Users can maximize their DeFi returns with restaking strategies that leverage innovative tools for yield optimization and risk management.

As the decentralized finance (DeFi) market matures, with over $100 billion in total value locked (TVL), opportunities to earn yield are plentiful. Advanced trading methods from traditional finance, such as margin trading and derivatives, are beginning to boost yields through strategies like restaking.

Ways to Boost Yield on Restaking in DeFi

What are some ways today that you get the most yield from restaking? Let’s discover three.

1. Leverage LRTs as Collateral for Enhanced Exposure

Leveraging liquid restaking tokens (LRTs) as collateral for greater exposure is a classic leveraged trade. You can borrow ETH to buy an LRT with leverage—which then acts as your collateral—and enjoy farming all of the yield and points that the LRT has to offer.

2. Buy YTs from Pendle for Leveraged Exposure to LRTs

Traders can purchase Yield Tokens (YTs) to invest in the future yield of LRTs, which may significantly enhance returns. The primary appeal of YTs lies in their ability to offer leveraged exposure to points farming, a critical aspect that attracts investors seeking to maximize their potential yields.

Many protocols enable points farming. Marginly—a DeFi leverage protocol—is rewarding Sparks (points) to its users, because holding Sparks makes users eligible for the upcoming Marginly airdrop. 

3. Buy PTs for Leveraged Exposure to High Implied APY

Pendle Principal Tokens (PTs) are used to gain leveraged exposure to assets with high implied annual percentage yields (APYs). By leveraging these tokens, traders can potentially achieve higher returns relative to market conditions and the performance of underlying assets.

What Innovative Tools Support Yield Optimization and Risk Management

DeFi platforms leverage smart contracts to offer unique strategies that maximize returns and redefine risk management. Platforms like Marginly provide an easy-to-use, safe, and smart-contract-based solution for margin trading and derivatives, attracting a wide range of traders by simplifying complex DeFi strategies.

Launched in December 2023, Marginly supports advanced strategies for boosting yields through leveraged positions. The Marginly protocol design helps manage the inherent risks in crypto markets and maximizes profits, a necessity as DeFi market values continue to climb.

And climb they do! Research from Zion Market Research suggests the global DeFi market size could escalate from under $12 billion in 2021 to approximately $232.2 billion by 2030. To support this growth, DeFi must advance user-friendly technologies that enhance accessibility and foster global adoption.

What Marginly means for DeFi

Marginly exemplifies the evolution of DeFi by integrating traditional trading methods such as margin trading and derivatives into its platform. This enhances yield optimization—and the protocol design further improves risk management. As DeFi continues to grow, platforms like Marginly are crucial for making DeFi more accessible and user friendly, attracting a broader range of users and fostering continued innovation in web3.