Multi-Strategy Yield

Definition ∞ Multi-strategy yield refers to an investment approach that combines several different methods to generate returns from digital assets. This typically involves allocating capital across various decentralized finance (DeFi) protocols, such as lending, staking, and liquidity provision. The aim is to optimize returns while managing associated risks.
Context ∞ In the decentralized finance (DeFi) sector, multi-strategy yield protocols are gaining traction as users seek to maximize returns in volatile markets. These strategies require sophisticated risk assessment due to the complexity of interacting with multiple smart contracts and potential protocol vulnerabilities. The development of automated yield aggregators seeks to simplify access to these diverse opportunities.