FAQ

General FAQ

What is YO?

YO is your multi-chain yield optimizer, continuously rebalancing your assets across DeFi to deliver the best risk-adjusted yield.

How does YO work?

When you deposit, YO allocates your assets to the highest-yielding pools across multiple chains, optimizing yield and managing rebalancing for the vault. Allocations are adjusted based on pool risk using Exponential.fi's trusted ratings. The underlying pool listings are transparent and can be viewed on the vault page.

What makes YO different?

YO never stops hunting. YO scans the entire DeFi ecosystem, across chains and protocols, to find the best risk-adjusted yield for your assets. It continuously adds new opportunities and auto-rebalances across pools to keep your yield optimized.

Why does YO have superior yields?

YO looks for all the pools within a strategy and is asset-, protocol- and chain-agnostic: e.g. yoBTC can allocate cbBTC or tBTC, on Morpho or Aave, on Base or Ethereum.

YO optimizes yield on a risk-adjusted basis by investing new deposits in the most attractive yields and redeeming withdrawals from the least attractive yields, on a risk-adjusted basis.

YO automates strategies you cannot perform on your own, like continuously moving to the highest tick to provide liquidity to cbETH-wETH on Aerodrome, or performing a carry trade on BTC to earn higher yields.

How does vault allocation work?

Vault allocation consists of two key components: underlying pools and target allocation. The target allocation defines how assets are distributed across these pools, ensuring diversification while maximizing risk-adjusted yield.

How is the YO yield calculated?

Yield is calculated as the weighted average of the yields from the underlying pools within a vault and considers any idle assets.

Can I build on YO?

Yes! Hit us up on Discord or Telegram to know more about what you want to build and explore partnership opportunities.

Vaults FAQ

How does the rebalancing of pools and allocation work?

Each yoVault has a target allocation of pools, which is a subset of all the whitelisted pools for the vault. Every day, the protocol calculates the optimal allocation based on the existing pools' risk rating and trending yield. The protocol then divests assets from the least attractive pools and invests those in the higher yielding ones.

How are new protocols and chains selected for integration? Who does this?

The YO team, together with the YO community on Telegram and Discord, actively monitors the DeFi ecosystem to identify attractive yield opportunities, across all protocols and chains. Each opportunity is evaluated based on factors such as the sustainability of its yield source, its risk rating, and the efficiency of capital flows in and out of the position.

When a high-quality opportunity is identified, the development team is responsible for integrating the relevant protocol or chain into the YO vault infrastructure. Once integrated, the algorithm automatically allocates new deposits to the opportunity, but only if it offers the most attractive risk-adjusted return at that time.

Looking ahead, YO’s governance will play a more active role by voting on which pools and protocols should be prioritized for integration. The algorithm will continue to decide where capital is allocated and may choose not to allocate funds to a governance-approved opportunity if it doesn't meet performance or risk thresholds. Governance is not yet active but is planned for a future phase of the protocol.

How often are the vaults rebalanced?

Vaults are rebalanced for the optimal risk-adjusted yield on a daily basis.

How do you weigh yield vs risk?

YO uses Exponential.fi's risk ratings to quantify pool risk. Each rating has a quantitative score that represents the probability of the pool losing all of its value. All pools' APYs are weighted against their probability of a total wipeout and that results in a risk-adjusted yield for each pool. The YO algorithm then finds the allocation that maximizes the risk-adjusted yield of the vault.

How are gas costs, bridging fees and other costs handled?

At the moment, the Protocol is sponsoring gas fees. All of the other costs of the vault are socialized among depositors. The optimization algorithm does take costs into consideration to avoid unnecessary transactions on a daily basis. This means that even if one pool is particularly high-yielding on one day, the protocol will not rebalance towards that pool automatically to avoid incurring bridging and trading fees unnecessarily. Once a trend has been confirmed, the vault is rebalanced.

This approach makes yield farming more efficient for you as an individual, given that keeping tabs on all of these costs, risks and pools is really a full-time job and that's why YO exists.

Are the contracts audited?

Yes! You can find a link to our audits here

Can I instantly withdraw my funds? Are there any lock-up periods?

The yoVaults keep a % of their assets idle so that you can redeem your yoTokens instantly. When you want to redeem a larger portion of the vault's assets, your withdrawal will be queued and may take up to 24 hrs to execute.

In those cases, your yoTokens will be burnt and as soon as the protocol redeems assets from the existing positions, you will receive your assets in your wallet automatically without having to come back to claim them.

yoTokens FAQ

What are yoTokens?

Each Vault has a dedicated strategy, or yoToken. yoETH is investing in yield strategies based on ETH. yoBTC is investing in yield strategies based on BTC. When you mint yoTokens, you are entering at a specific yoToken <> asset exchange rate and that rate increases over time. You don't have to claim yield or do anything, your assets grow automatically with the protocol. The yoTokens you receive after depositing an asset in the vault represent your share in the vault.

Which wallets are compatible with yoTokens?

Any wallet that supports ERC20 tokens is compatible with yoTokens. If you need to manually import the token into your wallet, please check the list of token addresses

How do yoTokens generate yield?

yoTokens increase in value relative to their underlying asset as yield accrues. Yield accrues through the various underlying pools and investment strategies that the vault is investing in. The yield accrues to all participants in the vault proportionally to their share in the vault while they are holding the yoTokens.

Can I use yoTokens in DeFi?

Yes! yoTokens are compatible with the ERC-4626 and ERC-20 standards so anyone can build using yoTokens. We are working to bring native DeFi integrations for yoTokens. Stay tuned in our X, Discord, or Telegram communities.

Points program FAQ

What's the purpose of points?

The Points program is designed to fairly recognize and reward users whose actions help grow and strengthen the YO protocol. It serves as a transparent and merit-based reward system that highlights meaningful contributions, from early adoption to ecosystem expansion.

The program launched with a simple model that rewards early depositors based on how much TVL they contributed and how early they joined. Over time, it will expand to recognize other valuable behaviors, such as referring new users or increasing protocol usage through DeFi integrations, like using yoVault tokens in lending markets, AMMs, or other interest rate protocols.

When does the current season end? How many seasons will the points program have?

The current season of the Points program is expected to run at least through the end of summer 2025. However, no final decision has been made about when it will end or how many seasons there will be. The team is keeping the program flexible and is open to input and contributions from the community to help shape its evolution.