yoTokens now power new DeFi activities

We're excited to introduce the first wave of DeFi activities in which you can put your yoTokens to work.

Whether you’re holding yoETH, yoUSD, or yoBTC, you can now use your assets to earn more yield, access new markets, and boost your points.

Let’s break it down.

Reminder: What are yoTokens?

yoTokens (like yoETH, yoUSD, and yoBTC) are ERC-4626 tokens you receive when you deposit into YO. They represent your share of the vault and grow in value as YO generates yield across chains and strategies.

But yoTokens aren’t just meant for HODLing. Because they follow a standardized token format, they can also be used across DeFi protocols.

We’re now activating the next growth lever for YO: turning yoTokens into productive capital across DeFi.

Provide liquidity for yoTokens on Balancer

You can now provide liquidity with yoTokens on Balancer. These pools are ideal for:

• Earning yield with no impermanent loss

• Farming boosted points

• Supporting deep liquidity for yoTokens

Supported Balancer pools on Base:

• yoETH Balancer Boosted Pool

  • Symbol: yoETH-boosted-BPT

  • Assets: yoETH and Aave WETH

  • Points multiplier: 4x

• yoUSD Balancer Boosted Pool

  • Symbol: yoUSD-boosted-BPT

  • Assets: yoUSD and Aave USDC

  • Points multiplier: 4x

• yoBTC Balancer Stable Pool

  • Symbol: yoBTC-stable-BPT

  • Assets yoBTC and cbBTC

  • Points multiplier: 4x

Trade yield on Pendle with yoETH

Pendle has added support for yoETH on Base as the first yield-bearing token from YO.

This opens up three powerful yield strategies:

1. Provide liquidity in the LP-yoETH (Sep-24-2025)

   -Earn trading fees and Pendle incentives with no impermanent loss if you hold until maturity

   -Earn 4x points multiplier

2. Buy PT-yoETH (Sep-24-2025)

   -Lock in a fixed yield until maturity

   -Great for users who want guaranteed, passive returns

   -PT holders receive no points but lock in a fixed yield until maturity

3. Buy YT-yoETH (Sep-24-2025)

   -Get upside exposure in variable yield + YO Points

   -Ideal for degens who want to bet on higher future returns

   -Earn 5x points multiplier

How do DeFi activity points work?

YO Points are our way of rewarding onchain activity. Right now, every user earns a base multiplier that is currently set at 3x (and will decrease as TVL increases). When you participate in DeFi activities using yoTokens, you earn a separate DeFi activities multiplier that does NOT compound with your base multiplier.

Example:

Let’s say I deposited $10K directly into yoUSD + $10K in yoBTC Balance Stable Pool + $10K in Pendle LP-yoETH + $5K in Pendle YT-yoETH.

My daily points allocation is 135K:

• 30K points per day for YO deposits ($10K in yoUSD * 3x multiplier = 30K points)

• 105K points per day for DeFi activities ($10K yoBTC Balancer LP * 4x multiplier + $10K Pendle LP-yoETH 4x multiplier + $5K Pendle YT-yoETH * 5x multiplier = 40K + 40K + 25K = 105K points)

In short: there are now more ways to stack points with your yoTokens. And because yoTokens are composable, you keep earning yield and YO Points no matter where your yoToken goes.

What’s next?

These are the first wave of DeFi integrations for YO vault tokens. Stay tuned for more integrations in the coming weeks.

Note: Revisit this blog post every time for the latest updates on new integrations.

Start earning more with your yoTokens

Head to app.yo.xyz and explore DeFi opportunities today.

This is yield unleashed.

FAQ

General DeFi Activities

1. What can I do with yoTokens outside of the YO app?

   You can use yoTokens in supported DeFi protocols to earn additional rewards, like trading fees, incentives, and more YO Points. Current integrations include Balancer and Pendle, with more coming soon.

2. Do I continue to earn YO yield and points while using my yoTokens in other protocols?

   Yes. Your yoTokens continue to earn vault yield and YO Points even when used in DeFi integrations. Points are tracked separately from YO deposits in ‘DeFi activities’.

3. How are points tracked across various DeFi protocols?

   YO tracks the location and usage of yoTokens onchain. As long as your yoTokens are in supported pools or contracts, your activity is eligible for DeFi points.

4. When will my DeFi activity be reflected in my points balance?

   Points from DeFi activity are updated daily. If you recently deposited into a supported integration, you’ll see the change reflected in the next points update.

5. Will the multipliers change over time?

   DeFi activity multipliers are fixed per integration.

   The base multiplier for YO Deposits will continue to decrease over time as TVL increases.

6. Do I need to manually claim rewards from these integrations?

   You may need to claim rewards such as trading fees or protocol incentives directly from the integrated protocol (e.g., Balancer or Pendle). YO Points are automatically tracked by YO.

About Balancer

1. What is Balancer?

   Balancer is a decentralized exchange and automated market maker (AMM) that lets users provide liquidity and earn trading fees and incentives. It supports custom pool types like Boosted and Stable pools.

2. How does providing liquidity on Balancer work?

   You deposit two assets into a pool and receive a pool token (BPT) that represents your share. You earn fees from swaps and any protocol incentives distributed to liquidity providers (LPs).

3. What are Boosted Pools and Stable Pools?

   Boosted Pools pair yield-generating tokens (like Aave tokens) with other assets to maximize returns. Stable Pools are designed for assets that are expected to trade at similar prices, like yoBTC and cbBTC.

4. What risks should I consider when LPing with yoTokens on Balancer?

   Risks include smart contract risk, pool imbalance, and temporary loss of liquidity. However, the design of these pools minimizes impermanent loss since they pair correlated assets together.

5. How do I earn trading fees and incentives on Balancer?

   You earn fees from swaps that happen in the pool. Some pools may also distribute additional token incentives. These are claimable directly from Balancer.

6. How is the yield calculated for Balancer LPs?

   Balancer LPs earn yield from three main sources:

   • Swap fees: Every time a trade occurs in the pool, LPs earn a portion of the fee.

   • Staking incentives: Some pools offer additional token rewards, often from BAL governance tokens or partner protocols.

   • Yield-bearing tokens: If the pool contains assets like yoTokens or interest-bearing tokens, those yields automatically accrue to LPs based on their share of the pool.

   The total yield is the combination of these sources and is shown as the pool’s APR.

7. How do YO Points work for Balancer LPs?

   YO tracks your BPT position and assigns a 4x DeFi activity multiplier on the value of yoTokens you’ve deposited into the pool.

   For example:

   If you deposit $5,000 worth of yoUSD into the yoUSD Balancer Boosted Pool, you’ll earn 20,000 YO Points per day from that position ($5,000 * 4x = 15,000 points).

   This is separate from the base multiplier you earn from deposits made directly into YO.

About Pendle

1. What is Pendle?

   ​​Pendle is a yield trading protocol that lets you split yield-bearing assets into fixed and variable components. This enables users to lock in fixed returns, speculate on future yield, or provide liquidity for yield markets.

2. What are Principal Tokens (PTs)?

   PTs represent the principal portion of a yield-bearing asset, redeemable at a fixed value (typically 1:1 for the underlying asset) upon maturity. When you deposit a yield-bearing token into Pendle, it’s wrapped into a standardized SY token, which is then split into PT and YT.

   PTs behave like zero-coupon bonds in traditional finance: they start at a discount and gradually appreciate to their full redemption value as maturity approaches. This creates a predictable fixed yield if you hold until maturity.

3. What are Yield Tokens (YTs)?

   YTs represent the future yield from a yield-bearing asset. When you buy YTs, you are speculating on how much variable yield the asset will generate until maturity. The value of YTs trends toward zero as they approach maturity because they represent a stream of yield that ends at that point.

   You profit if the total yield generated ends up being higher than the price you paid for the YT. The market prices YTs based on its expectations of future yield, so buying YT is essentially taking a long position on future yield.

   Yield earned from YTs can be claimed through the Pendle dashboard at any time.

4. What is an LP position on Pendle?

   An LP position on Pendle means depositing a pair of tokens into a Pendle liquidity pool. These pools always consist of Principal Tokens (PT) and standardized yield-bearing tokens (SY). The pool enables users to trade between fixed and variable yield exposures by allowing direct swaps between PT and SY, while Yield Token (YT) swaps are supported through a flash swap mechanism using the same pool.

   When you provide liquidity, you earn yield from multiple sources. These include the fixed yield embedded in PTs, the underlying yield from SY, swap fees from both PT and YT trades, and any additional incentives like PENDLE rewards. If you hold your LP tokens until maturity, there is no impermanent loss because PTs are redeemed 1:1 for SY at maturity.

5. Are there risks with using Pendle’s yield products?

   Yes. Risks include slippage, pricing volatility (based on market demand for PTs or YTs), and smart contract risk. However, holding to maturity can reduce many of these risks.

6. How do YO Points work for Pendle LPs and YT buyers?

   YO tracks your Pendle LP and YT positions and applies a 4x and 5x DeFi activity multiplier to the value of yoTokens in those positions, respectively.

   For example:

   If you deposit $10K of yoETH into a Pendle LP, you’ll earn 40K points per day from DeFi activity ($10K * 4x multiplier).

   If you buy $10K of YT-yoETH, you’ll earn 50K points per day ($10K * 5x multiplier).

7. Why don’t PT holders earn points?

   Pendle splits a yield-bearing asset into PT and YT. All future yield and reward rights (including YO Points) are assigned to the YT. This is by design. PTs only represent the principal and accrue to a fixed redemption value at maturity, while YTs carry all the upside from variable yield and points. Holding a PT is effectively opting out of yield exposure in exchange for a discounted, fixed return.

8. How do YTs provide amplified exposure to yield?

   YTs let you gain amplified exposure to the yield. Because PTs are usually worth more than YTs, a small purchase of YTs can give you access to the full yield from a much larger amount of the underlying asset. For example, 1 ETH worth of YT-yoETH might give you the same exposure to yield and YO Points as holding 20 ETH worth of yoETH. This makes YTs a powerful tool for users who want to bet on future yield or maximize points with smaller capital.