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| Main Authors: | , , , |
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| Format: | Preprint |
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2026
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2605.23298 |
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| _version_ | 1866910247598161920 |
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| author | Kitzler, Stefan Asadi, Kasra Zarinehbaf Kremer, Svetlana Haslhofer, Bernhard |
| author_facet | Kitzler, Stefan Asadi, Kasra Zarinehbaf Kremer, Svetlana Haslhofer, Bernhard |
| contents | Yield aggregators are financial services in Decentralised Finance (DeFi) providing automated investment management and return optimisation for users. In this study, we investigate the operational mechanisms and monetary flows of two major yield aggregators, Yearn Finance and Cian, over the period from May 4, 2024 to May 3, 2025. Our supporting conceptual framework decomposes yield aggregator operations into user investment and strategy management cycles. Using a network approach for 2,459 Yearn and 921 Cian transactions, we trace protocol interactions and capital flows across the ecosystem. Users invested 15.7M USD into Yearn's USDC vault, which generated yield through liquidity provision and dynamic allocation across DeFi protocols. Cian, deployed later, attracted 54.0M USD into its staked-ETH (stETH) vault and implemented sophisticated leverage through flashloan-enabled recursive staking. Yearn's USDC vault achieves an annual yield of 5.41%, while Cian's stETH vault produces 4.22% with higher risk exposure. We use the operational insights from our analysis to extend the existing DeFi Stack Reference Model (DSR) with new financial primitives to highlight structural risk dependencies. Overall, our findings show that strategic complexity in yield aggregation does not necessarily translate into higher returns but materially expands risk exposure. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2605_23298 |
| institution | arXiv |
| publishDate | 2026 |
| record_format | arxiv |
| spellingShingle | DeFi Yield Aggregators: Analysing Investment Strategies and Structural Dependencies Kitzler, Stefan Asadi, Kasra Zarinehbaf Kremer, Svetlana Haslhofer, Bernhard Computational Engineering, Finance, and Science K.4.4; J.4; H.2.8 Yield aggregators are financial services in Decentralised Finance (DeFi) providing automated investment management and return optimisation for users. In this study, we investigate the operational mechanisms and monetary flows of two major yield aggregators, Yearn Finance and Cian, over the period from May 4, 2024 to May 3, 2025. Our supporting conceptual framework decomposes yield aggregator operations into user investment and strategy management cycles. Using a network approach for 2,459 Yearn and 921 Cian transactions, we trace protocol interactions and capital flows across the ecosystem. Users invested 15.7M USD into Yearn's USDC vault, which generated yield through liquidity provision and dynamic allocation across DeFi protocols. Cian, deployed later, attracted 54.0M USD into its staked-ETH (stETH) vault and implemented sophisticated leverage through flashloan-enabled recursive staking. Yearn's USDC vault achieves an annual yield of 5.41%, while Cian's stETH vault produces 4.22% with higher risk exposure. We use the operational insights from our analysis to extend the existing DeFi Stack Reference Model (DSR) with new financial primitives to highlight structural risk dependencies. Overall, our findings show that strategic complexity in yield aggregation does not necessarily translate into higher returns but materially expands risk exposure. |
| title | DeFi Yield Aggregators: Analysing Investment Strategies and Structural Dependencies |
| topic | Computational Engineering, Finance, and Science K.4.4; J.4; H.2.8 |
| url | https://arxiv.org/abs/2605.23298 |