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:
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
Delta-Neutral Strategies: Combine long staking positions with short hedges (e.g. via Ethena) to capture staking rewards while minimizing exposure to price volatility.
To know more about the active strategies, you can have a look at vaults for following chains:
Berachain POL(proof of liquidity) specific strategies: Raga Auto-compounding Vaults
Hemi Yield-looping strategies: Yield-looping Vaults
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