MAX LRTs Predicted to Lead DeFi Innovation in 2025

**ynRWAx enables a new DeFi primitive: looping real-world asset yield** YieldNest's ynRWAx token is designed specifically for leverage looping—a strategy where users borrow against yield-bearing collateral to amplify returns. Unlike most RWA tokens, ynRWAx offers: - **Stable collateral** backed by Australian mortgage-secured credit - **~11% base APY** from real-world lending - **Deep borrow markets** on Morpho and Euler - **ERC-4626 composability** for seamless DeFi integration **How it works:** Deposit ynRWAx as collateral → borrow USDC → buy more ynRWAx → repeat. Each cycle stacks exposure to the 11% yield while paying ~5% borrow costs, creating a positive spread. Contango now automates the entire loop into one transaction using flash loans, making the process significantly simpler. **The setup includes:** - Isolated risk pools on Morpho - One-click looping via Euler's Multiply feature - Additional yield through Merkl and Brevis incentives - Yield tokenization options on Pendle and Spectra **Key risks:** liquidation if ynRWAx/USDC ratio drops, variable borrow rates, and redemption constraints (maturity: Oct 14, 2026). This wasn't possible until recently. Now it's becoming a core DeFi building block. [Full looping guide](https://medium.com/@yieldnest/ynrwax-looping-capture-the-spread-between-real-world-yield-and-defi-borrow-rates-269de9395cc9)

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)

**YieldNest** partnered with **FlowTraders** and **CapitalMoney** to bring institutional credit markets onchain through **Eigencloud**. - FlowTraders becomes first operator-restaker deployment on Eigencloud - YieldNest's MAX LRTs isolate operator risk into separate liquid tokens - New **ynRWAx campaign** with Brevis allows holders to earn more ynRWAx - **ynBNBx holders** now get exposure to $AT token This marks a significant step for onchain credit markets, with YieldNest's upgraded design adding cross-chain DeFi strategies on top of their risk-isolated liquid restaking tokens.