Underlying Strategies
Principles & Mandate
Yuzu Money’s strategies are:
100% on-chain and verifiable via Accountable
Bound by the Asset Whitelist
Risk-first – Prioritizing capital preservation over yield
Backed by a layered protection stack (yzPP first-loss tranche, Nexus Mutual insurance where applicable, and the Reserve Fund)
This page explains the main strategy families that backing assets are deployed into. For a live view of exposures, refer to the Strategy Breakdown section of our Transparency dashboard.
Strategy Buckets
At a high level, backing strategies include but are not limited to:
DeFi liquidity provision
Leveraged loops
Private TVL programs
Pre-deposit vaults
Airdrop / points farming
The strategies are broadly categorized into the following buckets.
1. Leverage Loops
Leveraged loops on correlated assets, particularly where oracles are robust (e.g. hard-coded bands, long TWAPs, or fundamental backing).
Examples include:
USDe / stables loops
syrupUSDC / stables loops
The goal is to earn a spread between supply and borrow yields (plus incentives) while staying within LTV and liquidation thresholds.
2. Private TVL Deals
Yuzu Money partners directly with protocols in private TVL programs.
These deals often come with improved economics (higher base yield, upside sharing, or bespoke incentives) in exchange for committed TVL.
All such deals are backed by whitelisted collateral and venues and must pass the same risk assessment as public strategies.
3. Pre-Deposit Vaults
Ecosystems and/or protocols may offer pre-deposit programs where yield is boosted for early committed capital before a strategy is fully live.
Yuzu Money may allocate to such pre-deposit vaults when the underlying strategy, protocol, and asset risks have been reviewed and whitelisted.
4. Airdrop / Points & Incentive Farming
Backing assets may be deployed into strategies that earn airdrop / points / incentive rewards from emerging protocols.
These strategies must still be fundamentally sound on an asset backing basis; with their points / airdrops / incentives treated with conservative estimates.
Any realized tokens or incentives from such programs accrue back to the protocol’s economic engine and Reserve Fund.
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