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Managed Yield Strategies

Definition

Managed yield strategies are investment approaches in decentralized finance where a third-party service or protocol automatically allocates and optimizes a user’s digital assets across various DeFi protocols to generate returns. These strategies aim to maximize yield by dynamically adjusting positions based on market conditions, interest rates, and risk factors. They abstract away the complexities of navigating multiple DeFi platforms, offering users a simplified way to participate in yield generation. Such services often employ algorithms to manage asset allocation.