Yield Generation

Novastro's Yield Generation services integrate with decentralized finance (DeFi) mechanisms. Investors may stake RUSD, lend out tokenized assets, or participate in revenue-sharing models tied to tokenized infrastructure projects. By combining the stability of real-world assets with DeFi strategies, Novastro aims to deliver attractive risk-adjusted returns.

Yield Calculation and Optimization

For yield-generating assets—such as revenue-producing real estate or income from commodities—the annual yield Y can be expressed as:

Total Annual Earnings

Y = × 100%

Asset Value

In a tokenized context, each token holder receives a pro rata share:

Yk = fk × Y

where fk is the fraction of total tokens held by token holder k .

Combining these yields with DeFi strategies—such as staking or lending—can be formalized through optimization techniques (e.g., linear or convex programming) to maximize overall returns. A basic formulation might be:

m

j × Rj )

βj  Fraction of the portfolio allocated to strategy j Rj  Expected return of strategy j m  Number of available yield strategies Subject to constraints:

m

∑ βj = 1, βj ≥ 0

j=1

These constraints ensure that all βj values sum to 1 (representing 100% allocation) and remain nonnegative. By solving this optimization problem, investors can balance capital across multiple yield strategies in a manner that aims to maximize total returns while managing risk effectively.