Ethereum PoS Transition Shows Significant Impact on Network Economics and Security

**ynRWAx/USDC is now live on Contango**, streamlining the looping process for YieldNest's real-world asset token. **Key features:** - Automates the complete borrow → swap → re-deposit cycle into a single transaction - Uses flash loans on top of Morpho and Euler protocols - Simplified user experience: select leverage level and confirm **What is ynRWAx looping?** ynRWAx earns ~11% APY from mortgage-backed private credit on Australian real estate. Looping allows users to: - Deposit ynRWAx as collateral - Borrow USDC against it - Buy more ynRWAx with borrowed funds - Repeat to amplify yield exposure The strategy works when ynRWAx yield exceeds USDC borrowing costs, creating a positive spread that compounds with leverage. **Previously available on:** - Morpho (dedicated lending pool) - Euler (with vault-level risk isolation) Contango's integration removes manual complexity from multi-step looping strategies. [Access ynRWAx/USDC on Contango](https://app.contango.xyz/)

**Yield tokenization is now available for $ynRWAx**, allowing users to split their tokens into two distinct components: - **PT (Principal Token)**: Provides fixed returns, redeemable at full value at maturity - **YT (Yield Token)**: Offers leveraged exposure to variable yield at a fraction of the capital Users can access this functionality through two platforms: - [Spectra Finance](https://app.spectra.finance/pools/eth:0x8ee494461b402abf3b26cbcb87030847fcbf6183) - [Pendle Finance](https://app.pendle.finance/trade/pools/0xfce3f966a131c46a51b896ceea3917bc4c302577/manual/liquidity/add?chain=ethereum&view=chart) This approach enables users to customize their risk-return profile based on their preferences—choosing between predictable fixed returns or higher-risk variable yield exposure.

YieldNest published a guide explaining yield looping strategies that capture the spread between real-world asset yields and DeFi borrowing rates. **The core concept:** - When an asset earns more than it costs to borrow against, users can loop the spread - Process: Deposit asset → borrow stablecoins → buy more of the asset → deposit again - Each cycle amplifies exposure to the yield differential The guide covers: - Mathematical breakdown of the looping mechanism - Platform options for executing the strategy - Associated risks and considerations Full walkthrough available at: [YieldNest Medium](https://medium.com/@yieldnest/ynrwax-looping-capture-the-spread-between-real-world-yield-and-defi-borrow-rates-269de9395cc9) *Note: Content is for educational purposes only and does not constitute financial advice.*

**Euler V2's multiply feature streamlines leveraged yield farming** by automating the entire looping process into a single transaction. **Key features:** - Uses flash loans to execute borrowing, swapping, and resupplying automatically - Vault-to-vault LTV settings optimized for ynRWA - One-click execution eliminates manual multi-step processes This innovation builds on similar functionality previously introduced by [Morpho](https://app.morpho.org/ethereum/borrow), which partnered with Velora DEX to enable position looping across Ethereum, Base, Unichain, and Polygon networks.

**YieldNest has launched a new delegator on Cap that connects restaked ETH to real-world mortgage credit.** **How it works:** - ETH restakers provide coverage on Cap - YieldNest operators borrow USDC - USDC flows into $ynRWAx (mortgage-backed credit) - ynRWAx earns ~11% APY from Australian real estate mortgages - Yield returns to restakers at 36% APY The system bridges on-chain liquidity with real-world assets, specifically top-tier Australian real estate. This marks a shift toward using restaked assets as collateral for real-world credit markets. The delegator is built in partnership with Cap and Agra, enabling stable, real-time liquidity for private credit deals. Restakers can now earn yield from both network security and mortgage-secured credit simultaneously. [Access the YieldNest Delegator](http://cap.app/delegators/yield-nest)