TL;DR

YO Protocol is a cross‑chain yield‑optimization platform that deploys ETH, BTC, stablecoins, and soon also tokenized gold (via XAUt) across a range of DeFi strategies. Users deposit assets and receive yield‑bearing yoTokens, such as yoETH, yoUSD, and yoGOLD, while capital is reallocated across lending, liquidity provision, and yield trading. The protocol currently offers returns of up to above 7 % APY, with a points program also running, while the tokenized gold vault is open for pre‑deposits ahead of full activation.

YO Labs recently made crypto headlines with a $10 million raise to scale its DeFi platform YO Protocol, bringing the total raised to $24 million, including a previous seed round.

YO itself is a yield‑optimization product that works across chains, and besides offering opportunities to earn on deposited ETH, BTC, and stablecoins, it also features an upcoming way to earn yield from gold, via Tether’s tokenized gold token XAUt, although this vault is currently still in pre‑deposit mode.

As with all DeFi products, there are hazards to keep in mind when using YO, which include the possibility of frontend attacks, smart‑contract exploits, and stablecoin de‑pegs. This guide is not an endorsement of the protocol, and you should check the official documents before transacting.

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How Does YO Protocol Work?

For users, YO is all about taking a set‑and‑forget approach: simply deposit assets and let the protocol take care of pulling in maximum yield.

In practice, YO deploys assets into DeFi strategies across multiple networks (where the highest yields are found) and actively manages and rebalances positions. YO stands for Yield Optimizer.

When assessing how to deploy funds, YO Protocol uses Exponential, which operates a DeFi risk‑assessment system to target the best risk/reward opportunities. You can view Exponential’s assessment of YO, which gives an overall Good rating based on code quality, maturity, and design.

The ecosystem of protocols integrated with YO is expanding; strategies at work include lending and borrowing, liquidity provision, and yield trading.

Image from YO Protocol

When you deploy tokens on YO, you receive yield‑bearing yoTokens in return, such as:

• yoETH

• yoBTC

• yoUSD (for USD‑denominated stablecoins)

• yoEUR (for EUR‑denominated stablecoins)

• yoGOLD (for XAUt)

Because these tokens are yield‑bearing, their value increases over time relative to the underlying assets.

YO Protocol also runs a YO Points campaign. Users earn points from deposits and can boost rewards by using YO tokens in other platforms (e.g., Morpho, Pendle, Fluid) or by referring others (10 % points boost). See the Points page for details.

Current TVL: $62.31 million

Highest yield currently available: 7.22 % 7‑day APY on USD stablecoin deposits.

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How to Use YO Protocol

Example: yoUSD Vault

• TVL: just under $30 million

• Yield sources: 45

• Redemptions: instant

Image from YO Protocol

Steps to deposit:

1. Visit the YO app at https://app.yo.xyz/.

2. Locate yoUSD under the “Featured” section.

3. Follow the on‑screen prompts to deposit your stablecoins.

(Additional detailed UI instructions were omitted in the original source.)

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Additional Notes

• YO’s cross‑chain architecture means assets may be allocated on multiple blockchains (e.g., Ethereum, Binance Smart Chain, Avalanche) depending on where the best yields are found.

• The upcoming yoGOLD vault will allow users to earn yield on tokenized gold (XAUt) once fully launched; it is currently in a pre‑deposit phase.

• As with any DeFi protocol, users should conduct their own due diligence, monitor smart‑contract audits, and stay aware of market risks such as stablecoin de‑pegs or platform exploits.

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This article is for informational purposes only and does not constitute financial advice.