YieldNest - DeFi's Capital Efficiency Engine: What You Need to Know
$YND TGE, Yield Opportunities, & More
Right now is the perfect time to sit back and collect yield. DeFi remains the second leading narrative by mindshare. As markets trade within a range with no clear indication of a breakout, and with new onchain primitives springing up across chains, it’s a good time to explore some of the opportunities currently available.
One protocol that might be interesting to new and seasoned farmers alike is YieldNest. YieldNest has quickly grown to over $235M in TVL, surging 10x in the month of March alone. Essentially, YieldNest aims to provide users with maximized earning opportunities on core DeFi assets, leveraging restaking & various protocol incentives to achieve this core premise.
In today’s edition, we’ll discuss some of the opportunities present on the YieldNest platform, the imminent $YND TGE, and more…
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What YieldNest has to Offer
YieldNest looks to go beyond what is currently accessible with restaking and provide a product that makes LRTs as capital efficient as possible. The team has adopted a dual-focus strategy: adapt to enable current yield opportunities by using DeFi while simultaneously building to accommodate for more widespread adoption of restaking. This way, YieldNest has strategically positioned itself to create immediate value while maintaining optionality for future, more advanced restaking integrations once all infrastructure is live and AVSs go live.
YieldNest’s dual focus can be clearly seen in its product suite, particularly with the MAX LRTs. These tokens represent claims on actively managed yield strategies while maintaining the capability to integrate with restaking protocols as the ecosystem matures.
For example, while ynETH serves as YieldNest’s base Ethereum restaking token, ynETHx is an enhanced version with greater yield. This MAX LRT allocates assets across multiple yield sources such as L2 yield farms, LSDfi strategies, in addition to base EigenLayer yield. This delivers risk-adjusted, auto-compounding returns without requiring users to manage allocations manually.
Right now, the majority of protocol TVL is actually attributed to BTC asset deposits, even though MAX LRTs are not yet available for BTC derivatives. ynCoBTCk is the leading stake pool, allowing users to earn a base yield as well as YieldNest seeds and Kernel points. Users can even earn additional yield by depositing ynBTCk on Thena.
Overall, the team behind YieldNest believes restaking can be leveraged to optimize liquidity and ROI by actively redeploying staked assets into multiple on-chain strategies—all without sacrificing the base layer’s security guarantees. To put it simply, restaking is part of a greater DeFi package, one key component of a capital efficiency engine in DeFi.
To overcome restaking’s execution failures, YieldNest prioritizes yield for users while also building out key restaking infrastructure for future oppirtunities. To learn more about YieldNest’s core protocol offerings, you can read our research linked below, and listen to our podcast ft. Amadeo, Co-Founder & CEO of YieldNest.
$YND TGE
One of the ways in which YieldNest has been able to attract a large number of deposits is with its own internal incentives, YieldNest seeds. Deposits on YieldNest have been live since summer of last year. Now, seed farming is in its second and final season, with the exact cutoff date to be announced.
Naturally, the next step is the launch of YieldNest’s native $YND token. When it comes to tokenomics, over 50% of the total $YND supply is allocated toward the $YND airdrop and other ecosystem rewards. Initial airdrop recipients within the community make themselves eligible by using the protocol itself, or holding native tokens of 13 partner protocols–you can find the full list here.
TGEs can sometimes remove incentives for users to maintain deposits on a protocol, but they can also draw more attention to the protocol itself. A liquid token is one of the best ways to get people to follow a project’s progress.
For $YND specifically, the token will be using the ve model, providing some extra utility post-TGE. Beyond governance, $YND can be staked for veYND, giving users a say over where protocol incentives are directed. Users will also be able to delegate their holdings to StakeDAO, which will optimize voting automatically.
Right now, the race to accumulate seeds is still on, with the snapshot date for the $YND airdrop not yet announced. Users should look out for imminent announcements from YieldNest regarding the airdrop snapshot, as well as the official TGE date to get ready to claim.
Important Links
Disclosures
Alea Research is engaged in a commercial relationship with YieldNest as part of an educational initiative and this newsletter was commissioned as part of that engagement.
This content is provided for educational purposes only and does not constitute financial or investment advice. You should do your own research and only invest what you can afford to lose.
Alea Research is a research platform and not an investment or financial advisor.
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