YO Labs Raises $10M to Scale Cross-Chain Crypto Yield Optimization Protocol
Summary
YO Labs, the team behind YO Protocol, has raised $10 million in a Series A funding round led by Foundation Capital to scale its cross-chain yield optimization platform. The protocol automatically generates yield by rebalancing capital across various DeFi protocols, factoring in risk, and offers access to assets like USD, EUR, BTC, and gold. Unlike single-chain aggregators, YO Protocol operates across chains using 'embassies'—independent vaults holding native assets—to minimize bridge reliance and associated risks. Its core innovation is the "Risk Adjusted Yield" calculation, which uses thousands of risk vectors, including protocol age and audit history, to determine capital allocation. The system also employs a 'DeFi Graph' to monitor dependencies and automatically trigger withdrawals during market volatility or protocol failures. This funding brings YO Labs' total raised to $24 million, positioning the protocol as core infrastructure for embedding sustainable yield into fintech products and wallets.
(Source:CoinDesk)