🏦 FlowTraders Brings Institutional Credit Onchain

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 **What's Included:** - Mathematical breakdown of the looping mechanism - Platform comparisons and options - Risk assessment and considerations The guide is available at [YieldNest's Medium](https://medium.com/@yieldnest/ynrwax-looping-capture-the-spread-between-real-world-yield-and-defi-borrow-rates-269de9395cc9). *Note: This is educational content and not financial advice. Users should conduct their own research.*

**Yield tokenization options expand for $ynRWAx holders** Users can now split their $ynRWAx tokens into two components on two platforms: - **PT (Principal Token)**: Locks in a fixed return, redeemable at full value at maturity - **YT (Yield Token)**: Provides pure exposure to variable yield at a fraction of the capital **Available 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 follows the March launch of $ynRWAx on Pendle, where LP APY reached approximately 36%. The token is backed by real-world asset yields and operates fully on-chain. Users can compare both platforms to determine which better suits their yield strategy preferences.

YieldNest's **ynRWAx vault** has achieved significant traction with over **$7.5 million in total value locked** and more than **2,500 holders**. **Key metrics:** - Deployed across 8 blockchain networks: Ethereum, Base, Arbitrum, BNB Chain, Avalanche, Polygon, Plume, and XDC - Vault management handled by Kimber Capital (AFSL No. 425278) - On-chain infrastructure powered by YieldNest - Offering approximately **11% APY** with instant liquidity exit options via Curve Finance The vault has positioned itself among top-performing stablecoin vaults in the RWA (Real World Assets) space, combining regulatory compliance with multi-chain accessibility.

**YieldNest's ynRWAx token offers 11% APY from mortgage-backed private credit on Australian real estate - representing actual real-world yield rather than token emissions or speculation.** The token is backed by senior debt positions secured against Tier-1 Australian properties with over $323M in gross collateral. ynRWAx provides stable returns through structured credit delivered on-chain. **Key features:** - ERC-4626 compliant for DeFi composability - Auto-compounding yield built into share price - Senior debt position with 0.47% loan-to-value ratio - Interest prepaid bi-weekly by borrower The token is now integrated across multiple DeFi protocols including Morpho and Euler, enabling looping strategies where users can borrow against ynRWAx to amplify returns. At 2.5x leverage with current rates, theoretical yields could reach ~20% APY. ynRWAx has a fixed maturity date of October 14, 2026, with full redemptions guaranteed at that time.

**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.