Yield Strategy Index

Yield Strategy Index

DeFi Strategies • Yield Models • Token Income

passive vs active income methods in DeFi

Yield Strategy Index categorizes yield strategies based on how much time, effort, and risk a user must take to earn consistent returns. It compares passive holding rewards to more active techniques like liquidity farming and manual compounding. Matching your strategy to your lifestyle and risk tolerance is key in DeFi.

Use Case: A user evaluates their options — choosing between passive $KAG/$KAU holder’s yield that requires zero management versus higher-effort LP farming that demands constant monitoring. The index helps match strategy to lifestyle.

Key Concepts:

• Passive Yield Delivery — Rewards distributed without user action
• Active Yield Generation — Strategies requiring ongoing management
• Auto-Compounding — Automated reinvestment of earned rewards
• Vault Farming — Automated yield optimization through vaults
• Yield Farming — Manual liquidity provision for rewards
• Staking — Locking tokens to earn network rewards
• Liquid Staking Protocol — Staking with maintained liquidity
• APR – Annual Percentage Rate — Simple annual return rate
• APY – Annual Percentage Yield — Return rate including compounding
• Impermanent Loss — Risk in LP positions when prices diverge
• Gas Fee Optimization — Reducing transaction costs for better returns
• Holder’s Yield — Kinesis’s passive income for precious metal holders
• DeFi Yield Models — Structural approaches to yield generation
• Kinesis Money — Platform for passive precious metal yield

Summary: The Yield Strategy Index helps users align their DeFi participation with their available time, risk tolerance, and income goals. From zero-effort holding to active farming, understanding where each strategy falls on the effort-reward spectrum enables smarter capital allocation.