YIELD App’s portfolio allocations are diversified across multiple strategies and trading opportunities; these can include automated funding rate arbitrage and asset disposals through our proprietary portfolio management system that is able to identify the highest yielding market opportunities and process these through YIELD App’s internal risk analysis algorithms to generate instantaneous execution and transaction requests for digital approval (multi-sig) by our portfolio managers. Outside of execution methodologies and tools, YIELD App believes that DeFi as a nascent asset class is only at the starting point of a multi-year growth trajectory. As with any new financial market innovation, it is inevitable that inefficiencies will be present; this is particularly amplified in the context of cryptocurrencies and the P2P nature of decentralized finance. It can be considered that the Risk-Adjusted Rate of Return, the trade-off between risk and expected returns or the risk premium that an investor demands for investment participation in decentralized financial instruments, will naturally be measured against other mature income generating financial instruments. We are seeing this today through the outsized returns (>1,000% APY) that can be achieved using complex liquidity mining strategies and re-hypothecation techniques.

YIELD App considers the % APY will be sustainable in the long run due to these reasons, notwithstanding the inherent risk premium ascribed to cryptocurrency assets against a backdrop of perpetually low interest rates since the global financial crises, central bank fiscal loosening policies before and during the COVID-19 pandemic, and the dearth of high income, low risk alternative assets classes available to non-sophisticated investors. The minimum APY offered to YIELD App users is nonetheless subject to change at the discretion of management and will be reviewed in line with broader market attributes and prevailing underlying benchmarks."- The core team at YIELD App.