What is a Real Yield Asset (RYA)?

Real Yield Assets (RYA) is a novel concept created by Hydro Protocol to help users maximize their yield strategies across the crypto market. Simply put, RYA is a core financial product in the LSDFi Ecosystem that gives users access to multiple yields in one basket.

A sample of a Hydro Real Yield Asset with sample components and weightings of different yield

Hydro understands that being exposed to one singular asset puts users at unnecessary risk, sometimes at a frightening cost. In order to best hedge these risks, Hydro has created the RYA.

The Hydro RYA will have diversified sources of yields and risks that are indexed as components with different weightings into a basket. The term ‘Real Yield’ in this case refers to yield that is generated from sources of revenue outside of inflationary tokenomics. DeFi saw the emergence of LP Pools, generally in pairs (ie INJ-USDT), the RYA will work similarly to an ETF in the traditional equity market, and be aggregated into an LP token.

Examples of these diversified yields include: revenues generated from margin trading protocols, fee shares and joint ventures, APY from staking, and yield generated from collateralized RWAs.