What is YO?

YO (Yield Optimizer) is a protocol designed as an index of the best yield-generating pools for a desired asset exposure. The protocol automatically allocates deposits to the highest risk-adjusted yield opportunities across multiple protocols and blockchains and algorithmically rebalances positions to optimize returns while maintaining diversification and risk management. By abstracting away the complexities of yield farming, YO enables users to earn efficiently without the need to actively chase yield.

How does YO work?

Users deposit assets into YO vaults and receive yield-bearing yoTokens (e.g. yoETH), which accrue value over time as yield is generated from the underlying investments. When users deposit assets into YO, the protocol allocates them to the highest-yielding pools across multiple protocols based on Exponential.fi’s trusted risk ratings. The vaults are transparently structured, allowing users to see the underlying pool allocations. YO continuously rebalances allocations to optimize yield while considering factors like liquidity, risk, and market conditions. The yield is calculated as a weighted average of the returns generated by the vault’s underlying pools, factoring in any idle assets. YO actively reallocates assets to maintain optimal returns while ensuring efficient risk exposure and capital management. Users can redeem their yoTokens at any time, depending on liquidity buffers and cross-chain withdrawal mechanisms.

What makes YO different?

YO eliminates the need for manual yield chasing by offering chain and protocol abstraction, ensuring the best risk-adjusted yields with minimal user intervention. Unlike Yearn, which primarily optimizes yield within a single chain and relies on predefined vault strategies, YO aggregates and rebalances yield across multiple blockchains dynamically. Compared to Tokemak, which focuses on liquidity provisioning for decentralized exchanges (DEXs), YO optimizes returns across lending, staking, and structured yield products, providing broader diversification. Unlike Morpho, which only optimizes for risk amongst its own lending markets, YO optimizes for risk-adjusted yield across multiple protocols. By aggregating yields across protocols, handling rebalancing, and factoring in risk in real-time, YO provides a streamlined and capital-efficient way to earn without the complexities of managing individual positions.