b3bEb19959E1F39368a45Ba
optimism0xDB8E54f39aff243B25A41e4747957eD517aF0511
arbitrum0xDB8E54f39aff243B25A41e4747957eD517aF0511
binance0xDB8E54f39aff243B25A41e4747957eD517aF0511
ink0xDB8E54f39aff243B25A41e4747957eD517aF0511
berachain0xDB8E54f39aff243B25A41e4747957eD517aF0511
base0xDB8E54f39aff243B25A41e4747957eD517aF0511
## Max Vaults ### ynETHx
ChainAddress
ethereum0x657d9ABA1DBb59e53f9F3eCAA878447dCfC96dCb
optimism0xE231DB5F348d709239Ef1741EA30961B3B635a61
taiko0xE231DB5F348d709239Ef1741EA30961B3B635a61
fraxtal0xE231DB5F348d709239Ef1741EA30961B3B635a61
arbitrum0xE231DB5F348d709239Ef1741EA30961B3B635a61
mantle0xE231DB5F348d709239Ef1741EA30961B3B635a61
scroll0xE231DB5F348d709239Ef1741EA30961B3B635a61
binance0xE231DB5F348d709239Ef1741EA30961B3B635a61
berachain0xE231DB5F348d709239Ef1741EA30961B3B635a61
blast0xE231DB5F348d709239Ef1741EA30961B3B635a61
base0xE231DB5F348d709239Ef1741EA30961B3B635a61
ink0x0ce01De4e7C4Dc6531f251ee6A64A4D449bc1576
### ynBNBx ([BNB Chain](https://bscscan.com/address/0x32C830f5c34122C6afB8aE87ABA541B7900a2C5F))
Contract TypeAddress
ynBNBx Token0x32C830f5c34122C6afB8aE87ABA541B7900a2C5F
### ynUSDx ([Ethereum](https://etherscan.io/token/0x3db228fe836d99ccb25ec4dfdc80ed6d2cddcb4b))
Contract TypeAddress
ynUSDx Token0x3DB228FE836D99Ccb25Ec4dfdC80ED6d2CDdCB4b
### ynRWAx ([Ethereum](https://etherscan.io/token/0x01ba69727e2860b37bc1a2bd56999c1afb4c15d8))
Contract TypeAddress
ynRWAx Token0x01Ba69727E2860b37bc1a2bd56999c1aFb4C15D8
## nLRTs and LRTs ### ynETH ([Ethereum](https://etherscan.io/address/0x09db87A538BD693E9d08544577d5cCfAA6373A48))
Contract TypeAddress
ynETH Token0x09db87A538BD693E9d08544577d5cCfAA6373A48
StakingNodesManager0x8C33A1d6d062dB7b51f79702355771d44359cD7d
RewardsDistributor0x40d5FF3E218f54f4982661a0464a298Cf6652351
ExecutionLayerReceiver0x1D6b2a11FFEa5F9a8Ed85A02581910b3d695C12b
ConsensusLayerReceiver0xE439fe4563F7666FCd7405BEC24aE7B0d226536e
### ynLSDe ([Ethereum](https://etherscan.io/address/0x35Ec69A77B79c255e5d47D5A3BdbEFEfE342630c))
Contract TypeAddress
ynLSDe Token0x35Ec69A77B79c255e5d47D5A3BdbEFEfE342630c
### ynBNB ([BNB Chain](https://bscscan.com/address/0x304B5845b9114182ECb4495Be4C91a273b74B509))
Contract TypeAddress
ynBNB Token0x304B5845b9114182ECb4495Be4C91a273b74B509
### ynBTCk
ChainAddress
BNB L10x78839cE14a8213779128Ee4da6D75E1326606A56
ethereum0x68589adc7687A23Ff2B06fb032b997f09B44Ed5d
optimism0x68589adc7687A23Ff2B06fb032b997f09B44Ed5d
taiko0x68589adc7687A23Ff2B06fb032b997f09B44Ed5d
arbitrum0x68589adc7687A23Ff2B06fb032b997f09B44Ed5d
hemi0x68589adc7687A23Ff2B06fb032b997f09B44Ed5d
base0x68589adc7687A23Ff2B06fb032b997f09B44Ed5d
## Testnet Addresses ### Holeksy Contract Addresses ([Testnet](https://holesky.yieldnest.finance/))
Contract TypeAddress
ynETH Token0xd9029669BC74878BCB5BE58c259ed0A277C5c16E
StakingNodesManager0xc2387EBb4Ea66627E3543a771e260Bd84218d6a1
RewardsDistributor0x82915efF62af9FCC0d0735b8681959e069E3f2D8
ExecutionLayerReceiver0xA5E9E1ceb4cC1854d0e186a9B3E67158b84AD072
ConsensusLayerReceiver0x706EED02702fFE9CBefD6A65E63f3C2b59B7eF2d
# Roles ## Ethereum Mainnet
RoleDescriptionImpactMultisig
PROXY_ADMIN_OWNERThis address can upgrade any contract in the system.CriticalYNSecurityCouncil
DEFAULT_ADMIN_ROLEThis address can add to and revoke addresses from any role in the system.CriticalYNSecurityCouncil

STAKING_ADMIN


This address can register and upgrade the implementation of StakingNode and set maxNodeCount.CriticalYNSecurityCouncil
STAKING_NODES_DELEGATORCan Delegate and Undelegate to operators.MediumYNDelegator
REWARDS_ADMINSets the Fee Receiver and the Fee Basis points in RewardsDistributor.HighYNSecurityCouncil
PAUSER_ROLECan pause deposits on ynETH/ynLSD, registerValidatorsMediumYNDev
YNIncidentResponder
UNPAUSER_ROLECan unpause what PAUSER pauses + unpause token transfers add/remove to whitelist for token transfer whitelistHighYNSecurityCouncil
FEE_RECEIVERInterim protocol revenue collector until YND is released and distribution is automated.HighYNSecurityCouncil
VALIDATOR_MANAGERRegisters validators in the system.CriticalYNValidatorService
STAKING_NODES_OPERATOROperates verification of withdrawal credentials, sweeping rewards etc.MediumYNOperator
YNDev
STAKING_NODE_CREATORCan call createStakingNode.LowYnDev
\

### Ethereum Mainnet Multisigs
NameCodeN/MEthereum Mainnet Safe Contract Address

YieldNest Security Council

Contract Upgrades, role admin.

YNSecurityCouncil3/5

0xfcad670592a3b24869C0b51a6c6FDED4F95D6975


YieldNest Validator Service

Off-chain process		YNValidatorService2/3

0x8e20eAf121154B69B7b880FA6c617c0175c4dE2e


YieldNest Delegator


Delegates the EigenPods to the operators

YNDelegator2/3

0xDF51B7843817F76220C0970eF58Ba726630028eF


YieldNest Dev


Pause the system, fast incident response, low criticality actions.


YnDev2/30xa08F39d30dc865CC11a49b6e5cBd27630D6141C3
### BNB Mainnet Multisigs
NameCodeN/MEthereum Mainnet Safe Contract Address

YieldNest Security Council

Contract Upgrades, role admin.

YNSecurityCouncil3/5

0x721688652DEa9Cabec70BD99411EAEAB9485d436


YieldNest Dev


Pause the system, fast incident response, low criticality actions.


YnDev2/30x7B4B43f00cf80AABda8F72d61b129F1e7F86fCaF
# How to Restake #### **How to Restake with YieldNest** Restaking with YieldNest is designed to be seamless, allowing users to optimize their yield by participating in restaking strategies within MAX LRTs. By depositing assets such as ETH, BTC, BNB, or stablecoins into their respective MAX LRTs, users gain exposure to multiple underlying LRT Strategies without the need for manual allocation. YieldNest automates the entire process, dynamically reallocating assets across DeFi and restaking strategies while ensuring Layer 1 settlement guarantees. This approach maximizes capital efficiency and yield optimization while maintaining security through real-time risk management. **Steps to Restake** 1. **Deposit** your assets (e.g., ETH, BTC, or BNB) into the respective MAX LRT. 2. **Receive** MAX LRT share tokens (e.g., ynETHx, ynBTCx, ynBNBx) representing your proportional stake. 3. **Earn** continuous, auto-compounded rewards from staking, DeFi strategies, and additional incentives such as airdrops. 4. **Withdraw or Redeem** your assets anytime by unstaking your MAX LRT holdings. For a step-by-step walkthrough, watch our detailed **video guide**:\ ▶️ [How to Restake with YieldNest](https://www.youtube.com/watch?v=dSgip7PVBqk\&t=335s\&ab_channel=YieldNest) For more details on our mainnet launch and how to participate, read our **official article**:\ 🔗 [Official YieldNest Launch & ynETHx on Mainnet](https://medium.com/@yieldnest/official-yieldnest-launches-yneth-on-mainnet-02d489376e79) # Gauge Proposals How to create a gauge proposal with YieldNest This guide is designed for partners and community members who wish to propose new gauges on[ dao.yieldnest.finance](https://dao.yieldnest.finance/). It explains: 1. Why gauges matter – the tokenomics benefits for you and for YieldNest. 2. How to participate – the step-by-step process to submit and activate a gauge proposal. 3. Where to find templates – links to ready-to-use proposal formats.\
### 1. Why Gauges Matter #### What is a Gauge? A gauge is a smart contract that distributes YND emissions to a specific pool, vault, or strategy. veYND and sdYND-gauge token holders vote on gauges every 2 weeks. Voting periods last 7 days. The results of the gauge votes determine where emissions go for the following Epoch, ensuring incentives are community-driven. #### Why Propose a Gauge? * Boost Liquidity: Direct emissions to your DeFi opportunity to attract liquidity. * Attract Users: More rewards = higher APR → more participants. * Strengthen Integration: Position your protocol as part of the YieldNest ecosystem. #### Tokenomics Flywheel Liquidity → more rewards → stronger utility → more participants. Gauges are the mechanism that powers this cycle. ### 2. How to Propose a Gauge on YieldNest DAO #### Step 1: Preparation * Identify the pool or opportunity you want to incentivize with YND (e.g., ynETHx-ETH, ynBNBx-BNB). * Ensure it passes security checks (audits, reliable contracts). * Prepare key details: addresses, tokens, expected benefits. #### Step 2: Forum Proposal * Post your proposal on[ gov.yieldnest.finance](https://gov.yieldnest.finance/). * Use the ready-made forum template provided in the post creation. * Fill in the template accurately and completely to help the community understand the opportunity. #### Step 3: Governance Vote * The community will share their opinions on the proposal and informally vote in the forum to show interest. * If there is enough interest, a core DAO member will create an official DAO proposal in Snapshot where veYND holders and sdYND-holders can officially vote on the proposal. * Proposals will be available for voting at: * veYND/sdYND-gauge holders vote Yes / No / Abstain. * If passed, the gauge is approved. #### Step 4: Activation * A core DAO member will create a gauge that is approved after a DAO vote. * Once the Gauge is deployed in the DAO, it will be available for voting the following epoch. #### Step 5: Incentivization & Growth * Market your gauge to the community to attract votes and liquidity to your opportunity. * Track performance (TVL, APR, votes) and adjust as needed.
# Key Terms ### YieldNest Key Terms **MAX LRTs** MAX LRTs are AI-driven, composable restaking assets that unify multiple yield sources into a single, capital-efficient token. These assets dynamically rebalance funds across multiple LRT Strategies, optimizing risk-adjusted returns while maintaining Layer 1 settlement assurances. They serve as the top-level vaults, allocating capital across underlying LRT Strategies for optimal performance. **LRT Strategies** LRT Strategies are the underlying yield-generating mechanisms powering MAX LRTs. While MAX LRTs aggregate multiple strategies, some LRT Strategies can be accessed in isolation via a public interface, giving advanced users direct exposure to a specific yield model. * Better Risk Management: MAX LRTs allocate funds dynamically, allowing for tailored risk-adjusted strategies. * Isolated Exposure: Some LRT Strategies offer standalone access for users seeking exposure to specific opportunities. * Fee Structure: Fees are only charged at the strategy level, ensuring MAX LRTs remain fee-free. *** ### **Restaking & Shared Security Protocol Terms** **Curated RA Baskets** A dynamically curated basket that provides balanced exposure to pre-selected Isolated RA Categories. These baskets ensure diversification across multiple restake applications (RAs) by selecting specialized node operators for optimized security and yield. **Isolated RA Categories** A focused approach to RA restaking, where node operators only validate specific RAs, maximizing potential rewards while mitigating risk. The YieldNest Strategy Manager, governed by the YieldNest DAO, ensures optimal allocation within these isolated restaking strategies. **Restake Application (RA)** Any system that requires distributed validation and pooled cryptoeconomic security, including: * Sidechains * Data availability layers * New virtual machines * Keeper networks * Oracle networks * Bridges * Threshold cryptography schemes * Trusted execution environments **RA Developer** A development team that builds and maintains an RA service. **Cryptoeconomic Security** A security model that leverages economic incentives and cryptographic verification to ensure network integrity and proper function. **Delegation in Shared Security Protocols** Restakers delegate their assets to third-party operators, who run off-chain service modules instead of operating software themselves. **Operator** Entities that register in a shared security protocol, secure restaked assets, and validate RAs. Operators can accept delegated stakes and opt into specific RA services. **Restaking** A mechanism where Ethereum stakers reuse their staked ETH or LSTs to provide additional security to RAs. Stakers delegate capital to Operators in exchange for restaking rewards. **LST Restaking** A restaking method where LST holders transfer their Liquid Staking Tokens (LSTs) into a shared security protocol. **Native Restaking** A restaking approach where Ethereum stakers natively restake ETH by redirecting withdrawal credentials to a shared security protocol. **On-Chain Slashing Contract** A contract that enforces penalties on operators for misbehavior, maintaining RA integrity. **Pooled Security via Restaking** A security model where multiple parties combine restaked ETH/LSTs to provide modular security to multiple RAs. **Quorum & Quorum Threshold** * **Quorum**: A grouping of strategies used by an RA for security enforcement. * **Quorum Threshold**: The minimum stake percentage and operator responses required to maintain quorum security. **Restaker** An individual who restakes native ETH or LSTs into a shared security protocol. **Restaking Points** A metric used to measure restaking contributions, calculated in ETH per second. **Stake** The ETH amount delegated to the current set of Operators. *** ### **Security & Risk Management in MAX LRTs** **Guard Validation Engine** The Guard Validation Engine secures MAX LRT transactions by: * Enforcing whitelist-based rule execution to prevent unauthorized actions. * Identifying risks in real time using AI-driven monitoring. * Ensuring strict access control, customizable validation logic, and fail-safe transaction processing. **HyperNative Threat Detection** MAX LRTs integrate HyperNative's security monitoring, which: * Detects protocol risks, threats, and anomalies in real time. * Triggers automated mitigation mechanisms before threats materialize. * Ensures continuous security optimization across all active strategies. **Automated Rebalancing & Exit Liquidity** * Dynamic asset reallocation optimizes capital efficiency. * On-chain liquidity buffers ensure frictionless exits, even in volatile conditions. * Automated incident response ejects at-risk assets from compromised strategies. *** ### **YieldNest Product & Governance Terms** **YieldNest DAO** The governing entity responsible for allocating funds, managing strategies, and evolving MAX LRTs over time. As governance decentralizes, each MAX LRT will transition into a SubDAO, allowing for independent strategy management. **SubDAO** A governance entity that manages a specific MAX LRT, enabling: * Independent parameter adjustments based on market conditions. * Strategic risk assessments and integrations. * AI-assisted voting mechanisms for governance. **YieldNest Strategy Manager** A modular framework that dynamically optimizes capital deployment across: * Restaking strategies * DeFi integrations * Liquidity provisioning models **Buffer Strategy** An ERC-4626-compliant liquidity reserve ensuring: * Instant access to liquidity for withdrawals * Efficient capital deployment across DeFi & restaking *** ### **Withdrawals in Shared Security Protocols** * **Full Withdrawals**: Withdraw 32 ETH principal + staking rewards. * **Partial Withdrawals**: Withdraw staking rewards only, maintaining principal in restaking. # Logo & Styleguide ## 👉👉 [*V3.0 Feb 2025 Google Drive*](https://drive.google.com/drive/folders/1Sy1dPJHk4_CchkJZGK5FMg5k3e2S0Ndr) 👈👈 **Brand Style Guidelines and Assets** ### Logo mark PNG
### Logo mark PNG transparent
### **YieldNest Logo transparent BG**
### **YieldNest Logo with White BG**
### **YieldNest Logo with BG**
### YieldNest Profile Pics
### Favicons
### Logos SVG
### Token Logos SVG
### MAX LRTs Token Logos SVG
### **YieldNest Brand Style Guidelines & Assets** {% file src="/files/gWjeR4tpKV44uQ13jNGm" %} **YieldNest Brand Book** {% endfile %} # What is YieldNest? YieldNest is a next-generation DeFi protocol that offers simple, high-yielding, risk-adjusted yield and DeFi strategies. It merges DeFi's best strategies into single, unified, high-powered assets with L1 settlement assurances. **Mission** To simplify DeFi for all users. We do this by delivering secure, high-yield strategies through easy-to-use AI-powered products, robust security, and continuous innovation. **Vision** Our vision is to create a user-friendly protocol that anyone can access. Providing high-yielding DeFi assets in a non-custodial, risk-adjusted manner to retail and institutional users alike. By offering single, unified assets with exposure to multiple protocols and chains simultaneously, we remove complexity and unlock DeFi's true potential for everyone. We prioritize simplicity, transparency, risk-adjusted, high yields, and security, enabling more people to benefit from decentralized finance in a fully self-sovereign way. **Join us on the journey toward a more inclusive and rewarding DeFi future.** 🌐 [Website](https://www.yieldnest.finance/) 📱 [YieldNest App](https://app.yieldnest.finance/) 💬 [Discord](https://discord.gg/ayAZuQgFaE) 🐦 [Twitter](https://twitter.com/YieldNestFi) 📢 [Telegram](https://t.me/YieldNest) 📖 [Github](https://github.com/orgs/yieldnest) # What is YieldNest? YieldNest is a next-generation DeFi protocol that offers simple, high-yielding, risk-adjusted yield and DeFi strategies. It merges DeFi's best strategies into single, unified, high-powered assets with L1 settlement assurances. **Mission** To simplify DeFi for all users. We do this by delivering secure, high-yield strategies through easy-to-use AI-powered products, robust security, and continuous innovation. **Vision** Our vision is to create a user-friendly protocol that anyone can access. Providing high-yielding DeFi assets in a non-custodial, risk-adjusted manner to retail and institutional users alike. By offering single, unified assets with exposure to multiple protocols and chains simultaneously, we remove complexity and unlock DeFi's true potential for everyone. We prioritize simplicity, transparency, risk-adjusted, high yields, and security, enabling more people to benefit from decentralized finance in a fully self-sovereign way. **Join us on the journey toward a more inclusive and rewarding DeFi future.** 🌐 [Website](https://www.yieldnest.finance/) 📱 [YieldNest App](https://app.yieldnest.finance/) 💬 [Discord](https://discord.gg/ayAZuQgFaE) 🐦 [Twitter](https://twitter.com/YieldNestFi) 📢 [Telegram](https://t.me/YieldNest) 📖 [Github](https://github.com/orgs/yieldnest) # Next-gen DeFi Strategies ## The Original Vision of Yield Optimization Yield optimization was initially conceived as a mechanism to enhance blockchain security by enabling the reuse of staked assets across multiple applications. Early protocols pioneered this concept, extending cryptoeconomic security beyond individual chains. This innovation allowed validators to deposit their assets, providing additional security assurances while earning extra rewards. The fundamental goal was to reinforce network security without requiring fresh capital inflows. ## Beyond Shared Security: The Expanded Role of Yield Optimization While yield optimization has successfully strengthened network security, its potential reaches far beyond its original use case. Traditional models focus primarily on validator-based security, often limiting capital efficiency. However, yield optimization can be leveraged to unlock liquidity, optimize yield, and enhance capital allocation across DeFi. By redeploying staked assets into multiple yield-bearing strategies, yield optimization evolves into an active tool for maximizing returns while maintaining security guarantees. ## YieldNest's Approach: Yield Optimization as a Capital Efficiency Engine YieldNest builds on this foundation with MAX LRTs — composable, AI-driven yield optimization strategies. These strategies dynamically optimize risk, auto-compound returns, and improve liquidity efficiency across multiple protocols and chains. This transforms yield optimization from a passive security function into an active capital management framework, enabling intelligent capital reallocation for sustained, risk-adjusted returns. ## The Future of Yield Optimization in DeFi Yield optimization is evolving into a multi-purpose financial instrument, balancing security and yield generation. YieldNest envisions a DeFi landscape where deposited assets are actively utilized for liquidity provisioning, lending, and automated portfolio management. By integrating AI-driven strategy execution with composable yield optimization, MAX LRTs ensure sustainable capital efficiency while preserving Layer 1 settlement assurances. As DeFi matures, yield optimization will transcend its security-first role, becoming a cornerstone of high-yield, automated DeFi infrastructure — a transformation spearheaded by YieldNest's structured and scalable solutions. ## Further Reading on Yield Optimization in DeFi For an in-depth understanding of what this truly means and how YieldNest envisions it, we recommend exploring our collaborative research with Llama Risk: 🔗 [Beyond Shared Security: The Evolving Role of Yield Optimization in DeFi](https://www.llamarisk.com/research/restaking-in-defi) Additionally, we've conducted a comprehensive assessment of YieldNest MAX LRTs, detailing how our protocol implements its mission and vision: 🔗 [YieldNest General Protocol Assessment](https://www.llamarisk.com/research/yieldnest-general-assessment) # YieldNest Protocol Overview YieldNest is a next-generation DeFi protocol that consolidates yield strategies into a single liquid asset. At its core, YieldNest introduces MAX LRTs, designed to optimize risk-adjusted returns by dynamically balancing between DeFi yield strategies. The protocol’s modular architecture, built entirely in-house, ensures seamless integration, robust security, and adaptability as DeFi continues to evolve. YieldNest is currently focused on six MAX products, each targeting a major asset category: * \*\*ynETH MAX (ynETHx): \*\* ETH-based strategies * **ynBTC MAX (ynBTCx):** BTC-based strategies * \*\*ynUSD MAX (ynUSDx): \*\* USD-based strategies * \*\*ynBNB MAX (ynBNBx): \*\* BNB-based strategies * **ynRWA MAX (ynRWAx):** RWA-based strategies * **STAK:** Curve LP + StakeDAO gauge strategies *Additional MAX LRTs can be introduced in the future, subject to governance decisions by the YieldNest DAO.* Each MAX LRT consists of multiple underlying LRT strategies, offering both diversified and isolated exposure to specific yield sources. We've conducted a comprehensive assessment of YieldNest MAX LRTs, detailing how our protocol implements its mission and vision: 🔗 [YieldNest General Protocol Assessment](https://www.llamarisk.com/research/yieldnest-general-assessment) ## Core Principles of MAX LRTs MAX LRTs are built around three fundamental principles: 1. **Highest Risk-Adjusted Returns** * Strategies prioritize sustainability, resilience, and yield optimization, adapting to changing market conditions. 2. **Security & Flexibility** * 24/7 monitoring by **HyperNative's** threat detection and incident response systems ensures real-time risk mitigation, backed by a **swarm of AI agents** that continuously feed data and learn. * Proactive threat prevention allows assets to be ejected back to their base asset before any principal loss or yield disruption. * Audited by top-tier security firms and backed by an independent risk team. 3. Inn **ovation in Capital Efficiency** * YieldNest maximizes asset productivity while maintaining risk-conscious capital deployment. * AI-driven parameter tuning and strategic reallocation optimize liquidity utilization. For those seeking a deeper understanding of YieldNest MAX LRTs, we have conducted a comprehensive protocol assessment outlining its mechanics and innovations: # MAX Vaults ## What are MAX LRTs? MAX LRTs are AI-driven, composable yield optimization tokens that unify multiple yield sources and strategies into highly efficient assets. These tokens simplify DeFi by abstracting complexity, allowing users to access risk-adjusted, auto-compounded returns without actively managing allocations. * Automatic rebalancing to optimize capital allocation across strategies. * Curated strategies selected based on risk-adjusted returns. * Continuous improvements through monitoring and strategy adjustments. Think of MAX LRTs as an evolving, intelligent DeFi engine constantly analyzing data, discovering new strategies, and optimizing capital deployment. As more data is fed into the system, it learns, adapts, and improves, refining its strategies over time. New strategies are initially introduced as external integrations, rigorously tested, and monitored. Once a strategy matures and demonstrates long-term safety and efficiency, it can be enshrined within the MAX LRT, operating under the governance and oversight of the specific MAX LRT subDAO. The flexible, modular architecture of MAX LRTs allows strategies to sync back to their main settlement layer seamlessly. For example, ynETH MAX (ynETHx), an ETH-based strategy, settles on Ethereum L1 but can deploy and integrate strategies across Ethereum L2s or any chain capable of propagating trustless data back to the MAX LRT. The true elegance of MAX LRTs lies in their self-expanding nature. As the system autonomously integrates new strategies, it continuously evolves. Over time, this hybrid model combining AI automation with governance oversight could lead to a future where MAX LRTs operate fully autonomously, redefining yield optimization at the highest level. See the illustration below for a visual representation of how MAX LRTs are positioned to become the Apex of Yield Optimization. ## L1 Settlement & Why It Matters In traditional finance, fund administrators have the luxury of time to reconcile net asset values (NAVs), settle trades, and consolidate accounting records within predefined timeframes. However, in DeFi, where markets operate 24/7, with constant price fluctuations, instant liquidity movements, and automated execution, settlement mechanisms must function in real-time to maintain cohesion, accuracy, and transparency. MAX LRTs serve as the "glue" that holds everything together—ensuring that all underlying strategies, asset states, and accounting records remain synchronized, verifiable, and continuously updated across their respective base chains. Without this real-time settlement layer, fragmented data and asynchronous state updates could introduce inefficiencies, inconsistencies, or security vulnerabilities. MAX LRTs address this by providing a unified framework that consolidates all positions, tracks NAV in real-time, and ensures seamless accounting across multiple integrated DeFi strategies. By leveraging AI-driven optimization, automated rebalancing, and L1 settlement guarantees, MAX LRTs maintain structural integrity, acting as the backbone for risk-adjusted, automated capital deployment in an always-on DeFi environment. ## MAX LRT Architecture Each MAX LRT follows a unique strategy composition and management framework. The base configuration of every MAX LRT is defined by: * **Price Asset:** The asset in which the MAX LRT is denominated *(e.g. ETH).* * \*\*Primary Underlying Asset: \*\* The core yield-generating asset *(e.g. WETH)* . * **Accounting Layer:** The Layer 1 settlement chain *(e.g. Ethereum L1)* . * \*\*Other Underlying Assets: \*\* Additional assets integrated for yield optimization. Additionally, we've conducted a comprehensive assessment of YieldNest MAX LRTs, detailing how our protocol implements its mission and vision: 🔗 [YieldNest General Protocol Assessment](https://www.llamarisk.com/research/yieldnest-general-assessment) For example, in the case of ynETHx, users deposit underlying assets and receive ynETHx share tokens denominated in ETH. MAX LRTs are built for composability, enabling seamless tracking and accounting of all underlying strategies within a single liquid token while maintaining L1 settlement assurances. Internal modules like the RateProvider ensure accurate pricing and conversions, while a Coprocessor manages asset allocation, strategy execution, and accounting. This system is the foundational infrastructure enabling MAX LRTs to support multichain strategies seamlessly, optimizing capital efficiency across diverse DeFi ecosystems. The Buffer Strategy is an ERC-4626-compliant mechanism designed to provide immediate liquidity for withdrawals. It ensures that a portion of the MAX LRT’s underlying assets remains in readily accessible, yield-generating strategies, allowing users to redeem their MAX LRT positions without delays. Effectively, the Buffer Strategy functions as a liquidity reserve, balancing capital deployment efficiency with the need for rapid, frictionless redemptions. To maintain stability, any stress on the buffer will be mitigated through liquidity pools or queue systems, where participants can benefit from withdrawal flows. This ensures sustainable liquidity management while reinforcing MAX LRTs’ ability to maintain deep liquidity, even under volatile market conditions. When the buffer runs low, assets from other strategies are removed to refill the buffer. This can take anywhere from 1 - 10 days from the time the refill is initiated. If you are in a hurry to unstake you can swap ynETHx on our swap page or your favorite swap router. ## **MAX LRT Withdrawal Flow** All YieldNest MAX LRT tokens (e.g., ynETHx, ynBNBx, ynUSDx, ynBTCx) share a universal withdrawal mechanism that utilizes a dedicated withdrawal buffer to ensure liquidity. Each MAX LRT keeps a portion of its assets readily available either in the base asset vault or deployed to a liquid strategy (e.g., lending markets) so that, under normal conditions, users can withdraw instantly. Withdrawals from the buffer are processed on a first-come, first-served basis until the buffer is fully depleted. If many users withdraw at once, the buffer may become exhausted. In such cases, further withdrawals must wait until the buffer is replenished, as the protocol rebalances assets from yield strategies back into the buffer to restore liquidity. ### **Upcoming Improvements** **Dynamic Withdrawal Fees** A variable fee that increases as the buffer depletes. The fee increases more sharply only when the buffer is nearly empty. This ensures that withdrawals are always possible, but discourages opportunistic or large withdrawals during periods of low liquidity. **Withdrawal Queue (0% Fee Option)** A first-in, first-out (FIFO) queue that users can join to withdraw without paying a fee if they’re willing to wait. When the buffer is empty or a user opts for a fee-free exit, their request enters the queue and is processed once the buffer is refilled. This withdrawal flow strikes a balance between capital efficiency and liquidity availability. Most assets remain invested to generate yield, while a portion is reserved for redemptions. Users have flexibility: * Exit immediately with a dynamic fee, or * Wait in the queue for a fee-free withdrawal. This system is designed to maintain deep liquidity, protect token value, and ensure robust performance even during periods of stress. ## Composability & Governance The YieldNest DAO retains full flexibility to add or remove strategies and MAX LRTs as the ecosystem evolves. Each MAX LRT is designed to transition into its own SubDAO, maintaining independent governance and strategy execution. This structure ensures a focused, efficient, and low-risk framework while maximizing utility and capital efficiency. There are no predefined strategy limitations for any MAX LRT. Each SubDAO has full autonomy to explore and integrate new strategies, prioritizing AI-enhanced, risk-adjusted returns. Autonomous AI agents will continuously optimize yield optimization allocations, rebalance DeFi exposure, and dynamically adjust parameters based on real-time market conditions and risk assessments. Initially, MAX LRTs will operate as structured products within the YieldNest ecosystem. Over time, governance will decentralize, with each SubDAO managing its respective MAX LRT independently, leveraging AI-driven governance support for strategic decision-making. This modular governance model ensures that MAX LRTs remain dynamic, adaptable, and aligned with market conditions, enabling: ✅ Independent governance for each MAX LRT, ensuring strategic autonomy. ✅ Parameter adjustments driven by market dynamics and risk assessments. ✅ AI-enhanced voting mechanisms to facilitate data-driven decision-making. By progressively shifting governance to SubDAOs, YieldNest ensures that MAX LRTs remain scalable, resilient, and optimized for long-term growth in the DeFi ecosystem. ## Integrating New Strategies into MAX LRTs YieldNest’s vaults are built with a **modular architecture** , so new yield strategies can be plugged in without upgrading the core vault contract. To add a strategy, a developer first writes and deploys the strategy contract (following the required interface/standards), then submits a proposal to the YieldNest DAO detailing the strategy’s design, security review, and expected returns. * **Governance Review & Timelock:** The community reviews and votes on the strategy proposal. If approved, the integration is executed through the on-chain timelock. This means the approved actions (adding the strategy) are queued and delayed by a timelock contract, giving the community time to inspect the change. In practice this delay reinforces security and transparency – all vault modifications (including adding strategies or changing rules) are subject to the timelock. * **Whitelisting & Guard Enforcement:** Once the timelock period ends, governance executes the transaction that formally integrates the strategy. This typically involves adding the new strategy’s address to the MAX vault and updating the **Transaction Guard** rules. The Guard (a validation engine) enforces a strict whitelist-based rule set. In other words, it only allows pre-approved calls to the new strategy contract (for example, functions to deposit or withdraw funds). Any disallowed or unexpected actions will be rejected, ensuring the vault only interacts with the strategy in the intended way. * **Funding & Activation:** After whitelisting, the vault (or its manager) can deposit assets into the strategy. Funds are transferred on-chain into the new strategy contract, and it begins generating yield under the vault’s management. Because the vault is modular, there is **no need to upgrade the base vault contract** – the new strategy simply joins as an additional module. This means the core vault logic and token remain unchanged, even as new strategies come online. Throughout this process, every step is on-chain and fully auditable. Users can verify contract deployments, proposal votes, timelock executions, and funding transactions on-chain. For example, one can inspect the MAX LRT’s vault address and asset allocations via blockchain explorers or portfolio trackers (see, for instance, the ynETHx vault’s DeBank profile for a live view of its holdings and flows: ). In summary, integrating a new strategy is a **modular, governance-controlled process** secured by YieldNest’s Guard engine and timelock that keeps the MAX vault safe while transparently expanding its yield opportunities # ynETH MAX - ynETHx **ynETHx is a MAX LRT designed to maximize returns on ETH and LSD-based assets by integrating yield and DeFi strategies into a single, capital-efficient, composable token. While yield optimization serves as a core primitive, ynETHx extends beyond traditional staking models, dynamically reallocating capital across yield-generating opportunities to unlock DeFi’s full potential.** The primary objective of ynETHx is to capture staking rewards and continuously optimize capital efficiency through modular strategy execution, AI-driven risk management, and real-time liquidity adjustments. By leveraging an evolving ecosystem of financial primitives, ynETHx ensures sustainable, high-yielding, and composable DeFi exposure while maintaining Layer 1 settlement assurances. Yields are targeted within a 10–15% risk-adjusted APY range but can fluctuate above or below this range based on market conditions, strategy performance, and DeFi incentives. The ynETHx Strategies are managed by the YieldNest DAO/subDAOs. ### \*\*Contract Address: \*\* [`0x657d9ABA1DBb59e53f9F3eCAA878447dCfC96dCb`](https://etherscan.io/address/0x657d9ABA1DBb59e53f9F3eCAA878447dCfC96dCb) ## **Base Configuration - ynETHx** We've comprehensively assessed YieldNest MAX LRTs, focusing on how products like ynETHx generate yield, are designed, and maintain security. 🔗 [\*\* YieldNest General Protocol Assessment\*\*](https://www.llamarisk.com/research/yieldnest-general-assessment) Below is a high-level overview of its key features, architecture, and how it manages security & risk. ## **Key Features** ynETHx is designed to maximize capital efficiency by aggregating ETH and LSD assets into a single, high-performance liquid instrument. It optimizes exposure across yield and DeFi strategies, ensuring continuous yield generation. With a multi-layered revenue model, ynETHx captures staking rewards, DeFi yields, and additional incentives such as airdrops and governance rewards. To ensure continuous risk mitigation, ynETHx integrates HyperNative’s threat detection and incident response systems, which operate 24/7 to identify and neutralize risks before they impact capital. This security layer is backed by a swarm of AI agents that continuously analyze market conditions, optimize allocations, and learn from new data to enhance yield efficiency over time. ynETHx is fully ERC-4626 compliant, making it interoperable with DeFi protocols for liquidity provision, lending, and structured yield generation. Users can redeem ynETHx for ETH plus accumulated rewards or trade it freely across DeFi platforms, with built-in liquidity buffers ensuring smooth exits even in volatile conditions. ### **Withdrawal Flow** ynETHx uses a dedicated withdrawal buffer to enable instant redemptions on a first-come, first-served basis. A portion of assets is kept liquid, allowing users to exit without delay under normal conditions. If the buffer is depleted, withdrawals are paused until it is replenished through rebalancing. Learn more about the MAX LRT Withdrawal Flow: ## **ynETHx Architecture** ynETHx operates through an automated and modular framework that ensures efficient capital deployment and risk-adjusted returns by: * Automating rebalancing to optimize exposure across ETH staking, DeFi, and DeFi strategies. * Adjusting market-making mechanisms dynamically, capturing inefficiencies for higher yields. * Leveraging HyperNative’s security infrastructure, ensuring continuous monitoring and proactive threat mitigation. * Using a swarm-based AI model to continuously analyze risk factors, liquidity trends, and market conditions for performance optimization. ## Value Accrual ynETHx auto-compounds rewards, enhancing token value over time. As rewards are distributed and compounded, the value of ynETHx grows. Value Accrual Example (assuming 12.5% APY for ynETHx) ## **Security & Risk Management** ynETHx’s multi-layered security framework is designed to protect capital and maintain system integrity through: * HyperNative’s AI-driven threat detection and automated incident response, ensuring real-time security monitoring. * Guard Validation Engine, which secures MAX LRT transactions with a whitelist-based rule system, preventing unauthorized actions and identifying risks in real-time. It enforces strict access controls, customizable validation logic, and fail-safe defaults to enhance security, governance, and adaptability. * On-chain liquidity buffers, providing efficient exits and stable capital flows. * Automated rebalancing mechanisms, ensuring dynamic exposure adjustments to protect against volatility and systemic risks. ynETHx represents the next evolution of capital-efficient DeFi strategies, combining automated rebalancing, real-time risk mitigation, and deep composability into a single, high-performance asset designed for sustainable yield optimization. # ynBNB MAX - ynBNBx **ynBNBx is a MAX LRT designed to maximize returns on BNB and its derivatives by integrating yield and DeFi strategies into a single, capital-efficient, composable token. While yield optimization serves as a core primitive, ynBNBx extends beyond traditional staking models, dynamically reallocating capital across yield-generating opportunities to unlock DeFi’s full potential.** The primary objective of ynBNBx is to capture staking rewards and continuously optimize capital efficiency through modular strategy execution, AI-driven risk management, and real-time liquidity adjustments. By leveraging an evolving ecosystem of financial primitives, ynBNBx ensures sustainable, high-yielding, and composable DeFi exposure while maintaining Layer 1 settlement assurances on BNB Chain. Yields are targeted within a risk-adjusted APY range, but actual returns can fluctuate based on market conditions, strategy performance, and DeFi incentives. The ynBNBx strategies are actively managed by the YieldNest DAO/SubDAOs to adapt to changing opportunities while maintaining security and efficiency. ### \*\*Contract Address: \*\* [`0x657d9ABA1DBb59e53f9F3eCAA878447dCfC96dCb`](https://bscscan.com/address/0x32C830f5c34122C6afB8aE87ABA541B7900a2C5F) ## **Base Configuration - ynETHx** We've comprehensively assessed YieldNest MAX LRTs, focusing on how products like ynBNBx generate yield, are designed, and maintain security. 🔗 [\*\* YieldNest General Protocol Assessment\*\*](https://www.llamarisk.com/research/yieldnest-general-assessment) Since ynBNBx was our first MAX LRT we released a separate Asset Risk Assessment: YieldNest ynBNBx for more detailed information. [\*\* 🔗 Asset Risk Assessment: YieldNest ynBNBxessment\*\*](https://www.llamarisk.com/research/asset-risk-ynbnbx) Below is a high-level overview of its key features, architecture, and how it manages security & risk. ## **Key Features** ynBNBx is designed to maximize capital efficiency by aggregating BNB and its derivatives into a single, high-performance liquid instrument. It optimizes exposure across yield and DeFi strategies, ensuring continuous yield generation. * Multi-Layered Yield Optimization – Captures staking rewards, DeFi yields, and additional incentives, including airdrops and governance rewards. * Automated Rebalancing & Market Efficiency – Dynamically reallocates wBNB, slisBNB, clisBNB, and asBNB to optimize returns while mitigating risk. * Security & Risk Mitigation – HyperNative’s 24/7 monitoring and automated incident response proactively identify and neutralize risks before they impact capital. * Guard Validation Engine – Implements whitelist-based transaction security to prevent unauthorized actions, enforce access controls, and protect governance integrity. * DeFi Integration & Liquidity – ERC-4626 compliant, enabling seamless use in lending, liquidity pools, and structured yield products. Users can redeem ynBNBx for wBNB plus accumulated rewards or trade it freely across DeFi platforms, with built-in liquidity buffers ensuring smooth exits even in volatile conditions. ### **Withdrawal Flow** ynBNBx uses a dedicated withdrawal buffer to enable instant redemptions on a first-come, first-served basis. A portion of assets is kept liquid, allowing users to exit without delay under normal conditions. If the buffer is depleted, withdrawals are paused until it is replenished through rebalancing. Learn more about the MAX LRT Withdrawal Flow: ## **ynBNBx Architecture** ynBNBx operates through an automated and modular framework that ensures efficient capital deployment and risk-adjusted returns by: * Automating rebalancing to optimize exposure across BNB staking, DeFi, and DeFi strategies. * Smart market-making mechanisms dynamically adjust positions, capturing inefficiencies for higher yields. * HyperNative’s security infrastructure provides continuous monitoring and proactive threat mitigation. * Coprocessor integration enables real-time liquidity analysis and automated strategy execution, optimizing capital efficiency. * Buffer Strategy for Liquidity Management – Maintains readily accessible liquidity, ensuring instant redemptions without disrupting underlying positions. ## Value Accrual ynBNBx auto-compounds rewards, enhancing token value over time. As rewards are distributed and compounded, the value of ynBNBx grows. Value Accrual Example (assuming 12.5% APY for ynBNBx) ## **Security & Risk Management** ynBNBx’s multi-layered security framework is designed to protect capital and maintain system integrity through: * HyperNative’s AI-driven threat detection and automated incident response, ensuring real-time security monitoring. * Guard Validation Engine, which secures MAX LRT transactions with a whitelist-based rule system, preventing unauthorized actions and identifying risks in real time. It enforces strict access controls, customizable validation logic, and fail-safe security defaults to enhance security, governance, and adaptability. * On-chain liquidity buffers, ensuring stable exits and efficient capital flows under all market conditions. * Automated risk-adjusted rebalancing mechanisms, dynamically adjusting exposure to protect against volatility and systemic risks. * Automated strategy ejection, ensuring instant fallback to wBNB in case of protocol failures or security threats. ynBNBx represents the next evolution of capital-efficient DeFi strategies, combining automated rebalancing, real-time risk mitigation, and deep composability into a single, high-performance asset designed for sustainable yield optimization. # ynBTC MAX - ynBTCx ynBTCx is currently in development, with deployment targeted for mainnet launch. For any suggested asserts that we need to look into, Please post a proposal on: Due to high demand, ynBTCk, a Kernel yield optimization-focused strategy, is already live on BNB Chain and will eventually serve as an underlying strategy for ynBTCx. The ultimate goal for ynBTCx is BTC Core L1 settlement. See here ynBTCk advanced page: ### \*\*Contract Address: \*\* ## **Base Configuration - ynBTCx** We've comprehensively assessed YieldNest MAX LRTs, focusing on how products like ynBTCx generate yield, are designed, and maintain security. 🔗 [\*\* YieldNest General Protocol Assessment\*\*](https://www.llamarisk.com/research/yieldnest-general-assessment) Below is a high-level overview of its key features, architecture, and how it manages security & risk. ## **Key Features** ... ## **ynETHx Architecture** ... ## **Security & Risk Management** ... # ynUSD MAX - ynUSDx ynUSDx is a MAX LRT designed to deliver optimized, risk-adjusted yield from stablecoins. By aggregating top-tier DeFi and RWA strategies spanning lending, liquidity provision, and yield farming, ynUSDx transforms stablecoin exposure into a single liquid, composable asset. Built on Ethereum L1 for security and settlement finality, it targets APYs of 4–15%+ while giving users the flexibility to scale yield exposure up the risk curve. With its modular design, auto-compounding engine, and dynamic capital allocation, ynUSDx turns passive stablecoins into productive, yield-generating assets, unlocking utility, transparency, and sustainable growth for DeFi users. ### \*\*Contract Address: \*\* [0x3DB228FE836D99Ccb25Ec4dfdC80ED6d2CDdCB4b](https://etherscan.io/address/0x3DB228FE836D99Ccb25Ec4dfdC80ED6d2CDdCB4b) We've comprehensively assessed YieldNest MAX LRTs, focusing on how products like ynUSDx generate yield, are designed, and maintain security. 🔗 [YieldNest General Protocol Assessment](https://www.llamarisk.com/research/yieldnest-general-assessment) ## **Base Configuration - ynUSDx** Below is a high-level overview of its key features, architecture, and how it manages security & risk. ## Key Features * Multi-asset USD exposure: Uses top stablecoins and interest-bearing derivatives. * Auto-compounding: All rewards are harvested and redeployed for maximum yield. * Flexible Strategy Engine: Capital allocated dynamically across strategies. * Buffer-Based Withdrawals: A portion of assets remains liquid to enable fast redemptions. * ERC-4626 Compliant: Full compatibility with external DeFi protocols. * Governance Controlled: YieldNest DAO can vote on strategies, assets, and parameters. * Guard Validation Engine: On-chain security layer that enforces trusted execution and governance-approved rules across all MAX LRT transactions. ## Strategy Architecture * Lending Strategy: Morpho USDC Core Vault ( [link](https://app.morpho.org/ethereum/vault/0x8eB67A509616cd6A7c1B3c8C21D48FF57df3d458/gauntlet-usdc-core) ) * Super USD strategy: SuperUSDC optimizes USDC yield across blue-chip lending protocols on Ethereum by automatically rebalancing between vaults using predictive on-chain data. * RWA Strategy: ynRWAx is a curated Real-World Asset (RWA) vault users access to stable yields generated on RWAs. * Buffer Target: 10–20% in USDC ## Security & Risk Management * Hypernative Monitoring: 24/7 AI-based threat detection. * Guard Engine: Whitelist-based control over strategy interactions. * Audited Contracts: All deployed code is reviewed and upgradeable. * Manual Buffer Refill: Rebalanced as needed until automation is implemented. ## Value Accrual Example ynUSDx auto-compounds rewards, enhancing token value over time. As yields are generated and compounded, the value of ynUSDx grows. Value Accrual Example (assuming 12.5% APY for ynUSDx) ynUSDx does not rebase. Instead, the token's share price increases as the underlying stablecoins generate and compound yield.. No rebasing—value grows via share price. ynUSDx offers a stable, modular, and high-yield USD exposure for DeFi users, abstracting strategy complexity while ensuring transparency, liquidity, and security. # ynRWA MAX - ynRWAx ynRWAx is a curated Real-World Asset (RWA) product that provides users with streamlined access to stable, real-world yields. Backed by real, off-chain collateral uncorrelated with crypto markets and diversified across varying durations, ynRWAx is designed for users looking to park their USDC and earn stable, RWA-backed returns on their crypto assets. Funds are deployed across diversified real-world assets and managed via fully audited, on-chain infrastructure. Contract Address: [0x01Ba69727E2860b37bc1a2bd56999c1aFb4C15D8](https://etherscan.io/address/0x01ba69727e2860b37bc1a2bd56999c1afb4c15d8) We've comprehensively assessed YieldNest MAX LRTs, focusing on how products like ynRWAx generate yield, are designed, and maintain security. Share feedback on the editor 🔗 [YieldNest General Protocol Assessment](https://www.llamarisk.com/research/yieldnest-general-assessment) ## Base Configuration - ynRWAx Below is a high-level overview of its key features, architecture, and how it manages security & risk. ## Key Features * Stable, Diversified Yield: Earn yield from real-world private credit strategies uncorrelated with crypto markets. * Auto-Compounding Engine: Weekly streamed interest is auto-redeployed and reflected in the token's rising redemption value. * Seamless Liquidity Access: Scheduled redemption windows and real-time withdrawals powered by a buffer system and optional AMMs. * Governance-Led Strategy Management: YieldNest DAO governs strategies, assets, and parameters through on-chain voting. * Security-First Infrastructure: Includes audited smart contracts, DECO oracle integration, and live monitoring (Hypernative, Defimon). * Guard Validation Engine: Enforces governance-approved rules and secure execution for all transactions within the MAX LRT architecture. * ERC-4626 Compliant: Fully compatible with other DeFi protocols and yield strategies. ## Vault Mechanics * **Deposit & Mint:** Deposit USDC to mint ynRWAx 1:1; value grows over time. * Yield Accrual: Issuers prepay interest weekly. Interest is streamed to users. * Redemption: Full withdrawal allowed at maturity of each product. Early exits are possible via buffer or AMM (fees may apply). * Smart Contracts: Fully audited, on-chain logic governed by YieldNest DAO. * Default Protection: Legal enforcement + collateral liquidation procedures pre-engaged. ## Value Accrual Example ynRWAx auto-compounds real-world yield, gradually increasing the token's redemption value over time. The token does not rebase; instead, its share price increases as yield accrues from private credit strategies. **Value Accrual Example (assuming 15% APY for ynRWAx)** ynRWAx does not rebase. Instead, the token's value grows through a rising share price as yield is streamed and compounded from off-chain repayments. ### Governance, Curation & Security * Curated Issuers: Validated independently by Bird & Bird, ensuring asset legitimacy and compliance. * Oracle Integration: DECO-powered TLS proof framework. * We plan to implement [DECO](https://www.deco.works/) , a privacy-preserving oracle protocol. Using advanced cryptographic techniques, DECO enables users to prove facts about their web (TLS) sessions to oracles without revealing sensitive data. All RWA assets will be accompanied by DECO-secured proofs, providing verifiable Web2 records on-chain. * Audited Codebase: Reviewed by leading firms. * Live Monitoring: Hypernative and Defimon integrations. * Upgrade Safety: Timelock + role-based control + proxy architecture. * Governance: Parameter management and strategic oversight are transparently governed by the YieldNest DAO and eventually a dedicated SubDAO. All smart contracts powering the ynRWAx vault are reviewed and audited by leading blockchain security firms. Third-party partners, such as Hypernative and Defimon provide additional runtime monitoring and threat detection. The vault utilizes role-based access control, time-lock enforcement, and an upgradable proxy architecture to ensure safety, transparency, and flexibility. Users are encouraged to review the open-source code and published audit reports. ## ynRWAx Vault Design (Happy flow) - deep dive for clarity The ynRWAx Vault provides exposure to curated real-world credit strategies while delivering daily, auto-compounded yield on USDC. This section provides a detailed breakdown of the "Happy Flow," an ideal operating scenario based on a 12-month cycle. This cycle is not only a simplified illustration but also the structure used in the initial release of ynRWAx. Over time, ynRWAx will evolve to stack multiple durations with staggered maturities. Users will also be able to stake ynRWAx to earn additional yield and have their capital automatically rolled into longer-duration credit positions, creating a continuously compounding, dynamic yield product. ### Deposit & Minting Users deposit USDC and mint ynRWAx at a 1:1 ratio. The token value increases over time as yield is accrued and auto-compounded. Deposits are always open and processed on a rolling basis. ### Core Mechanics * Duration: 365 days per credit cycle (initially used as the base example; future cycles may include multiple durations with staggered maturities) * Initial Capital Split: 100% to issuer, 0% held in liquidity buffer * Yield Distribution: Yield is prepaid bi-weekly by the issuer and streamed over 14 days * Liquidity Events: Redemption is always possible via the buffer. Slippage or fees may apply for large mid-cycle withdrawals. During post-cycle maturity windows, users can withdraw all of their liquidity without restriction during the liquidity window. ## Design Benefits * Predictable Yield: bi-Weekly interest streaming = consistent, visible growth * Hands-Free Rollover: Stay in position with uninterrupted compounding * Security & Enforcement: Issuers are legally bound; collateral can be liquidated on default ## ynRWAx - Frequently Asked Questions (FAQ) Below is a selection of frequently asked questions (FAQs). Please keep the great questions coming so we can continue expanding this list. If you have additional questions, join our Discord and ask us anything. Drop your question in the [**DeFi strategy**](https://discord.gg/EQ9nhPTw) channel and get a response from the community right away.
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## Roadmap & Extensions * Multi-Duration Support: Parallel cycles with mixed durations. * Spectra Integration: Split principal vs. yield tokens. * Staking ynRWAx: For higher yield and first redemption rights * Tranching: Senior/Junior structures for risk separation. * ynUSDx Arbitrage Strategy: Use underpricing arbitrage to optimize returns. * Secondary Buffer: ynUSDx can absorb excess withdrawals with a 0% exit fee. * Leveraged RWA Strategy: Replicate Securitize-Morpho architecture with rate-aware liquidation and looping via Euler. * Always-On Liquidity: Buffer enables mid-cycle exits ## Roadmap - Strategy ideas **ynUSDx Arbitrage Allocation into ynRWAx** Market Arbitrage Strategy ynUSDx can strategically allocate into ynRWAx by capturing arbitrage between the real value of ynRWAx and its pool price. Occasionally, the pool price of ynRWAx may dip below its intrinsic value due to short-term confidence imbalances. ynUSDx can exploit this by buying discounted ynRWAx on the market. Strategy Template * Up to 20% of ynUSDx can be allocated to ynRWAx. * Whenever ynRWAx trades at a >0.3% discount, buy up to 2% of ynUSDx TVL per day worth of ynRWAx. * Hold the position until the next ynRWAx redemption window. Redeem partially or fully based on performance. **Fast-Withdrawal Buffer Facility** ynRWAx can use ynUSDx as a secondary buffer for fast withdrawals, with a 0% withdrawal fee. This setup allows ynRWAx to provide near-instant liquidity via ynUSDx, enhancing capital efficiency and user experience. **ynRWAx Looping on Levered RWA Strategy (external strategy)** Replicate the Securitize–Morpho model in a permissionless, Ethereum-native environment. * Design a fundamental rate oracle with anomaly protection (e.g., Aave Capo-style). * Ensure liquidation risks are minimized through robust on-chain checks. [ynRWAx](https://app.yieldnest.finance/token/ynRWAxx) simplifies access to private credit yield with auto-compounding, transparent governance, and institutional-grade infrastructure. It is an ideal vehicle for users and DAOs seeking stable, risk-adjusted yield in a single, composable token. # STAK STAK combines real-world yield from [ynRWAx](https://docs.yieldnest.finance/protocol-design/max-vaults/ynrwa-max-ynrwax) with DeFi efficiency via [ynUSDx](http://docs.yieldnest.finance/protocol-design/max-vaults/ynusd-max-ynusdx) in a single, liquid token. It routes into the [ynRWAx/ynUSDx Curve LP](https://www.curve.finance/dex/ethereum/pools/factory-stable-ng-650/deposit) and is staked through [StakeDAO](https://www.stakedao.org/strategy?protocol=curve\&vault=1-0xCa21e91eB3C601978C8293F0C3a544bA28cCC8ED) , with rewards auto-compounded back into the LP so users can “hold one token” while earning both off-chain secured credit yield and on-chain DeFi yield on Ethereum. Contract Address: [0xD1573de52fFF44dd92D275e20Fdab0296CCFF141](https://etherscan.io/address/0xD1573de52fFF44dd92D275e20Fdab0296CCFF141) **Yield sources** \~10% base yield from a mix of: * ynRWAx (secured real-world private credit) * ynUSDx (low-risk DeFi market exposure) * variable upside from: * Curve LP fees * Incentive rewards **Deposits & withdrawals** * Deposit or withdraw directly with the LP token, or via any token through [Enso](https://www.enso.build/) . * Enso computes an optimal route into the asset of your choice. Slippage varies by route and market liquidity always reviews the quoted path and expected slippage before confirming. STAK is composable and usable across DeFi in AMMs or structured yield markets to hedge, lock outcomes, or express a view on future yield. It’s best for users who can hold through the ynRWAx maturity cycle for optimal outcomes. ## Product summary * Goal: combine real-world, secured credit yield (ynRWAx) with DeFi efficiency (ynUSDx) and auto-compounded LP incentives into one position. * What you hold: STAK shares representing a pro-rata claim on the vault’s staked ynRWAx/ynUSDx Curve LP position. * Accounting / settlement: Ethereum L1. **Links** * STAK website: * YieldNest app: ## Base configuration ## How STAK works ### Deposit flow Users can deposit: * Directly: ynRWAx/ynUSDx Curve LP tokens, or * Routed deposits: any supported asset routed through an aggregator path via [Enso](https://www.enso.build/) (e.g., swap → add liquidity) into the ynRWAx/ynUSDx Curve LP position. High-level steps: 1. User deposits an asset 2. Asset is converted into ynRWAx/ynUSDx Curve LP tokens 3. LP tokens are staked via StakeDAO 4. User receives STAK shares Core behavior: STAK stakes the ynRWAx/ynUSDx Curve LP via StakeDAO to earn swap fees and incentives, with rewards auto-compounded into additional LP over time. ## Yield generation STAK’s yield stacks across three layers: ### 1) Base yield * ynRWAx: RWA-backed yield that accrues value vs USDC. * ynUSDx: stablecoin yield via diversified, risk-adjusted DeFi strategies. ### 2) Curve LP rewards * DEX fees (swap fees) and any liquidity incentives earned by the underlying Curve LP position. ### 3) StakeDAO incentives + other rewards * Boosted/aggregated incentives from staking the LP via StakeDAO, harvested and auto-compounded back into the LP position over time. ## Auto-compounding and value accrual * Rewards are periodically harvested and converted back into additional LP exposure. * STAK is intended to accrue via share-price growth (i.e., more underlying LP per STAK over time), rather than periodic payouts. ## Withdrawals You can withdraw at any time, using one of two approaches: ### 1) Withdraw LP tokens and exit manually Withdraw the ynRWAx/ynUSDx Curve LP tokens, then exit the LP via: * ynUSDx only exit into a liquid token redeemable for USDC * ynRWAx only for users seeking concentrated RWA exposure * Balanced withdrawal proportional share of both tokens, depending on Curve pool composition ### 2) Route your withdrawal via Enso You can route your withdrawal through Enso, which computes an optimal path into an asset of your choice. Slippage may occur depending on the selected route, so always review the quoted path and expected slippage before confirming. Note on duration: STAK is optimally suited for users who can remain invested through the full ynRWAx maturity cycle to achieve optimal outcomes. Early withdrawals are always possible, but may incur slippage depending on market conditions and pool liquidity. ## Security, trust boundaries, and key risks ### Trust boundaries * On-chain vault logic: mints/burns STAK and manages the staking position. * Curve: LP pricing and exit liquidity depend on pool depth and pool composition. * StakeDAO: staking wrapper and incentive routing for the LP position. * ynRWAx off-chain manager: ynRWAx is built with Kimber Capital (AFS Licence No. 425278). * ynUSDx: combines multiple DeFi strategies designed for strong risk-adjusted stablecoin yield. ### Primary risks * Liquidity / slippage risk: LP exits (especially single-sided) can be sensitive to pool depth and imbalances. * Duration / discount risk (ynRWAx): pre-maturity secondary pricing can trade at a discount/premium vs accrued value; this can flow through to the LP and STAK. * Smart contract risk: YieldNest contracts + integrations (Curve, StakeDAO, routing paths). * RWA/credit & legal-structure risk: ynRWAx relies on off-chain credit facilities and legal enforcement; disclosures apply. * Incentive variability: Curve/StakeDAO incentives and DEX fees are variable; any “target APY” is not guaranteed. # Max Vaults APY Calculation ### **APY Calculation** The APY for Max Vaults and underlying strategies represents its annualized performance based on a trailing 7-day and 31-day period of on-chain data. This provides a current, data driven measure of the products recent performance. > ℹ️ The example below is based on the trailing 7-day APY calculation. The same calculation is applied to the trailing 31-day APY by changing the time parameter to 31 days. We only display the trailing 31-day APY for Max Vaults. Max Vault strategies display trailing 7-day APY data. The calculation relies on the **rate** that each strategy’s *provider* contract publishes (e.g., `getRate(asset)` ). 1. **On-chain exchange rates** Our system reads a strategy's exchange rate directly from its smart contract. The rate is captured at two points in time: * The rate from the latest block ( `R_now` ). * The rate from a block approximately 7 days prior ( `R_7d-ago` ). 2. **Calculate the 7-Day Period Return** Two rates are used to calculate the strategy's raw percentage gain over the \~7 day period. 1. **Annualized return** The below calculation is used to project this 7-day return over a 365-day horizon to calculate the APY for the strategy. This shows what the return would be over a full year if the performance of the last 7 days were to continue. A standard periodic compounding formula for is used for this projection: > ℹ️ Where `31,536,000` is the number of seconds in a year. And `Δt` is the precise number of seconds that elapsed between the two blocks measured. 1. This process updates hourly, so the APY always reflects the most recent 7-day and 31-day performance data. # LRT strategies LRT Strategies are the underlying yield-generating mechanisms powering MAX LRTs. While MAX LRTs serve as the top-level vaults, dynamically rebalancing across multiple strategies, LRT Strategies are the building blocks that execute specific yield optimization techniques. Not all LRT Strategies are directly accessible to users. Some function entirely within their MAX LRTs, while others offer a public interface for advanced users who want isolated exposure to a specific strategy. This modular architecture allows YieldNest to optimize risk management while implementing a tailored, strategy-specific fee structure MAX LRTs do not charge fees; fees are only applied at the strategy level. By structuring MAX LRTs this way, YieldNest achieves: * **Efficient risk management –** Strategies operate independently while still being managed under a unified MAX LRT framework. * **Granular fee optimization –** Fees are applied only at the strategy level, ensuring fair and transparent cost structures. * **Flexibility for advanced users –** Those seeking isolated exposure to a specific LRT Strategy can interact with individual strategies instead of the broader MAX LRT. Each LRT Strategy serves a unique role in optimizing returns while maintaining Layer 1 settlement assurances. This architecture allows YieldNest to adapt continuously, enhance capital efficiency, and optimize yield optimization allocations, ensuring long-term sustainability and performance in the evolving DeFi landscape. # ynETH ynETH is an nLRT that exposes users to a dynamically curated Basket comprising AVSs across multiple industry verticals. The YieldNest DAO carefully selects and fully vets all of the operators and AVS within ynETH’s Basket to deliver an nLRT with the highest possible risk-adjusted yield. Depositors deposit ETH into YieldNest's yield optimization pool and receive ynETH back as a tradable and liquid "receipt" token representing the underlying yield-generating deposited ETH. The generated yield optimization rewards are distributed back to ynETH holders, veYND tokens, and operators. \*\*ynETH’s APY = Ethereum staking APY + AVS Yield + Airdrops \*\* ynETH is not a rebasing token, meaning that the amount of ynETH held will not change over time. Instead, the underlying value of the token will increase as the rewards auto-compound and accrue to the token on-chain. ## ynETH Architecture Value Accrual: ynETH auto-compounds rewards, enhancing token value over time. As rewards are distributed and compounded, the value of ynETH grows. Value Accrual Example (assuming 12.5% APY for ynETH) ## ynETH Use Cases * \*\*Controlled Exposure: \*\* Holding ynETH allows users to earn boosted yields by depositing ETH into a pre-selected and carefully vetted basket of AVS categories—all by simply holding a single liquid token. * \*\*Providing Liquidity: \*\* Users can use ynETH to provide liquidity to external DeFi protocols like Curve that support ynETH pools to earn additional revenues from swap fees and liquidity mining. * \*\*Lending/Borrowing: \*\* Users lend ynETH on decentralized money markets like Aave or Euler or use it as collateral to borrow other assets, including ETH or various stablecoins. Furthermore, users could leverage their ynETH by borrowing ETH against it and depositing that ETH back to YieldNest to acquire even more ynETH. * **Realizing Yield Optimization Profits:** Holders can always withdraw their ynETH for the underlying ETH plus the accumulated yield optimization revenue from AVSs on YieldNest or swap ynETH for ETH on decentralized exchanges for like-kind assets like Curve. **Contract Address:** `0x09db87A538BD693E9d08544577d5cCfAA6373A48` # Withdrawals - ynETH We prioritize making our withdrawal process as secure, efficient and straight-forward as possible. ynETH can be withdrawn/unstaked directly via our YieldNest app. With this feature, we allow our users to claim any underlying assets in exchange for the requested ynETH. As many of you might know, withdrawals for native LRTs (nLRTs) like ynETH have been in the works for some time, and it's likely unclear to most users why this is the case. The reason is that an nLRT like ynETH assigns its validators to protocol pods, which then delegate stake to operators, who further delegate it to AVSs. This process is complex because each validator must submit proofs for deposits, rewards distribution, and withdrawals. While this complexity adds some delays, it also ensures that our ETH validators are genuinely deposited with 100% provable ownership. This strengthens the infrastructure, making it safer and more reliable. This is also why we've separated ERC20 token (LSD) strategies from native ETH strategies, and we operate both an nLRT and LRT system within our protocol today. The delay is primarily due to the difficulty in proof generation, submission, and optimization, which is challenging. The underlying delegation protocol has significantly improved this process by introducing PEPE (M3), which was indicated to go live on mainnet on September 4th and is already live on testnet. We have fully completed the withdrawal flow and are now waiting for the PEPE (M3) deployment, after which we will start rolling out withdrawals for ynETH. ## Secure & Audited ### To maintain top security, YieldNest's withdrawal flow is fully audited by ChainSecurity to ensure the withdrawals are safely being executed. ## Withdrawal options and flow In order to redeem ynETH for its share of the underlying it is necessary to bring a sufficient quantity of ETH from the beacon chain into the EigenPod and then back into the ynETH protocol where it can be released to the redeeming account. Due to the inherent delays built into the aforementioned steps YieldNest implements a queue. The UI provided by app.yieldnest.finance will provide a simple user experience. The rest of this section provides technical detail to help users understand how the process works behind the frontend interface. ### Withdrawal queue requests and claims To initiate the process the user calls requestWithdrawal with the amount of ynETH to redeem. This will transfer amount ynETH from the requester to ynETH's WithdrawalQueueManger contract. In exchange for the ynETH the WithdrawalQueueManger mints a claim NFT to the requestor's address. The NFT contains the amount being withdrawn, the amount of the withdrawal fee, the redemption rate, the request creation timestamp, and a flag indicating if the withdrawal has been processed yet. As usual, the NFT has a unique ID. To complete the process the user calls claimWithdrawal with the ID of the NFT obtained from requestWithdrawal earlier. An address to receive the ETH is also supplied. If the ETH to cover the withdrawal is available, the claim NFT is marked used and burned, and the amount of ETH specified in the NFT to the receive address. ### Withdrawal queue cancelation After calling requestWithdrawal the user must wait until funds are available before calling claimWithdrawal. The wait time depends on external factors, which will be addressed in the next section. Once initiated, withdrawal requests cannot be canceled. There is no time limit for claiming a withdrawal, which has implications we will discuss in the section on faster redemption methods. ### Determining claim readiness As funds become ready for claiming an event called RequestsFinalized is emitted from the WithdrawalQueueManager contract. When lastFinalizedIndex is greater than or equal to the claim NFT's ID then it's ready to go. ### Withdrawal queue processing time The amount of time that will be necessary to wait between requesting a withdrawal and being able to receive the ETH depends primarily on the length of the beacon chain exit queue and the slashing delay imposed by the underlying delegation protocol. Generally, the time it takes for ETH to be withdrawn from the beacon chain is: 1. The time until exited from the active set. 2. The time until entering the withdrawable state. 3. The time until the withdrawal sweep. The timings are as follows: 1. This website can be consulted for timing information: [www.validatorqueue.com](http://www.validatorqueue.com) . The relevant section is the Queue Wait Time (days) for the time it takes to exit the active set. During 2024 this time has been negligible on average, rarely exceeding 12 hours except for a brief period in the beginning of January when a sudden spike in exits caused a delay of up to 5 days. 2. This takes approximately 27 hours. 3. There is a limit of 16 validators per block, and currently there are approximately 1 million active validators, therefore it takes about 8.5 days for a full cycle. The exact time it takes for this to execute this sweep depends on the position of the validator index being withdrawn relative to the index of validator that was swept. The protocol's minWithdrawalDelayBlocks is currently set to 50400, or 7 days. This parameter may be changed by the delegation protocol in the future. The withdrawal from the delegation layer and from the Beacon chain are started at the same time, running in parallel, thus the total delay before a withdrawal request becomes claimable is whichever delay is longer. Withdrawals may be ready sooner than these delay times if they can be satisfied by funds already in flight that aren't required to satisfy previously queued requests. For example, if user A had a request for 50 ETH, and then user B requested 10, then user B's withdrawal will be claimable at the same moment that user A can claim. This is due to the fact that validators each contain 32 ETH, and therefore 2 validators for 64 ETH had to be exited in order to satisfy A because A needs less than or equal to 14 ETH. ### Faster redemption methods There are two ways to avoid having to wait in the withdrawal queue: 1. Swap ynETH 2. Swap a claim NFT For a faster process for withdrawing funds, users can swap their ynETH on secondary sites such as liquidity pool providers. Keep in mind that using this method can become quite costly due to swap rates and slippage costs. Currently, there is a Curve pool here: The second option is for a user who wants liquidity now to sell their claim NFT to another party who is willing to wait for it to be redeemable. More information on arranging such trades will be published soon. # ynLSDe **ynLSDe is a Liquid Token (LRT) designed to optimize yield from Liquid Staking Tokens (LSTs) by deploying them into advanced DeFi yield strategies. Users can leverage ynLSDe to maximize returns on their deposited tokens without the need to unstake their assets. At its core, ynLSDe is a generalized open-source LRT built to accept and manage any asset — including LP tokens, stablecoins, and more.** Our pioneering Liquid Token (LRT) ynLSDe is designed to maximize rewards on your LSTs through advanced DeFi strategies. It operates as a YieldNest Curated AVS Basket, functioning as collateral for the basket itself or as collateral for isolated AVS categories. ## Key Features Yield Optimization of LSTs: Users can deposit their LSTs from supported platforms like Lido, Frax Finance, Mantle, and Origin Protocol. Supported Tokens: * Lido (stETH, wstETH) * Frax (sfrxETH) * Mantle (mETH) * Origin Protocol (OETH, wOETH) **Reward Accumulation:** Earn rewards from multiple sources such as ETH staking yield, DeFi strategy yield, protocol points, YieldNest Seeds, future AVS rewards, and AVS Airdrops. **Liquidity Maintenance:** Maintain the liquidity of your staked assets while accessing higher yields. **Secure and Efficient:** Designed with a streamlined code to minimize vulnerabilities and ensure security. ## ynLSD Architecture Value Accrual: ynLSDe is designed to auto-compound rewards, enhancing the token's underlying value over time. The token's value increases as rewards are distributed and compounded on-chain. ### Value accrual example assuming an APY of 12.5% for ynLSDe: ## ynLSDe Use Cases 1. Enhanced Yield: deposit LSTs to earn boosted yields through our carefully managed AVS basket. 2. Controlled Exposure: Holding ynLSDe allows users to earn boosted yields by depositing an isolated selection of LSTs into a pre-selected and carefully vetted basket of AVS categories—all by simply holding a single liquid token. 3. Providing Liquidity: Use ynLSDe to provide liquidity in external DeFi protocols like Curve, earning additional revenues from swap fees and liquidity mining. 4. Lending/Borrowing: Lend ynLSDe on decentralized money markets like Aave or Euler, or use it as collateral to borrow other assets, including ETH or various stable coins. 5. Profit Realization: Withdraw ynLSDe for the underlying LSTs plus the accumulated yield revenue from AVSs on YieldNest, or swap ynLSDe for ETH on decentralized exchanges. **Contract Address:** `0x35Ec69A77B79c255e5d47D5A3BdbEFEfE342630c` # ynBNB **ynBNB is a Liquid Token (LRT) designed to optimize yield from BNB Liquid Staking Tokens (LSTs). With ynBNB, users can maximize their returns by depositing staked BNB tokens such as slisBNB on Kernel. ynBNB, built on vaults, will eventually rebalance to the highest-yielding DeFi opportunities, keeping security and flexibility in mind.** ## Key Features Yield Optimization of BNB LSTs: Stake your BNB to receive slisBNB from Lista, which can be used which can be used to leverage Kernel. ## Supported tokens: * Lista DAO: [slisBNB](https://bscscan.com/token/0xB0b84D294e0C75A6abe60171b70edEb2EFd14A1B) Reward Accumulation: Earn from BNB staking yields, yield optimization rewards, YieldNest Seeds, future AVS airdrops & rewards. Liquidity Maintenance: Access higher yields while maintaining the liquidity of your staked assets. Secure and Efficient: Designed to minimize vulnerabilities and ensure security. ## ynBNB Architecture Value Accrual: ynBNB auto-compounds rewards, enhancing token value over time. As rewards are distributed and compounded, the value of ynBNB grows. Value Accrual Example (assuming 5.5% APY for ynBNB) ## ynBNB Use Cases * Enhanced Yield: deposit slisBNB to earn boosted yields through yield optimization. * Controlled Exposure: Holding ynBNB allows users to earn boosted yields —all through a single liquid token. * Providing Liquidity: Use ynBNB to provide liquidity on DeFi platforms like Thena, earning swap fees and liquidity mining rewards. * Lending/Borrowing: Lend ynBNB on decentralized markets like Venus to use it as collateral to borrow assets like BNB or stablecoins. * Profit Realization: Withdraw ynBNB for slisBNB plus accumulated yield optimization revenue, or swap it for BNB on decentralized exchanges. # ynBTCk **ynBTCk is a Liquid Token (LRT) designed to optimize yield from BTC Liquid Staking Tokens (LSTs) through Kernel. With ynBTCk, users can maximize their returns by depositing BTC tokens such as BTCB, solvBTC, and solvBTC.BBN. ynBTCk is a dedicated strategy LRT built to generate yield via Kernel.** ## Key Features Yield Optimization of BTC LSTs: Stake your BTC derivatives to get BTCB (from Binance), solvBTC and solvBTC.BBN (both from Solv), which can be used to leverage Kernel. ## Supported tokens: * Binance: [BTCB](https://bscscan.com/token/0x7130d2a12b9bcbfae4f2634d864a1ee1ce3ead9c) * Solv: [solvBTC](https://bscscan.com/token/0x4aae823a6a0b376de6a78e74ecc5b079d38cbcf7) and [solvBTC.BBN](https://bscscan.com/token/0x1346b618dc92810ec74163e4c27004c921d446a5) Reward Accumulation: Earn from BTC LST's staking yields, yield optimization rewards, YieldNest Seeds, future AVS airdrops & rewards. Liquidity Maintenance: Access higher yields while maintaining the liquidity of your staked assets. Secure and Efficient: Designed to minimize vulnerabilities and ensure security. ## ynBTCk Architecture Value Accrual: ynBTCk auto-compounds rewards, enhancing token value over time. As rewards are distributed and compounded, the value of ynBTCk grows. Value Accrual Example (assuming 5.5% APY for ynBTCk) ## ynBTCk Use Cases * Enhanced Yield: deposit BTCB, solvBTC and solvBTC.BBN to earn boosted yields through yield optimization. * Controlled Exposure: Holding ynBTCk allows users to earn boosted yields —all through a single liquid token. * Providing Liquidity: Use ynBTCk to provide liquidity on DeFi platforms like Thena, earning swap fees and liquidity mining rewards. * Lending/Borrowing: Lend ynBTCk on decentralized markets like Venus to use it as collateral to borrow assets like BNB, BTC or stablecoins. * Profit Realization: Withdraw ynBTCk for BTCB plus accumulated yield optimization revenue. # MAX Vault-as-a-Service (VaaS) ## Overview The MAX Vault-as-a-Service (VaaS) framework enables third-party protocols, asset managers, and institutional partners to launch customized MAX Vaults utilizing the YieldNest infrastructure. These programmable, composable yield layers integrate seamlessly with our execution engine and Layer 1 settlement guarantees, enabling secure, transparent, and efficient deployment of on-chain and off-chain yield strategies. Vaults launched under VaaS operate with independent subDAO governance, offering full control over capital allocation, rebalancing logic, fee structures, and underlying strategies. ## Purpose MAX Vault as a Service (VaaS) is a product offered by YieldNest, enabling external issuers of real-world assets (RWA) or DeFi products on-chain, such as ETH treasury companies or projects building DeFi solutions, to leverage the YieldNest technology stack to launch their own vaults. We provide comprehensive support for structuring, management, and integration into the broader DeFi ecosystem. VaaS simplifies DeFi participation by offering a managed service for yield generation. It delivers composable single-token vaults that unify multiple yield sources into efficient, managed assets. Users gain access to risk-adjusted, auto-compounded returns without managing underlying strategies, leveraging automation, governance, and Layer 1 settlement for optimal performance. There are 2 different VaaS options: * Launch a YieldNest-managed vault on the MAX infrastructure * Register and operate a strategy within a YieldNest vault ## Why Partner with YieldNest for VaaS? In a rapidly evolving DeFi landscape, YieldNest stands out by combining battle-tested infrastructure with a network of top-tier partners to drive TVL growth and yield optimization. Our ecosystem includes collaborations with leading protocols like Curve, Balancer, Chainlink, and Pyth, as well as security firms such as ChainSecurity and Zokyo. This ensures your custom vault benefits from seamless integrations, enhanced liquidity, and institutional-grade security. By partnering with YieldNest, you unlock: * Accelerated TVL Growth: Wrap your strategies into DeFi-native assets to attract broader distribution and deposits. * Revenue Alignment: Our fee model creates a win-win flywheel, where increased TVL generates shared revenue—e.g., at $600M TVL and 10% average APY, the YieldNest DAO could earn $6M annually from performance fees alone, while boosting emissions to your vault. * Expert Support: From initial structuring to ongoing optimizations, our team handles the technical heavy lifting so you can focus on your core assets. * Proven Ecosystem Impact: Join a platform backed by contributors like Yearn, Convex, and leading DeFi protocol integrations, powering high-risk-adjusted returns (up to 35%+ APY in DeFi strategies). Launch your vault and tap into YieldNest's network to scale efficiently, many partners see rapid adoption through our composable designs. ## Key Benefits * Battle-Tested Implementation: Proven infrastructure with rigorous audits and real-world deployment. * Automatic Rebalancing: Optimization for capital allocation across whitelisted strategies. * Composable Underlying Strategies: Modular design allows integration of diverse on-chain and off-chain yields. * Continuous Monitoring and Improvements: Real-time oversight with ongoing strategy enhancements. * On-Chain Accounting: No black boxes—full transparency in all transactions and performance metrics. * Flexible Settlement Layers: Supports Ethereum L1, L2s, or alternative L1s based on client preferences. * Customizable Governance and Support: SubDAO-controlled parameters with dedicated YieldNest assistance. * Risk Tranches and Durations: Optional incorporation of junior/senior tranches or fixed durations for tailored risk profiles. * ERC-4626 Compliance: Ensures native integration with DeFi protocols, aggregators, and automated vaults. ## Core Features * ERC-4626 Compliant: Integrates natively with DeFi protocols, aggregators, and automated vault infrastructure. * Coprocessor: Optimizes capital allocation across whitelisted strategies based on real-time yield, duration, and risk. * SubDAO-Controlled Parameters: Vault creators govern whitelisting, strategy curation, risk flags, and withdrawal conditions. * On-Chain Transparency: All strategy rebalances, performance data, and yield distributions are visible and verifiable on-chain. * Withdrawal Buffer Layer: Ensures liquidity via dynamic buffers and optional secondary market integrations (e.g., Curve pools). ## Who Should Use VaaS? * RWA Protocols: Ideal for those seeking liquidity layers and programmable on-chain strategies for real estate, credit, or infrastructure assets. * Stablecoin Issuers: Allocate reserves to tokenized yield-bearing assets with trustless management. * Treasuries & DAOs: Access diversified off-chain returns through a transparent, auditable structure. * DeFi Projects and ETH Treasuries: Build custom vaults for yield optimization without in-house development overhead. ## Transparency & Risk Management * Tokenized Property Registry: All RWA assets are fully on-chain with live metadata for verifiable ownership and performance. * SubDAO Governance: Strategy rotations, fee updates, and whitelist changes are managed via proposals and time locks. * Risk-Adjusted Allocations: Yield-to-maturity, liquidity scoring, and regional diversification ensure sustainable returns. * Audits & Compliance: Periodic audits, off-chain escrow confirmations, and risk oracle integrations maintain accountability. * Guard Validation Engine: A core security layer that enforces on-chain rules for all transactions processed by the coprocessor, enhancing safety, transparency, and governance. The modular architecture allows strategies to synchronize with their primary settlement layer. For instance, a vault might settle on Ethereum L1 while integrating strategies across L2s or other chains via trustless data propagation. ## L1 Settlement in VaaS DeFi's 24/7 markets require real-time settlement for accuracy and cohesion. MAX Vaults provide a unified framework to: * Synchronize underlying strategies, asset states, and accounting records. * Track Net Asset Value (NAV) in real-time. * Ensure seamless accounting across integrated strategies. This prevents inefficiencies, inconsistencies, or vulnerabilities from fragmented data, delivering a reliable and transparent service. ## MAX Vault Architecture Each MAX Vault is configured with: * Price Asset: The denomination asset (e.g., ETH or USD equivalents). * Primary Underlying Asset: The core yield-generating asset (e.g., WETH or stablecoins). * Accounting Layer: The Layer 1 settlement chain (e.g., Ethereum L1). * Other Underlying Assets: Additional assets for diversified yield optimization. Users deposit assets to receive share tokens, with internal modules like the RateProvider for pricing and the Coprocessor for allocation and accounting. The Buffer Strategy, fully ERC-4626 compliant, maintains liquidity for withdrawals. For more details, refer to the YieldNest General Protocol Assessment: . YieldNest's composable and flexible design allows us to tailor setups to client requirements, ensuring maximal efficiency, security, and functionality. ## Case Study: ynRWAx – Tokenized Real Estate MAX Vault ynRWAx is a MAX Vault created by a third-party RWA protocol to tokenize and yield-optimize a portfolio of real estate assets across varying maturity profiles. Users gain exposure to tokenized residential, commercial, and development properties with built-in auto-compounding yield and clear on-chain audit trails. This partnership demonstrates how VaaS can transform a $600M TVL strategy into a DeFi-native product, attracting wider users and generating sustainable 10–15% net APY while aligning incentives for all stakeholders. ### Vault Specifications (Example) * Accepted Assets: USDC, USDT. * Vault Token: ynRWAx. * Target APY: 10–15% (net of fees). * Settlement Layer: Ethereum L1. * Custody Layer: Licensed RWA custodians with on-chain proof-of-ownership. ## Capital & Yield Flow 1. Users deposit accepted assets (e.g., USDC/USDT) and receive the vault token (e.g., ynRWAx). 2. Funds are allocated across tokenized strategies via the Coprocessor. 3. Income (e.g., rental yields + loan repayments) flows into the vault and auto-compounds. 4. Withdrawals are fulfilled from the buffer layer or optional secondary market pools (e.g., ynRWAx/crvUSD). Express withdrawals use a dynamic buffer that holds a portion of vault assets in liquid form, adjusting automatically based on activity to support redemptions without disrupting long-term strategies. ## YieldNest Protocol Fees VaaS employs a straightforward fee structure to align incentives between the protocol, users, and partners. This fee flows to the YieldNest DAO to reward veYND holders and incentivize gauge emissions toward the vault. ### Simplified Example Calculation Consider a third-party RWA protocol with a real estate strategy targeting $600M in TVL and offering 10–15% APY. By wrapping it into ynRWAx via VaaS, it becomes a DeFi-compatible product, enhancing liquidity and accessibility. Assuming 10% average APY: * Annual yields generated: 10% of $600M = $60M. * 10% performance fee to YieldNest DAO: 10% of $60M = $6M per year. This $6M revenue to the DAO incentivizes veYND holders to direct extra YND emissions toward ynRWAx, boosting its APY and attracting more deposits. ### Synergistic Flywheel This design creates a win-win flywheel: * Partner Benefits: Increased TVL and broader DeFi distribution through YieldNest's ecosystem. * YieldNest DAO Benefits: Revenue from performance fees supports protocol growth. * veYND Holders Benefits: Motivated to vote for extra YND incentives to ynRWAx, as higher TVL means more fees and rewards. * User Benefits: Higher emissions lead to enhanced APY, driving more adoption and TVL, reinforcing the cycle. The result is a synergistic loop where all parties benefit: More TVL generates more yields and fees, which fund more incentives, attracting even more capital. For more on YieldNest tokenomics, see: . ## Get Started with VaaS Today Ready to unlock new yield opportunities and scale your protocol? Partner with YieldNest to deploy a custom MAX Vault tailored to your needs. # YieldNest DAO **The YieldNest DAO is the governance backbone of the YieldNest ecosystem, overseeing protocol decisions, products, and subDAOs. Its goal is to create a self-sustaining, decentralized system that operates autonomously, driven by community participation and AI-enhanced decision-making.** At its core, the YieldNest DAO empowers YND token holders to shape the protocol's evolution. Governance will progressively decentralize, transitioning from core contributor oversight to full community control. Initially, the core team will provide strategic guidance, but as the ecosystem matures, DAO participants will take full governance responsibility, ensuring true decentralization. We believe in the inevitable rise of DeFi as a fully self-sovereign financial system. The YieldNest Protocol and its subDAOs serve as building blocks for this future, integrating with other DeFi primitives to simplify complexity, enhance security, and deliver the best risk-adjusted returns. At the same time, YieldNest strengthens the DeFi ecosystem, making it more resilient, adaptive, and antifragile. YieldNest DAO combines hybrid human/AI governance with AI-driven strategy execution. Advanced yield and DeFi mechanisms ensure the protocol, its products, and its ecosystem continue to thrive. This approach enables continuous evolution and strengthens its role in shaping the future of decentralized finance. YieldNest's governance system is built on Aragon V2, leveraging its framework to improve and harden the YieldNest DAO continuously. ## YieldNest Products & subDAOs All products and subDAOs each have their own dynamic fee structure. See below for an overview of all products and subDAOs. ### MAX LRTs: [Read more about MAX LRTs](https://docs.yieldnest.finance/protocol-design/max-lrts-the-apex-of-yield-optimization) * ynETH MAX (**ynETHx**): ETH-based strategies * ynBTC MAX (**ynBTCx**): BTC-based strategies * ynUSD MAX (**ynUSDx**): USD-based strategies * ynBNB MAX (**ynBNBx**): BNB-based strategies * ynRWA MAX (**ynRWAx**): RWA-based strategies ### LRT Strategies: [Read more about LRT Strategies](https://docs.yieldnest.finance/protocol-design/lrt-strategies) * ynETH – Native ETH yield optimization strategy (nLRT) * ynBTCk – BTC yield optimization strategy focused on the BNB chain (LRT) * ynLSDe – ETH yield optimization strategy for LSDs (LRT) * ynBNB – BNB-based yield optimization strategy (LRT) ### subDAOs YieldNest's subDAO ecosystem enables specialized governance over distinct product verticals, creating a modular and scalable governance architecture. SubDAOs operate under the umbrella of the YieldNest DAO while maintaining operational independence for their specific domains. ## YieldNest DAO Token YND & veYND [**A detailed description of the YND & veYND Tokenomics.**](https://docs.yieldnest.finance/governance-and-tokenomics/ynd-and-veynd-tokenomics) YND is the native governance token of the YieldNest DAO and can only be used for voting when staked, accumulating veYND voting power over time. Staked veYND grants holders influence over protocol decisions and a share of protocol revenue, aligning rewards with active governance participation. More in-depth: YieldNest's governance system is built on Aragon V2, leveraging its framework to continuously enhance and strengthen the DAO. Upon staking, users immediately start earning yield, which increases in parallel with their voting power. Exiting veYND to reclaim YND requires a 30-day queue and a minimum deposit of 42 YND for locking. ## StakeDAO's sdYND Liquid Lockers as an Alternative to veYND For those who prefer delegated voting and auto-compounding without the exit queue, liquid lockers, developed in collaboration with StakeDAO and Convex, will provide an alternative staking solution. We are offering sdYND liquid locker as a flexible alternative to the veYND staking. Unlike veYND, sdYND provides immediate liquidity and flexibility. Advantages of using sdYND include: * **Liquidity**: Users receive sdYND tokens, which can be traded or utilized in DeFi protocols, ensuring funds remain accessible. * **Flexibility**: Users can merge or unmerge positions at their convenience without the extended waiting periods of traditional locking mechanisms. * **Delegated Governance**: Maintain governance rights through delegated voting, actively participating in YieldNest DAO decisions. * **Auto-compounding Rewards**: Earn compounded staking rewards automatically, enhancing yield without active management. sdYND liquid lockers offer a seamless balance between participation in YieldNest governance and maintaining liquid capital. However keep note that delegated voting will limit direct governance participation compared to holding veYND directly. ## Governance Process ### Forum Discussion & Temperature Check Before any official proposal is made, proposers can open a temperature check thread to share their ideas and discuss them in the [YieldNest governance forum](https://gov.yieldnest.finance/). This step helps voters better understand proposals and encourages active governance participation. Anyone can initiate a temperature check discussion. AI Enhancement: AI-driven analytics can summarize discussion threads, highlight key points, and assess community sentiment to provide data-driven insights for voters. This allows for better engagement and ensures proposal improvements before moving to a formal vote. Once the temperature check has facilitated a healthy discussion, a formal snapshot proposal and forum proposal thread can be created. ### Formal DAO Proposal The DAO proposal is then formally submitted. Initially, only whitelisted veYND holders with at least 500,000 veYND can initiate formal proposals. Interested parties can analyze proposed changes, hold discussions, and gather support. ### Voting Process Once a proposal has been created, token holders vote via the YieldNest DAO platform, built in collaboration with Aragon. The voting period lasts 7 days but will be extended by 3 days if a quorum is reached right before the deadline, ensuring fair participation. ### Execution Once a DAO proposal has passed, a 3-day waiting period is initiated. Users who object to the outcome can withdraw funds or make necessary adjustments during this time. After the waiting period, the YieldNest multi-sig executes the proposal, or work begins if it's not an on-chain action. ### Incentives Allocation Incentive allocations are voted on monthly through a weighted vote, where the percentage of votes received determines the share of incentives allocated to different initiatives. This system mimics the CRV bribing model, but instead of discretionary rewards, incentives are distributed to all eligible users to ensure long-term alignment. veYND holders vote on where to allocate YND incentives, with options including: * MAX LRTs * LRT Strategies * Integrations such as LP pools This process requires a list of potential allocation targets, which could lead to vote markets where participants bribe veYND holders for votes. ### Security Council The Security Council comprises nine members, requiring a 5-of-9 majority for emergency action. Members are elected every six months via an on-chain vote. The Security Council is responsible for mitigating critical risks and can take emergency action without a vote if required. These emergency actions include addressing: * Critical security vulnerabilities that could endanger user funds * Threats to protocol integrity # Governance Process ### Forum Discussion & Temperature Check Before any official proposal is made, proposers can open a temperature check thread to share their ideas and discuss them in the [YieldNest governance forum](https://gov.yieldnest.finance/) . This step helps voters better understand proposals and encourages active governance participation. Anyone can initiate a temperature check discussion. AI Enhancement: AI-driven analytics can summarize discussion threads, highlight key points, and assess community sentiment to provide data-driven insights for voters. This allows for better engagement and ensures proposal improvements before moving to a formal vote. Once the temperature check has facilitated a healthy discussion, a formal snapshot proposal and forum proposal thread can be created. ### Formal DAO Proposal The DAO proposal is then formally submitted. Initially, only whitelisted veYND holders with at least 500,000 veYND can initiate formal proposals. Interested parties can analyze proposed changes, hold discussions, and gather support. ### Voting Process Once a proposal has been created, token holders vote via the YieldNest DAO platform, built in collaboration with Aragon. The voting period lasts 7 days but will be extended by 3 days if a quorum is reached right before the deadline, ensuring fair participation. ### Execution Once a DAO proposal has passed, a 3-day waiting period is initiated. Users who object to the outcome can withdraw funds or make necessary adjustments during this time. After the waiting period, the YieldNest multi-sig executes the proposal, or work begins if it’s not an on-chain action. ### Incentives Allocation Incentive allocations are voted on monthly through a weighted vote, where the percentage of votes received determines the share of incentives allocated to different initiatives. This system mimics the CRV bribing model, but instead of discretionary rewards, incentives are distributed to all eligible users to ensure long-term alignment. veYND holders vote on where to allocate YND incentives, with options including: * MAX LRTs * LRT Strategies * Integrations such as LP pools This process requires a list of potential allocation targets, which could lead to vote markets where participants bribe veYND holders for votes. ### Security Council The Security Council comprises nine members, requiring a 5-of-9 majority for emergency action. Members are elected every six months via an on-chain vote. The Security Council is responsible for mitigating critical risks and can take emergency action without a vote if required. These emergency actions include addressing: * Critical security vulnerabilities that could endanger user funds * Threats to protocol integrity # YieldNest DAO Discussions The formation of the **YieldNest DAO and subDAOs** will be an **iterative and open process** , inviting the entire community to participate. Our goal is to maintain **transparency and clarity** , encouraging all DAO members to join our **governance forum** to share ideas and engage in discussions. We actively support community involvement and will fund **educational initiatives and proactive contributions** whenever possible. \*\*Visit: \*\* [**https://gov.yieldnest.finance**](https://gov.yieldnest.finance/) The YieldNest DAO oversees all YieldNest products, and as these projects grow, they will evolve into their own subDAOs with independent governance and revenue generation, contributing to the ecosystem's long-term sustainability. # YND & veYND Tokenomics YieldNest operates on a two-token model consisting of YND and veYND. veYND is acquired by staking YND. veYND holders earn all protocol revenue through a buyback-and-distribute model, aligning incentives between governance participants and the protocol's long-term growth. The YieldNest governance system is built on Aragon V2, leveraging its framework to strengthen and refine DAO operations continuously. When users stake YND, they start earning yield, which grows alongside their voting power. For detailed information, check the veYND Parameters or ask the community for more info. We love ideas, input, and collaboration. This will be rewarded. Exiting veYND to reclaim YND requires a 30-day queue and a minimum deposit of 42 YND for locking. For those who prefer delegated voting and auto-compounding without the exit queue, liquid lockers, developed in collaboration with [StakeDAO](https://www.stakedao.org/) and [Convex](https://www.convexfinance.com/), will provide an alternative staking solution. These liquid lockers will not be available at launch but will be rolled out over time. veYND holders will have the option to merge or unmerge their positions, offering greater flexibility in governance participation and yield optimization. ## **Complete YieldNest Value Flow & YND/veYND Mechanics** ## **Value Flow Pt. 1: Integrations, Products & SubDAOs** 1. Users deposit assets into the YieldNest ecosystem, where funds are allocated across: * YieldNest Integrations * YieldNest Products * YieldNest subDAOs 2. These assets are deployed into LRT Strategies, where they immediately start generating auto-compounding yields for users, optimized and supported by YieldNest's AI-driven strategy engine. 3. Yield & Fee Generation: * The yield distributor collects returns from LRT strategies. * Fees are dynamically taken per strategy and flow into the fee distributor. ## **Value Flow Pt. 2: Governance, YND & veYND** 1. Incentive gauges, governed by veYND holders, allocate YND across a selected set of whitelisted gauges that are monitored and optimized by YieldNest's AI governance framework in collaboration with Merkl. 2. Governance & Revenue Distribution: * When activated, veYND holders govern LRT strategy fees. Initial distribution is directed to veYND holders, with allocation parameters set by governance and subject to adjustment over time. Treasury and subDAOs may also receive allocations as decided by governance. * Fees collected follow a buyback-and-distribute model, where they are used to repurchase YND, which is then distributed to veYND holders. YieldNest governance can vote to add multiple payout options, for example, enabling yield to be received in various asset types once the module is activated. * YieldNest subDAOs generate additional revenue, which also feeds into this system. 3. YND & veYND Governance Mechanics: * YND holders stake their tokens to receive veYND. * veYND represents governance power, which scales with the lockup period—the more governance power owned, the higher the share of collected fees. * veYND holders vote on key decisions related to fee distribution, integrations, products, and subDAOs, all supported by YieldNest's AI-enhanced governance tools. * veYND holders directly benefit from protocol revenue, making it profitable to stake YND and participate in governance. * For those who prefer delegated voting and auto-compounding without the exit queue, liquid lockers, developed in collaboration with StakeDAO and Convex, will provide an alternative staking solution. These liquid lockers will not be available at launch but will be rolled out over time. veYND holders can merge or unmerge their positions from the liquid locker, providing greater flexibility in governance participation and yield optimization. ## **veYND: Capturing the Value of an Intelligent DeFi Engine** veYND holders directly profit from MAX LRTs, which function as an evolving, intelligent DeFi engine. These AI-enhanced yield aggregators continuously analyze data, discover new strategies, and optimize capital deployment, ensuring that the collective efforts and yield generated by both human and AI-driven decision-making flow back to veYND stakers. MAX LRTs evolve continuously through **YieldNest's autonomous AI strategy system**, which operates 24/7 to identify, test, and propose new strategies. Initially, these strategies are integrated externally, rigorously monitored, and assessed for safety and efficiency. Once validated, they are enshrined within MAX LRTs under the governance of a dedicated subDAO, ensuring optimal execution. This hybrid model — where AI autonomously scouts and oversees strategies while governance fine-tunes parameters — creates a self-expanding system. Over time, MAX LRTs could transition toward full autonomy, redefining yield optimization at scale. [Read the full MAX LRT docs](https://docs.yieldnest.finance/protocol-design/max-lrts) for more info. ## The MAX LRT Growth Flywheel & veYND Profitability As more data is fed into the system, MAX LRTs learn, adapt, and refine their strategies over time. New strategies are first introduced as external integrations, undergoing rigorous testing and monitoring. Only those that demonstrate long-term safety and efficiency are enshrined within the MAX LRT, operating under subDAO governance. The modular and flexible architecture of MAX LRTs ensures that strategies always sync back to their main settlement layer. For example, ynETH MAX (ynETHx) settles on Ethereum L1 but can deploy and integrate strategies across Ethereum L2s or any trustless interoperable chain, optimizing capital efficiency while maintaining L1 settlement assurances. As MAX LRTs autonomously integrate and expand, veYND holders benefit in multiple ways: * All profits and protocol revenue from MAX LRTs are distributed to veYND holders via a buyback-and-distribute model. * The increasing intelligence of MAX LRTs enhances capital efficiency, growing the overall yield potential of the system. * AI-driven strategy optimization ensures continuous improvement, compounding the value captured by veYND holders over time. ## Why Staking YND for veYND is Profitable By staking YND for veYND, holders position themselves at the core of this DeFi engine, benefiting from the AI-driven evolution of MAX LRTs. As the system expands, refines, and automates, the yield flow back to veYND holders increases, making it a highly profitable long-term staking mechanism. This hybrid model of AI automation and governance oversight could ultimately lead to a fully autonomous, self-optimizing financial system, redefining yield generation and risk-adjusted returns at the highest level. 🚀 # YND Token Distribution ## YND Token Distribution ## $YND Tokenomics **Overview** * Token Name: YieldNest DAO * Ticker: YND * Total amount of YND Tokens: 1,000,000,000 * Type: Utility & Governance * Blockchain: Ethereum, BNB, INK (more to announce) [Read the full announcement →](https://medium.com/@yieldnest/yieldnest-ynd-tokenomics-own-govern-earn-7dba54a27960) YND is the governance token of YieldNest, designed to align incentives between participants and the protocol’s long-term growth. The token plays a pivotal role in the ecosystem, enabling governance through veYND and facilitating value accrual via a buyback-and-distribute model. By staking YND, users receive veYND, which grants them voting power and a share of the protocol's revenue. This model ensures that governance participants are deeply integrated into YieldNest’s success. The total supply of YND is strategically allocated to reward the community, incentivize ecosystem growth, and secure long-term protocol sustainability. YND tokens and directly rewarding our supporters. We will continuously buy back $YND and distribute it, expanding and innovating with additional buyback strategies as our ecosystem grows. [Read more about how YieldNest will generate fees →](https://docs.yieldnest.finance/governance-and-tokenomics/ynd-and-veynd-tokenomics) ### **Token Distribution & Vesting Schedule** The token distribution is designed to emphasize community participation and long-term sustainability. The token distribution is structured as follows: **Community & Rewards – 40.94%** * Dedicated to DeFi Partnerships, future Airdrops, potential future Seeds Seasons, Pioneer NFT Program, Programmatic Incentives, and other Community Incentives. * Encourages active participation and long-term growth. * Lock-up: vesting linearly for 84 months * (7 years)\* **Genesis Airdrop - 6.56%** * Allocated to users and partners eligible through our Seeds loyalty program participation. **Private Sale – 18%** * Allocated to completed strategic contributors and partners. * Lock-up: Unlocked at TGE based on prior completed 12-month vesting cycle. **Strategic Round – 2%** * Allocated to newly entered and future strategic contributors and partners. * \*\*Lock-up: \*\* vesting linearly for 36 months *(3 years).* **Team and Advisors – 20%** * Reserved for the core team and advisors who will contribute to YieldNest's long-term success. * **Lock-up:** vesting linearly for 36 months *(3 years)* . **Marketing & Partnerships – 5%** * Allocated to launchpools on strategic platforms * Marketing and public relations initiatives (press, podcasts, and KOLs) * Partner protocol incentives and co-marketing campaigns * Strategic event sponsorships (conferences, hackathons, panels etc.) * Educational content, documentation, video production, and more **Ecosystem & Liquidity – 7%** * Will be converted to Protocol-Owned Liquidity (POL) and transferred to governance control * Allocated to support ecosystem initiatives and on-chain liquidity partners to drive adoption and expand the reach of YND * Used for initial liquidity provisioning, market maker engagement, and treasury management * Supports integrations with DEXs, bridges, and aggregators **Public Sale – 0.5%** * Allocated to IDO platforms that supported YieldsNest early on. ### YND Token Utility YND empowers a diverse set of utilities designed to create ongoing demand and long-term holder value. #### Core Utilities: * \*\*Governance: \*\* Shape the future of YieldNest by voting on protocol improvements, new integrations, and critical DAO decisions. * \*\*Staking (veYND): \*\* Stake your YND for veYND, and earn more rewards, future revenue sharing, and boosted governance voting power. * \*\*Rewards & Incentives: \*\* Actively earn additional YND through liquidity pools, yield farming, and dedicated community events. * \*\*Delegated Governance via Liquid Lockers (via sdYND with StakeDAO): \*\* Delegate your governance power and compound your rewards. Dive deep and participate in YieldNest governance and visit our governance form via the link below, or keep browsing the docs and upgrade your DeFi knowledge. [YieldNest Governance Forum →](https://gov.yieldnest.finance/) # veYND Parameters **How is veYND Used?** veYND is the governance token for YieldNest, enabling users to participate in decentralized decision-making. To mint veYND, users stake YND and receive an NFT that accumulates voting power over time. The longer YND is locked, the greater the voting power, aligning long-term commitment with increased influence. Holding veYND gives users the right to vote on critical protocol decisions, including yield strategies, parameter adjustments, and incentive structures. It also entitles holders to a share of protocol-generated rewards, proportional to their voting power. This model ensures that YieldNest remains governed by its community, with protocol evolution guided by its most engaged stakeholders. **veYND Parameters** These parameters are subject to change through governance proposals voted on by veYND holders, enabling flexible and community-driven protocol evolution. # YieldNest DAO Roadmap The YieldNest DAO and its core contributors have outlined an initial roadmap designed to guide the DAO through its early development. This roadmap serves as a structured path to progressive decentralization, ensuring that the DAO reaches a stage where it is sufficiently decentralized and capable of self-sustained governance. Once this foundation is established, the future direction of YieldNest DAO will be mapped out in collaboration with its community. ## **YieldNest DAO Roadmap** The YieldNest DAO roadmap outlines the key milestones for the protocol's progressive decentralization, ecosystem expansion, and AI-driven governance enhancements. It is designed to guide YieldNest's evolution, ensuring it becomes a fully autonomous, self-sustaining, decentralized organization. The core contributors will lead the early development, establishing the foundation for the DAO. As governance matures, decision-making power will transition to the community, with AI-enhanced mechanisms supporting strategy optimization, governance analytics, and automated treasury management through a hybrid human/AI approach. ### **Q1 2025: Scaling MAX LRTs & Strengthening DeFi Strategies** The focus is on expanding and optimizing YieldNest's core products, including: * Releasing new MAX LRTs, increasing exposure to diverse yield and DeFi strategies. * Enhancing DeFi strategies, improving capital efficiency, and fortifying security mechanisms. These steps will solidify YieldNest's position as the leading next-gen DeFi protocol, preparing the DAO for broader multichain integrations. ### **Q2 2025: DAO Formation & Governance Infrastructure** YieldNest will focus on building the DAO's governance structure and expanding its ecosystem. Key milestones include: * $YND Token Generation Event (TGE): Enabling governance participation and incentive distribution. * Multichain Expansion: Extending YieldNest's reach beyond Ethereum and BNB Chain to other L1 and L2 networks. * Strategic Round Extension: Securing additional funding for long-term development. * YieldNest DAO Formation: Establishing a structured governance model, enabling veYND holders to participate in key decisions. This phase marks the official transition into a decentralized governance model, setting the groundwork for community-led decision-making. ### **Q3 2025: AI-Driven Strategy Optimization & LRT Expansion** Hybrid AI governance and strategy execution will be a core focus: * AI Agents for Strategy Optimization & Hybrid Governance: YieldNest will deploy its AI-driven governance agent to enhance strategy execution, optimize yield generation, provide risk assessments, and support DAO governance processes. * MAX LRT Multichain Strategy Expansion: Expanding MAX LRTs to integrate with more multichain yield and DeFi strategies. Releasing ynUSDx and the first MAX LRT VaaS, ynRWAx — a game changer for DeFi and CeFi, bringing fresh outside capital into DeFi and vice versa. * Release of New MAX LRT Products: Additional LRT strategies will be introduced, offering users more yield exposure and capital efficiency. * Liquid Lockers for veYND Positions: YieldNest will roll out liquid lockers, developed in collaboration with [StakeDAO](https://www.stakedao.org/) and [Convex](https://www.convexfinance.com/), offering an alternative staking solution for users who prefer delegated voting and auto-compounding without the exit queue. Users will also have the flexibility to merge or unmerge veYND positions from liquid lockers, optimizing governance participation and yield strategies. This phase brings YieldNest closer to a fully automated, AI-enhanced DeFi ecosystem where intelligent governance mechanisms support a scalable and long-term focused DAO. ### **Q4 2025: DAO Decentralization & Stablecoin Development** In the fourth quarter of 2025, governance will transition toward further decentralization, with community-led development playing a key role. Major developments include: * $YND DAO Decentralization: Governance authority shifts further into the hands of veYND holders, with the core contributors stepping back as active decision-makers. * Stablecoin Development: The DAO will develop a native stablecoin designed for enhanced capital efficiency within YieldNest's ecosystem and generate income for the YieldNest DAO. * MAX LRT Hardening & Strategy Expansion: Strengthening MAX LRT infrastructure, improving security parameters, and expanding DeFi integrations. This stage represents the maturing phase of the DAO, where the community directs protocol evolution and introduces new DeFi innovations. ### **Q1 2026: Full Stablecoin Launch & DAO Autonomy** YieldNest will reach full DAO autonomy, with governance and strategic decision-making entirely in the hands of the community. The final roadmap milestones include: * Stablecoin Release: The official launch of YieldNest's stablecoin, providing a stable, yield-bearing asset within the YieldNest ecosystem. * Completion of DAO Decentralization: By this point, the YieldNest DAO will function independently, with AI governance tools assisting decision-making and automation. * MAX LRT Hardening & Strategy Expansion: Finalizing security enhancements, strategy refinements, and long-term sustainability improvements for MAX LRTs. This milestone marks the successful completion of YieldNest's initial roadmap, transitioning the protocol into a self-sustaining, community-driven ecosystem with autonomous AI governance, optimized DeFi strategies, and a fully decentralized decision-making structure. 🚀 # Seeds Program ## Thanks everyone! All the current Seed Seasons have concluded. ### Make sure you stay tuned for more exciting updates! The YieldNest seeds program is designed to recognize and reward active engagement from community members and partners. YieldNest believes that early adopters play a significant role in the growth and success of the ecosystem. Therefore, through the seeds program, Yieldms to connect the dedication and support of users to tangible rewards, including participation in future airdrops. The accumulation of seeds is not just a measure of contribution but also a stake in future rewards that YieldNest will distribute. This guide explains the process of earning seeds and how they pave the way for benefits during YieldNest's planned airdrop. YieldNest is committed to ensuring that every action within the ecosystem leads to rewarding outcomes. ## How to Earn Seeds? The simplest way for users to earn seeds is by depositing their assets into any YieldNest products. As YieldNest enhances its network through partnerships and integrations, users will find more ways to accumulate seeds. This includes providing liquidity to DeFi protocols in partnership with YieldNest, referrals, and other opportunities. With our base reward program, you can receive 2 seeds per hour (based on ETH) for every asset you hold. (DeFi partner tokens may receive a different base rate) For example, holding 5 ynETH yields 240 seeds daily (2 Seeds \* 24 hours \* 5 ynETH) If you activate boosts, your base rate will increase. For example, if you have a +100% (2x) boost, you will receive 4 seeds per ynETH per hour. ## Seeds Formula: How Many Seeds Can Users Earn? In order to determine our user’s Seed allocation (Di), we take the base rate (R) of two Seeds, multiplied by the amount of ERC20 token (Ei) deposited and again multiplied by the amount of hours participated (hi). To this base deposit, the user may have various boosts applied (Bi), for a certain amount of hours. The boosts apply only to the base rate and therefore stack but do not compound. The user also is able to receive their referral bonus (f), calculated as being 10% of the referred wallet’s balance. In order to make the formula be unified across all Seed-eligible sources, the base rate (R), balance (Ei), amount of hours (hi) and boost (Bi) can be applied for every applicable boost and have the above formula repeatedly summed in order to get the total number of Seeds for any specific user. By using the above logic, we can therefore get the total number of Seeds (Ptotal)across all eligible sources expressed as such: ∑ *i* : Sums over all users participating in the protocol ∑ *ERC20* : Going over every ERC-20 token staked or locked by all users ERC20 *i* : Representing the ERC-20 token staked by individual user i B *b* : Boost factor applied to a specific pool or to the user. h *i,b* : The number of hours that the i-th depositor has been participating in a specific pool. Note that this can change and vary depending on the number of hours that a certain boost has been active in a certain pool. ∑ \*f \* f *i,f* : The sum of all referral boosts applied to an individual investor i. These are all summed up because they do cause additional Seeds emissions. It is important to note that the way Seeds are calculated needs to be uniform across all of these sources. To that end, this is a mathematical representation of YieldNest’s Seed formula that closely follows the logic behind the code. We have run several tests in order to ensure that the information provided below is closely aligned with actual on-chain Seed calculation. At most we have had a negligible margin of error (<0.09%), due to the way hours are counted and updated across the different pieces of software we have used. Also, with Season 1, YieldNest is enabling transfers. This means that users will be able to accumulate Seeds not just by staking, but also from other activities, such as participating in liquidity pools and other upcoming planned features and campaigns. These are all considered as an ERC20 balance that is standardized in order to be counted the same way within the Seeds formula. ## Seasons We have planned various actions and boosts that will be released over time and are in line with new integrations, features and product development. In this section, you will find an overview of the current seasons with its available actions and boosts. Each season is time-limited, meaning the actions listed there will no longer be available after the epoch ends. > ℹ️ Below you can find an overview of our seasons. Further actions within each season may and will be added. ### Season OG (Epoch 1+2) *Ended August 20th, 2024* * 2 Seeds per hour per restaked ynETH * 5x Special Launch Program Boost - *lasted for 2 times 1 week* * 1.15x [Pioneer NFT Holders Boost](/untitled/yieldnest-loyalty-program/seeds-program) * 1.15x Upgraded point system launch - *2 weeks for ynETH only; pools not included* * Exclusive PrimeStaked Airdrop - *For all Primestaked users that accrued PrimeETH XP points* * 10% [Referral bonus](/untitled/yieldnest-loyalty-program/seeds-program) * 25% One-time referral boost for 30 days for referring or being referred - * Ended\* * [Integrations](/untitled/yieldnest-loyalty-program/seeds-program) ### Season 1 \*August 20th - October 22nd, 2024 \* * 2 Seeds per hour per restaked ynETH, ynLSDe * 1.15x [Pioneer NFT Holders Boost](/untitled/yieldnest-loyalty-program/seeds-program) * 5x Product Launch Boost -> ynLSDe, ynETH - *2 weeks* * 3x Product Launch Boost -> ynLSDe, ynETH - *2 weeks* * 5% Exclusive PrimeStaked Seeds Boost - *For all Primestaked users that migrated to ynLSDe* * 0.33 Seeds per hour per restaked ynBNB * 5x Product Launch Boost -> ynBNB - *4 weeks* * 10% [Referral bonus](/untitled/yieldnest-loyalty-program/seeds-program) * [Integrations](/untitled/yieldnest-loyalty-program/seeds-program) ### Season 2 *Started October 22nd, 2024 - May 28th, 2025* * 2 Seeds per hour per restaked ynETH, ynLSDe * 0.33 Seeds per hour per restaked ynBNB * 1.15x [Pioneer NFT Holders Boost](/untitled/yieldnest-loyalty-program/seeds-program) * Season 2 boost -> 2x for 2 weeks - ynETH, ynLSDe, ynBNB * 10% [Referral bonus](/untitled/yieldnest-loyalty-program/seeds-program) * [Integrations](/untitled/yieldnest-loyalty-program/seeds-program) * 5% Exclusive PrimeStaked Seeds Boost - *For all Primestaked users that migrated to ynLSDe* * YieldNest Max vaults - * MAX vault integration available — see individual vault pages for details\* * Multichain Boost - * Details on the Seeds page\* ## Frequently Asked Questions - FAQ
Details
Details
More opportunities will become available to earn seeds as more integrations and partnerships are introduced, including adding liquidity on external DeFi protocols, utilizing other yield optimization tokens, and more. YieldNest encourages users to stay tuned for updates on its community channels to ensure they don't miss out on these exciting opportunities to boost their seeds: 🌎 [Website](https://www.yieldnest.finance/) 💬 [Discord](https://discord.com/invite/ayAZuQgFaE) 📣 [Telegram](https://t.me/YieldNest) 🐦 [Twitter](https://twitter.com/YieldNestFi) # YieldNest Seeds Disclaimer By participating in any activities promoted by YieldNest or accessed through [www.yieldnest.finance](http://www.yieldnest.finance) (“ **the Website** ”) or any third party apps or websites including but not limited to the 'YieldNest Seeds Program' or any similar initiatives involving the acquisition of ‘Seeds’ (collectively referred to as " **Programs** "), the User acknowledges, understands, and agrees to the terms outlined herein. The User accepts that these Programs are designed for measuring participation and/or engagement with the educational content provided by the Website. The User further acknowledges that Seeds, as determined by YieldNest or the Website from time to time, are non-transferable, do not constitute financial instruments, and are not collateralizable as financial securities. The User acknowledges and agrees that participation in the Programs does not constitute a promise, guarantee, or obligation by YieldNest to convert ‘Seeds’ into any financial instrument and/or financial security. The User explicitly agrees that participation in these Programs and the acquisition of Seeds entail inherent risks and uncertainties, with no guarantees regarding the future value, utility, or functionality of Seeds. The User also agrees to indemnify and hold harmless YieldNest and its affiliates from any claims or liabilities arising from their participation in the Programs or misuse of Seeds. By utilizing the Website, the User indemnifies YieldNest and assumes full responsibility for complying with all applicable laws, regulations, rules, and obligations imposed by the relevant competent authorities with regard to the regulatory treatment of the Programs, Seeds and Website in the User’s respective jurisdiction(s), where the User resides, conducts business, or engages in activities related to the Website. At YieldNest, we strongly uphold the principle of personal sovereignty. Accordingly this document has been prepared solely for the purpose of providing this information to empower the User to conduct its own research and make well-informed decisions. Nothing in this document constitutes legal, financial, investment, or any other professional advice. The content herein should not be relied upon as a substitute for consultation with professional advisors. ## Accuracy and Updates While YieldNest strives to ensure that the information provided in this documentation is accurate and up to date, we make no guarantees about the completeness, reliability, or accuracy of this information. This includes, but is not limited to, information related to seeds distribution for yield optimization, total seeds calculation, seeds breakdown for participating in liquidity pools, individual user’s seed allocation for participating across any number of liquidity pools or any other seed related calculations. Any reliance you place on such information is strictly at your own risk. YieldNest reserves the right to make additions, deletions, or modifications to the content of this documentation and to the formulation or programming of the seeds at any time without prior notice. It is your responsibility to review the information pertaining to seeds, seeds programming and the relevant code for updates. ## Formula and Calculations The information, calculations and formulas contained in this documentation are for general informational and educational purposes only. The User understands and accepts that there may be a margin for error in the calculations and formulas based on a multitude of factors including but not limited to different software utilized for the Programs. ## Liability YieldNest, its officers, directors, employees, and agents will not be liable for any direct, indirect, incidental, special, consequential, or punitive damages arising out of your access to, use of, or reliance on this documentation and Programs. This includes, but is not limited to, any loss of profits, data, or other intangible losses related to the distribution and allocation of seeds, yield optimization of ETH, or participation in liquidity pools. ## Indemnification You agree to indemnify, defend, and hold harmless YieldNest from and against any claims, liabilities, damages, losses, costs, or expenses arising out of or in connection with your use of this documentation or the Programs. YieldNest shall not be liable for any errors, interruptions, disruptions, or delays, nor for any loss or damages incurred by you as a result of using this documentation and engaging with the Programs and the User uses it at their own risk. ## External Links This document and Programs may contain links to third-party websites or services that are not owned or controlled by YieldNest. YieldNest has no control over, and assumes no responsibility for, the content, privacy policies, or practices of any third-party websites or services. ## Beta Stage and Software Risks The YieldNest platform may include components or features in their beta stage, which means they are experimental. The Website, Programs and all related software, including blockchain software and smart contracts, are provided on an "as is" and "as available" basis, without warranty of any kind, either expressed or implied, including, without limitation, warranties that the platform or any related software are free of defects, vulnerabilities, merchantable, fit for a particular purpose, or non-infringing. ## Software Weaknesses Although reasonable efforts are made to ensure that the Website, Programs and related software follow high-security standards, we do not warrant or represent that the Website, Programs or any related software are secure or safe, or protected from phishing, malware, or other malicious attacks. The Website, Programs and related software may contain weaknesses, bugs, vulnerabilities, viruses, or other defects which may have a material adverse effect on the operation thereof or may lead to losses and damages for you, other users, or third parties.The User is responsible for the security of their own devices and any accounts or wallets used in connection with the Programs and Website. YieldNest is not responsible for any unauthorized access to User accounts or wallets. ## Blockchain Network Risks YieldNest interacts with various blockchain networks. Any malfunction, breakdown, or abandonment of such blockchains may have a material adverse effect on the Website and Programs. Advances in cryptography, or technical advances including but not limited to the development of quantum computing, could present risks by rendering ineffective the cryptographic consensus mechanism that underpins the blockchain. The smart contract concept, the underlying software, and software platforms, including blockchain networks, are still in an early development stage and unproven. Although unlikely, blockchains can be attacked, which may result in downtime, consensus split, long reorganization of the chain, 51 percent attack, or other adverse outcomes, each of which may lead to complete loss of your assets on such blockchain network. ## Third-Party Smart Contract Systems YieldNest may derive certain information from third-party smart contract systems, including blockchains, automated market-making (AMM) protocols, oracles, and decentralized exchange smart contract systems and related software in an automated manner, which means such information is not verified. As a result, such information may not be true, complete, timely, accurate, or sufficient. Furthermore, certain functions related to the Programs may be executed by third parties that may not act in a timely or reliable manner, or as expected or intended, or may fail to act, which can lead to inaccessibility of the functionality or partial or complete loss of your respective assets. ## Protocol Risks When interacting with the Website, you may be exposed to certain risks related to the operation and functioning of the protocols it interacts with. The protocols are complex, with many components and functional elements that are risky and experimental. You should not use or interact with any protocols unless you fully understand how they work and the consequences of transactions carried out using them. Information derived from these protocols may not be true, complete, timely, accurate, or sufficient. Certain functions within the Website and Programs may be executed by third parties that may not act in a timely or reliable manner, or as expected or intended, or may fail to act, leading to partial or complete loss of your digital assets.YieldNest does not guarantee that the Programs or any part of the Website will be available at all times or without interruption. ## Value and Volatility The prices of virtual assets, including those related to seeds, seeds distributed for staking and liquidity pools, are extremely volatile and subjective and may have no inherent or intrinsic value. Fluctuations in the price of other assets could materially and adversely affect the value of virtual assets. YieldNest does not guarantee that any virtual assets will retain their original value, as their value depends on factors outside our control. ## Strategy Risks Within the Website and Programs, you may interact with third-party strategies, which are neither controlled nor influenced by YieldNest. The strategies and actions or decisions of third-party strategists may not be profitable or advantageous for you, and you may disagree with them. YieldNest does not endorse any third-party strategies or activities of strategists, and it is your responsibility to evaluate each strategy and the respective strategist's activities. YieldNest is not liable for any acts, failures, or omissions of third-party strategists. Participation in any such strategy, Programs or acquisition of Seeds does not constitute an endorsement of any kind by YieldNest of the User or their activities. ## Theft Risks YieldNest makes commercially reasonable efforts to ensure transactions are secure, but there is no assurance against theft of digital assets due to hacks, cyber-attacks, distributed denial-of-service attacks, errors, double-spend attacks, flash-loan attacks, economic attacks, volatility-based attacks, third-party manipulations, vulnerabilities, or defects in the platform or related software. ## User Interface Certain user interface elements or design decisions on the Website may be confusing, resulting in the execution of unintended actions or transactions. YieldNest is not liable for any unintended actions you may make. It is at your own discretion and risk, and you are solely responsible for any possible damages or losses arising from such use. You are responsible for evaluating the information and materials provided. ## User Acknowledgment By using the YieldNest Seeds Program, you acknowledge that you have read, understood, and agree to be bound by this disclaimer. If you do not agree with any part of this disclaimer, you must refrain from using the YieldNest platform and any related activities. You acknowledge that if you are dissatisfied with the Programs or our Website, products, and/or services, your sole recourse is to discontinue usage of the Website and our products and/or services. # Pioneer Program ## Introducing the Pioneer Program **The YieldNest's \*\*** [**Pioneer Program**](https://www.yieldnest.finance/pioneer) **\*\* rewards the earliest and most devoted members of its community. Pioneers enjoy a permanent 15% Seeds boost for their restaked assets.** YieldNest will offer at least two limited periods to become a Pioneer. However, the qualification requirements will become more strict with each subsequent wave. ## **To qualify:** Wave #1 requirements * Users must deposit within the first 3 weeks after launch. * The minimum yield optimization amount to become a pioneer is 5 ETH. * Users can activate their pioneer status by claiming and minting their Pioneer NFT during the designated period. * Wave #1 eligibility ended June 4th, 2024 23:59:59 UTC time. Exclusive PrimeStaked wave requirements * Users must convert 5+ primeETH to ynLSDe. * Users can activate their pioneer status by claiming and minting their Pioneer NFT after the eligibility period. * Eligibility period started August 28th, 2024 * Eligibility period ending on November 15, 2024 23:59:59 UTC time. Wave #2 requirements * To participate, users must maintain a minimum balance of one or more of the following assets throughout the campaign period: * 5 ynETHx * 25 ynBNBx * 0.15 ynBTCk * Eligible users can claim and mint their Pioneer NFT to activate their Pioneer status after the eligibility period ends. * Eligibility period started February 3, 2025, 0:00 UTC. * Eligibility period ends at TGE. ## \*\*How to claim your Pioneer NFT? \*\* At the end of each wave, you can activate your Pioneer status by claiming and minting your exclusive Pioneer NFT. ### *How to claim:* 1. Become eligible by meeting the above requirements 2. The whitelist for the claim will become available after the end of each wave 3. Claim your NFT by using the same wallet address that you used for your deposit After the end of each wave, we will take a snapshot. Everyone who meets the criteria will be able to mint their Pioneer NFT. The link to claim will be accessible via the [official Pioneers landing page](https://www.yieldnest.finance/pioneer) . ## **Enjoy a 15% permanent boost on your Seeds** After claiming your NFT, the +15% boost will become visible on the Seeds page. This +15% Seed boost will start to accrue after activation of our new deterministic point system, which is based on on-chain events. ## **Upgrade your Pioneer NFT** In the future, you will be able to upgrade your Pioneer NFT and turn it into a unique personal Pioneer NFT with specific rarities, traits, and additional bonuses. ## **Guardians** Participate in YieldNest's growth and ecosystem. After the launch of the [YieldNest DAO](https://docs.yieldnest.finance/governance-and-tokenomics/yieldnest-dao) , we will start our Guardian program. For our well-respected Guardians, we will provide many advantages within our ecosystem. Benefits, such as more voting power, the right to create proposals, special events, and much more. The exact qualification criteria for Guardians will be announced before the launch of the YieldNest DAO. Those who have a Pioneer NFT will have a streamlined process to become a Guardian. Make sure you stay up-to-date by following our channels so you don't miss out! 🌎 [Website](https://www.yieldnest.finance/) 💬 [Discord](https://discord.com/invite/ayAZuQgFaE) 📣 [Telegram](https://t.me/YieldNest) 🐦 [Twitter](https://twitter.com/YieldNestFi) # ynRWAx Referral Program The ynRWAx referral program rewards those who help expand the network. If you know people who’d benefit from stronger yields and exposure to RWAs, invite them in. Let’s grow the ecosystem together and earn worthwhile rewards along the way. The referral program starts on October 15th, 2025 and will end on March 31st, 2026. Referrals will be valid during this period of time or up until ynRWAx reaches $50M in TVL. ### How It Works 1. **Generate your link:** Connect your wallet to the [YieldNest App](https://app.yieldnest.finance) , browse the [ynRWAx referral page](https://app.yieldnest.finance/ynrwax-referrals) , and click on the “Copy Referral Link” button. 2. \*\*Refer New Users: \*\* Share your referral link with your friends, community, or anyone interested in earning rewards on USDC. They will need to use your referral link or code and make a USDC deposit to kickstart your rewards. 3. **Earn Rewards:** You both receive rewards! We’ll reward up to 1.5% bonus APY on your friend's deposits during the referral program, and split it equally between the two of you. 4. **Track Your Success:** Your referral dashboard gives you a transparent, real-time view of your success. Easily monitor the total amount deposited by your referrals, see how many friends have joined, view your pending rewards, and know when they will be available to claim. 5. **Rewards Distribution:** Rewards are paid in USDC. Snapshot will be taken at the end of the referral program. The airdrop will go live within 21 days after the program ends. Once available, you have 30 days to claim your rewards. After that, they will no longer be available. ### Referral APY Tiers ### Additional Details * A depositor is considered your referee if your referral code or link was used when they deposited USDC into ynRWAx. * Only USDC deposits into ynRWAx are eligible for rewards. If users don’t hold any USDC, users must convert to USDC before depositing. * Only deposits above $100 USDC contributing to ynRWAx TVL are eligible. * The more you refer, the more you earn. * Eligible DeFi integrations listed on the referral page will also count towards referral rewards. * The total duration of the program is 90 days, or $50 MIL TVL is reached. * Snapshot will be taken at the end of the referral program. The airdrop will go live within 21 days after the program ends. Once available, you have 30 days to claim your rewards. After that, they will no longer be available. * Once you use a referral code, you are locked into that referee for the duration of the program. * Referrers with fraudulent or suspicious activities will be disqualified from the referral program. * The referral program can be modified, suspended, or terminated without notice. # YieldNest Risk Team **YieldNest Risk Team is an independent risk and research group operated by LlamaRisk. Our specialists have developed expertise in conducting comprehensive risk analysis for DEXs and DeFi protocols. We specialize in evaluating risk across a broad spectrum of crypto assets, including stablecoins, LSTs, RWAs, and advanced DeFi yield strategies.** As yield optimization and DeFi strategies introduce new layers of complexity, risk dimensions evolve accordingly. Our role is to conduct in-depth research into direct and indirect risks, assist YieldNest in mitigating various threats, and strategically curate YieldNest-endorsed yield and DeFi strategies. With the rapid development of new DeFi primitives and yield optimization integrations, innovative proofs of concept continue to emerge across categories such as sidechains, data availability layers, virtual machines, keeper networks, oracles, bridges, threshold cryptography, and trusted execution environments. Our evaluation framework addresses the technological and operational risks associated with these categories. We assess smart contract vulnerabilities, slashing risks due to code errors, de-pegging threats, rehypothecation risks, and validator failure probabilities that could impact network-wide security. Additionally, we analyze risks related to validator collusion, centralization in yield decision-making, and counterparty risks, including solvency and legal structures. This comprehensive risk assessment is critical for securing systemic resilience and ensuring the optimal deployment of YieldNest’s yield and DeFi strategies. **Twitter:** **Research blog:** # Audits & Security Measures YieldNest prioritizes security at every level, partnering with top-tier crypto security firms to rigorously audit our smart contracts and mitigate potential risks. Each code release undergoes multiple layers of testing and review by both internal and external auditors to ensure reliability. For major releases, we conduct multiple audits to provide an extra layer of assurance. Currently, we are working with Zokyo, Composable Security, and ChainSecurity to uphold the highest security standards. Additionally, YieldNest runs a [bug bounty program](https://docs.yieldnest.finance/security/audits-and-security-measures/bug-bounty) with Immunefi, which will continue to expand as we release new products. We also leverage [HyperNative](https://www.hypernative.io/) , an AI-driven threat detection and automated incident response system, ensuring real-time security monitoring. ## Security Measures YieldNest implements a multi-layered security approach to safeguard user funds and ensure protocol integrity: ✅ **Non-Custodial Design** – YieldNest operates on a non-custodial model, minimizing counterparty risk. ✅ **Continuous Auditing** – Smart contracts undergo regular audits to minimize vulnerabilities and contract risks. **✅ Minimized Slashing Risk** – YieldNest exclusively collaborates with thoroughly vetted professional operators under strict security conditions to reduce slashing exposure. **✅ Code Security** – We prioritize robust code security and encourage users to report any bugs or incidents directly via . \*\*✅ Real-Time Threat Detection \*\* – HyperNative’s AI-driven security ensures continuous threat monitoring and automated incident response. YieldNest remains committed to security, transparency, and proactive risk management, ensuring the safest possible experience for all users. ## Audits ## Full Code audit of the YieldNest Protocol 15-04-2024 Full system with a focus on ynETH & ynLSD. ## Protocol Integration Update Review 07-05-2024 Full system review with a focus on protocol integration updates. ## ynETH/ynLSDe 09-08-2024 Audited by [Chain Security](https://chainsecurity.com/) . ## MAX LRT review 12-12-2024 Audited by [Zokyo](https://zokyo.io/) . ## ynBTCk strategy review 08-01-2025 Audited by [Zokyo](https://zokyo.io/) . ## MAX LRT, ynBTCk & ynBNBx review 09-01-2025 Audited by [Composable Security](https://composable-security.com/) . ## ynETH & ynLSDe Slashing Protection Upgrade 04-02-2025 Audited by [Zokyo](https://zokyo.io/) . ## *YieldNest Max Vault Withdrawer and Lib Logic Audit Report 13-02-2025* Audited by NFR Audits. ## *YieldNest Default Asset Index Audit Report 12-05-2025* Audited by NFR Audits. ## *YieldNest clisBNB Strategy Audit Report 17-05-2025* Audited by NFR Audits. ## *YieldNest ynETH Slashing Upgrade 28-04-2025* ## *YieldNest ynLSDe Slashing Upgrade 28-04-2025* *YieldNest ynLSDe Slashing Upgrade 28-04-2025* ## *YieldNest Flex Strategy Audit 07-2025* ## YieldNest MetaHook Audit 09-2025 ## YieldNest Performance fees 09-2025 ## YieldNest Hooks Audit 09-2025 # Bug Bounty YieldNest offers rewards for reporting low-to-critical vulnerabilities on all levels of its technology stack, from smart contracts to websites and applications. Immunefi is an official bug bounty partner with YieldNest. We value and respect white hat hackers and always strive to maintain an open and rewarding dialogue if bugs are found. Our bug bounty program is monitored 24/7. Please send any bug reports using the link below. * [https://immunefi.com/bug-bounty/yieldnest](https://immunefi.com/bug-bounty/yieldnest/) # Deployment Addresses ## Deployment Addresses This documentation section offers a comprehensive overview of all deployed contracts. We strive to maintain the accuracy and completeness of these addresses, but **please be aware that there may be instances where the information becomes outdated**. > ℹ️ System audits and technical specifications: [Audits](https://docs.yieldnest.finance/security/audits-and-security-measures) Mainnet app URL: [**https://app.yieldnest.finance/**](https://app.yieldnest.finance/) ### YND | Chain | Address | | --------- | ---------------------------------------------------------------------------------------------------------------------------------- | | ETH L1 | [`0x7159cc276D7d17Ab4b3bEb19959E1F39368a45Ba`](https://etherscan.io/address/0x7159cc276D7d17Ab4b3bEb19959E1F39368a45Ba) | | Optimism | [`0xDB8E54f39aff243B25A41e4747957eD517aF0511`](https://optimistic.etherscan.io/address/0xDB8E54f39aff243B25A41e4747957eD517aF0511) | | Arbitrum | [`0xDB8E54f39aff243B25A41e4747957eD517aF0511`](https://arbiscan.io/address/0xDB8E54f39aff243B25A41e4747957eD517aF0511) | | BNB Chain | [`0xDB8E54f39aff243B25A41e4747957eD517aF0511`](https://bscscan.com/address/0xDB8E54f39aff243B25A41e4747957eD517aF0511) | | Berachain | [`0xDB8E54f39aff243B25A41e4747957eD517aF0511`](https://berascan.com/address/0xDB8E54f39aff243B25A41e4747957eD517aF0511) | | Base | [`0xDB8E54f39aff243B25A41e4747957eD517aF0511`](https://basescan.org/address/0xDB8E54f39aff243B25A41e4747957eD517aF0511) | ## Max Vaults ### ynETHx | Contract | Address | | ----------------- | ----------------------------------------------------------------------------------------------------------------------- | | ynETHx (Ethereum) | [`0x657d9ABA1DBb59e53f9F3eCAA878447dCfC96dCb`](https://etherscan.io/address/0x657d9ABA1DBb59e53f9F3eCAA878447dCfC96dCb) | ### ynBNBx | Contract | Address | | ------------------ | ---------------------------------------------------------------------------------------------------------------------- | | ynBNBx (BNB Chain) | [`0x32C830f5c34122C6afB8aE87ABA541B7900a2C5F`](https://bscscan.com/address/0x32C830f5c34122C6afB8aE87ABA541B7900a2C5F) | ### ynUSDx | Contract | Address | | ----------------- | ----------------------------------------------------------------------------------------------------------------------- | | ynUSDx (Ethereum) | [`0x3DB228FE836D99Ccb25Ec4dfdC80ED6d2CDdCB4b`](https://etherscan.io/address/0x3DB228FE836D99Ccb25Ec4dfdC80ED6d2CDdCB4b) | ### ynRWAx | Contract | Address | | ----------------- | ----------------------------------------------------------------------------------------------------------------------- | | ynRWAx (Ethereum) | [`0x01Ba69727E2860b37bc1a2bd56999c1aFb4C15D8`](https://etherscan.io/address/0x01Ba69727E2860b37bc1a2bd56999c1aFb4C15D8) | ### STAK | Contract | Address | | --------------- | ----------------------------------------------------------------------------------------------------------------------- | | STAK (Ethereum) | [`0xD1573de52fFF44dd92D275e20Fdab0296CCFF141`](https://etherscan.io/address/0xD1573de52fFF44dd92D275e20Fdab0296CCFF141) | ## nLRTs and LRTs ### ynETH | Contract | Address | | ---------------- | ----------------------------------------------------------------------------------------------------------------------- | | ynETH (Ethereum) | [`0x09db87A538BD693E9d08544577d5cCfAA6373A48`](https://etherscan.io/address/0x09db87A538BD693E9d08544577d5cCfAA6373A48) | ### ynLSDe | Contract | Address | | ----------------- | ----------------------------------------------------------------------------------------------------------------------- | | ynLSDe (Ethereum) | [`0x35Ec69A77B79c255e5d47D5A3BdbEFEfE342630c`](https://etherscan.io/address/0x35Ec69A77B79c255e5d47D5A3BdbEFEfE342630c) | ### ynBNB | Contract | Address | | ----------------- | ---------------------------------------------------------------------------------------------------------------------- | | ynBNB (BNB Chain) | [`0x304B5845b9114182ECb4495Be4C91a273b74B509`](https://bscscan.com/address/0x304B5845b9114182ECb4495Be4C91a273b74B509) | ### ynBTCk | Contract | Address | | ------------------------- | ---------------------------------------------------------------------------------------------------------------------- | | ynBTCk (BNB Chain) | [`0x78839cE14a8213779128Ee4da6D75E1326606A56`](https://bscscan.com/address/0x78839cE14a8213779128Ee4da6D75E1326606A56) | | ynBTCk Viewer (BNB Chain) | [`0x68589adc7687A23Ff2B06fb032b997f09B44Ed5d`](https://bscscan.com/address/0x68589adc7687A23Ff2B06fb032b997f09B44Ed5d) | ## Testnet Addresses ### Holesky Contract Addresses | Contract | Address | | -------- | ------------------------------------------------------------------------------------------------------------------------------- | | ynETH | [`0x82915efF62af9FCC0d0735b8681959e069E3f2D8`](https://holesky.etherscan.io/address/0x82915efF62af9FCC0d0735b8681959e069E3f2D8) | | ynLSDe | [`0xA5E9E1ceb4cC1854d0e186a9B3E67158b84AD072`](https://holesky.etherscan.io/address/0xA5E9E1ceb4cC1854d0e186a9B3E67158b84AD072) | | ynETHx | [`0x706EED02702fFE9CBefD6A65E63f3C2b59B7eF2d`](https://holesky.etherscan.io/address/0x706EED02702fFE9CBefD6A65E63f3C2b59B7eF2d) | | ynUSDx | [`0xd9029669BC74878BCB5BE58c259ed0A277C5c16E`](https://holesky.etherscan.io/address/0xd9029669BC74878BCB5BE58c259ed0A277C5c16E) | | ynRWAx | [`0xc2387EBb4Ea66627E3543a771e260Bd84218d6a1`](https://holesky.etherscan.io/address/0xc2387EBb4Ea66627E3543a771e260Bd84218d6a1) | # Roles ## Roles ## Ethereum Mainnet ### Ethereum Mainnet Multisigs ### BNB Mainnet Multisigs # How to Deposit ### **How to deposit with YieldNest** Yield Optimization with YieldNest is designed to be seamless, allowing users to optimize their yield by participating in DeFi strategies within MAX LRTs. By depositing assets such as ETH, BTC, BNB, or stablecoins into their respective MAX LRTs, users gain exposure to multiple underlying LRT Strategies without the need for manual allocation. YieldNest automates the entire process, dynamically reallocating assets across DeFi yield strategies while ensuring Layer 1 settlement guarantees. This approach maximizes capital efficiency and yield optimization while maintaining security through real-time risk management. **Steps to deposit** 1. **Deposit** your assets (e.g., ETH, BTC, or BNB) into the respective MAX LRT. 2. **Receive** MAX LRT share tokens (e.g., ynETHx, ynBTCx, ynBNBx) representing your proportional stake. 3. **Earn** continuous, auto-compounded rewards from staking, DeFi strategies, and additional incentives such as airdrops. 4. **Withdraw or Redeem** your assets anytime by unstaking your MAX LRT holdings. For a step-by-step walkthrough, watch our detailed **video guide** : ▶️ [How to deposit with YieldNest](https://www.youtube.com/watch?v=dSgip7PVBqk\&t=335s\&ab_channel=YieldNest) For more details on our mainnet launch and how to participate, read our **official article** : 🔗 [Official YieldNest Launch & ynETHx on Mainnet](https://medium.com/@yieldnest/official-yieldnest-launches-yneth-on-mainnet-02d489376e79) # Gauge Proposals This guide is designed for partners and community members who wish to propose new gauges on [dao.yieldnest.finance](https://dao.yieldnest.finance/) . It explains: 1. Why gauges matter – the tokenomics benefits for you and for YieldNest. 2. How to participate – the step-by-step process to submit and activate a gauge proposal. 3. Where to find templates – links to ready-to-use proposal formats. ## 1. Why Gauges Matter ### What is a Gauge? A gauge is a smart contract that distributes YND emissions to a specific pool, vault, or strategy. veYND and sdYND-gauge token holders vote on gauges every 2 weeks. Voting periods last 7 days. The results of the gauge votes determine where emissions go for the following Epoch, ensuring incentives are community-driven. ### Why Propose a Gauge? * Boost Liquidity: Direct emissions to your DeFi opportunity to attract liquidity. * Attract Users: More rewards = higher APR → more participants. * Strengthen Integration: Position your protocol as part of the YieldNest ecosystem. ### Tokenomics Flywheel Liquidity → more rewards → stronger utility → more participants. Gauges are the mechanism that powers this cycle. ## 2. How to Propose a Gauge on YieldNest DAO ### Step 1: Preparation * Identify the pool or opportunity you want to incentivize with YND (e.g., ynETHx-ETH, ynBNBx-BNB). * Ensure it passes security checks (audits, reliable contracts). * Prepare key details: addresses, tokens, expected benefits. ### Step 2: Forum Proposal * Post your proposal on [gov.yieldnest.finance](https://gov.yieldnest.finance/) . * Use the ready-made forum template provided in the post creation. * Fill in the template accurately and completely to help the community understand the opportunity. ### Step 3: Governance Vote * The community will share their opinions on the proposal and informally vote in the forum to show interest. * If there is enough interest, a core DAO member will create an official DAO proposal in Snapshot where veYND holders and sdYND-holders can officially vote on the proposal. * Proposals will be available for voting at: * veYND/sdYND-gauge holders vote Yes / No / Abstain. * If passed, the gauge is approved. ### Step 4: Activation * A core DAO member will create a gauge that is approved after a DAO vote. * Once the Gauge is deployed in the DAO, it will be available for voting the following epoch. ### Step 5: Incentivization & Growth * Market your gauge to the community to attract votes and liquidity to your opportunity. * Track performance (TVL, APR, votes) and adjust as needed. # Key Terms ## YieldNest Key Terms **MAX LRTs** MAX LRTs are AI-driven, composable yield optimization assets that unify multiple yield sources into a single, capital-efficient token. These assets dynamically rebalance funds across multiple LRT Strategies, optimizing risk-adjusted returns while maintaining Layer 1 settlement assurances. They serve as the top-level vaults, allocating capital across underlying LRT Strategies for optimal performance. **LRT Strategies** LRT Strategies are the underlying yield-generating mechanisms powering MAX LRTs. While MAX LRTs aggregate multiple strategies, some LRT Strategies can be accessed in isolation via a public interface, giving advanced users direct exposure to a specific yield model. * Better Risk Management: MAX LRTs allocate funds dynamically, allowing for tailored risk-adjusted strategies. * Isolated Exposure: Some LRT Strategies offer standalone access for users seeking exposure to specific opportunities. * Fee Structure: Fees are only charged at the strategy level, ensuring MAX LRTs remain fee-free. ## **Yield Optimization & Shared Security Protocol Terms** **Curated RA Baskets** A dynamically curated basket that provides balanced exposure to pre-selected Isolated RA Categories. These baskets ensure diversification across multiple deposit applications (RAs) by selecting specialized node operators for optimized security and yield. **Isolated RA Categories** A focused approach to RA yield optimization, where node operators only validate specific RAs, maximizing potential rewards while mitigating risk. The YieldNest Strategy Manager, governed by the YieldNest DAO, ensures optimal allocation within these isolated DeFi strategies. **deposit Application (RA)** Any system that requires distributed validation and pooled cryptoeconomic security, including: * Sidechains * Data availability layers * New virtual machines * Keeper networks * Oracle networks * Bridges * Threshold cryptography schemes * Trusted execution environments **RA Developer** A development team that builds and maintains an RA service. **Cryptoeconomic Security** A security model that leverages economic incentives and cryptographic verification to ensure network integrity and proper function. **Delegation in Shared Security Protocols** Restakers delegate their assets to third-party operators, who run off-chain service modules instead of operating software themselves. **Operator** Entities that register in a shared security protocol, secure restaked assets, and validate RAs. Operators can accept delegated stakes and opt into specific RA services. **Yield Optimization** A mechanism where Ethereum stakers reuse their staked ETH or LSTs to provide additional security to RAs. Stakers delegate capital to Operators in exchange for yield optimization rewards. **LST Yield Optimization** A yield optimization method where LST holders transfer their Liquid Staking Tokens (LSTs) into a shared security protocol. **Native Yield Optimization** A yield optimization approach where Ethereum stakers natively deposit ETH by redirecting withdrawal credentials to a shared security protocol. **On-Chain Slashing Contract** A contract that enforces penalties on operators for misbehavior, maintaining RA integrity. **Pooled Security via Yield Optimization** A security model where multiple parties combine restaked ETH/LSTs to provide modular security to multiple RAs. **Quorum & Quorum Threshold** * **Quorum** : A grouping of strategies used by an RA for security enforcement. * **Quorum Threshold** : The minimum stake percentage and operator responses required to maintain quorum security. **Restaker** An individual who restakes native ETH or LSTs into a shared security protocol. **Yield Optimization Points** A metric used to measure yield optimization contributions, calculated in ETH per second. **Stake** The ETH amount delegated to the current set of Operators. ## **Security & Risk Management in MAX LRTs** **Guard Validation Engine** The Guard Validation Engine secures MAX LRT transactions by: * Enforcing whitelist-based rule execution to prevent unauthorized actions. * Identifying risks in real time using AI-driven monitoring. * Ensuring strict access control, customizable validation logic, and fail-safe transaction processing. **HyperNative Threat Detection** MAX LRTs integrate HyperNative's security monitoring, which: * Detects protocol risks, threats, and anomalies in real time. * Triggers automated mitigation mechanisms before threats materialize. * Ensures continuous security optimization across all active strategies. **Automated Rebalancing & Exit Liquidity** * Dynamic asset reallocation optimizes capital efficiency. * On-chain liquidity buffers ensure frictionless exits, even in volatile conditions. * Automated incident response ejects at-risk assets from compromised strategies. ## **YieldNest Product & Governance Terms** **YieldNest DAO** The governing entity responsible for allocating funds, managing strategies, and evolving MAX LRTs over time. As governance decentralizes, each MAX LRT will transition into a SubDAO, allowing for independent strategy management. **SubDAO** A governance entity that manages a specific MAX LRT, enabling: * Independent parameter adjustments based on market conditions. * Strategic risk assessments and integrations. * AI-assisted voting mechanisms for governance. **YieldNest Strategy Manager** A modular framework that dynamically optimizes capital deployment across: * DeFi strategies * DeFi integrations * Liquidity provisioning models **Buffer Strategy** An ERC-4626-compliant liquidity reserve ensuring: * Instant access to liquidity for withdrawals * Efficient capital deployment across DeFi & yield optimization ## **Withdrawals in Shared Security Protocols** * **Full Withdrawals** : Withdraw 32 ETH principal + staking rewards. * **Partial Withdrawals** : Withdraw staking rewards only, maintaining principal in yield optimization. # Logo & Styleguide ## Logo & Styleguide ## 👉👉 [*V3.0 Feb 2025 Google Drive*](https://drive.google.com/drive/folders/1Sy1dPJHk4_CchkJZGK5FMg5k3e2S0Ndr) 👈👈 **Brand Style Guidelines and Assets** ### Logo mark PNG ### Logo mark PNG transparent ### **YieldNest Logo transparent BG** ### **YieldNest Logo with White BG** ### **YieldNest Logo with BG** ### YieldNest Profile Pics ### Favicons ### Logos SVG ### Token Logos SVG ### MAX LRTs Token Logos SVG ### \*\*YieldNest Brand Style Guidelines & Assets \*\*