# How does Raga Finance generate returns

Every chain is different, and so are the strategies involved to generate returns on them. The most common ways that Raga vaults generate returns are:

* **Delta-Neutral Strategies:** Combine long staking positions with short hedges (e.g. via Ethena) to capture staking rewards while minimizing exposure to price volatility.
* **Staking & Restaking:** Lock assets in native PoS or liquid-staking protocols (e.g., Lido, EigenLayer). Rewards are continuously restaked to compound returns.
* **Lending:** Supply assets to leading lending platforms (e.g., Aave, LayerBank) to earn interest from borrowers and protocol incentives.
* **Looping:** Recursively borrow and re-lend collateral to amplify yield. Loop depth is optimized to balance extra return against liquidation risk.
* **Yield trading:** Maximise fixed yield generation through interest trading protocols (e.g., Pendle, Spectra) by looping yields on PT-strategies

To know more about the active strategies, you can have a look at vaults for following chains:

1. Hyperliquid-delta neutral strategies: [Delta Neutral](/strategies/delta-neutral.md)
2. Berachain POL(proof of liquidity) specific strategies: [Raga Auto-compounding Vaults](/berachain/raga-auto-compounding-vaults.md)
3. Hemi Yield-looping strategies: [Yield-looping Vaults](/hemi/yield-looping-vaults.md)


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