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Introduction: What Are the Real Risks Behind High APY in DeFi Yield?
DeFi yield has become one of the most discussed topics among crypto users. Compared to traditional bank savings, stablecoin DeFi yields often offer significantly higher annual percentage yields (APYs), attracting a growing number of users to participate in on-chain yield strategies and explore passive income opportunities through DeFi.
However, in practice, many users still focus primarily on APY figures while overlooking the underlying risk structure of DeFi yield. This article provides a comprehensive overview of what DeFi yield is, how DeFi APY is calculated, the key risks involved, and how better product design and risk management can reduce unnecessary uncertainty—helping users form a more rational and complete understanding of DeFi yield.
What Is DeFi Yield?
DeFi yield refers to deploying crypto assets (primarily stablecoins) into decentralized finance (DeFi) protocols, where smart contracts automatically operate on-chain to generate ongoing returns. Unlike traditional finance, DeFi yield does not rely on centralized intermediaries or manual management. Instead, it is driven by code and market-based mechanisms.
Common sources of DeFi yield include the following:
Lending Interest
Lending interest is the most common and easiest-to-understand source of DeFi yield. Users deposit stablecoins into decentralized lending protocols such as Aave or Compound. These assets are then lent to borrowers who have capital demand. Borrowers pay interest, which is distributed proportionally to liquidity providers.
Interest rates are determined by market supply and demand. When borrowing demand increases, interest rates rise; when liquidity is abundant, rates decline. Due to its relatively clear logic and more predictable behavior, lending-based DeFi yield is generally considered one of the lower-risk yield models in DeFi.
Protocol Revenue Sharing
Some DeFi protocols distribute part of their protocol-generated revenue to participants. These revenues may come from:
Lending spreadsTrading feesLiquidation feesSystem or service fees
In this model, users are not merely lending assets but are participating in the protocol’s economic activity and indirectly sharing in its growth. The stability of this type of DeFi yield is closely tied to protocol usage, trading volume, and overall ecosystem activity, making long-term operational strength a key factor.
Liquidity Optimization
Liquidity optimization refers to automatically allocating user funds across multiple DeFi protocols or pools through smart routing or strategy aggregation to achieve better overall returns. The core objectives of these strategies include:
Dynamically reallocating capital across protocolsImproving capital efficiencyReducing yield volatility caused by reliance on a single market
Compared to single-protocol deposits, liquidity optimization emphasizes strategy-level management and is typically executed continuously by automated contracts rather than through manual user actions.
Structured Yield Strategies
Structured yield strategies represent a more complex category of DeFi yield. These strategies often combine multiple on-chain tools and market mechanisms, such as:
Lending combined with hedgingArbitrage between spot and derivatives marketsYield-enhanced stablecoin strategies
By managing risk exposure and defining return ranges, structured strategies aim to generate relatively stable returns. Due to their complexity, they require more advanced smart contract design and risk management, and therefore usually involve higher potential returns as well as higher risk than basic lending strategies.
In essence, DeFi yield is not a single model but a combination of various on-chain financial activities. Unlike centralized platforms, all DeFi yield generation, asset flows, and return distributions occur fully on-chain and are verifiable and traceable by anyone. This transparency reduces information asymmetry and provides a foundation for users to better understand yield sources and risk structures.

How Is DeFi APY Calculated—and Why Does It Change So Frequently?
What APY Means in DeFi
APY (Annual Percentage Yield) represents the annualized return calculated on a compound basis. In DeFi, APY is not a fixed number set by a platform. Instead, it is dynamically determined by on-chain supply-demand conditions and protocol rules, which explains why DeFi APY can change rapidly.
The primary factors influencing DeFi yield APY include:
Borrowing Demand
In lending-based DeFi protocols, APY is closely tied to borrowing demand. When more users seek to borrow certain assets—such as stablecoins for leverage or liquidity deployment—borrowing rates increase, leading to higher returns for liquidity providers. When borrowing demand declines, APY typically falls.
As a result, DeFi APY often exhibits cyclical behavior: rising during periods of market activity or volatility and declining during calmer market conditions.
Liquidity Supply
APY is also affected by the supply side of capital. When large amounts of capital flow into a protocol or asset pool, available liquidity increases, reducing the need for high interest rates to attract deposits. Conversely, when liquidity is scarce, protocols may raise yields to incentivize inflows.
In this sense, APY reflects capital scarcity rather than protocol generosity.
Protocol Utilization Rate
Many DeFi protocols dynamically adjust their interest rate models based on asset utilization rates—i.e., the proportion of borrowed funds to total deposits. When the utilization rate approaches its upper limit, these protocols significantly increase borrowing rates to encourage more liquidity inflow and curb excessive borrowing behavior.
While higher utilization can boost APY, it may also signal increased liquidity risk.
Market Volatility and Incentive Mechanisms
Market volatility plays a significant role in APY fluctuations. During volatile periods, demand for trading, arbitrage, and leverage increases, driving higher borrowing demand and yields.
Additionally, some protocols temporarily boost APY through token incentives or promotional rewards. While these incentives may appear attractive initially, they are often unsustainable. Once incentives decline, yields tend to normalize toward market-driven levels.
Overall, DeFi APY is a dynamic indicator reflecting expected annualized returns under current market conditions, not a long-term guarantee. Understanding the sources, sustainability, and risk profile behind APY is far more important than chasing high headline numbers.

Common DeFi Yields and APY Ranges

What Are The Major Risks of DeFi Yield?
After understanding how DeFi yield works, an unavoidable question arises: What risks does DeFi yield involve?
Unlike traditional financial products, DeFi yield risks are not concentrated in a single area. Instead, they span smart contract security, liquidity and redemption mechanisms, yield sustainability, and user operational behavior.
Smart Contract Risk
DeFi yield relies entirely on smart contracts. All deposits, distributions, interest calculations, and redemptions are executed automatically by on-chain code. If a smart contract contains design flaws, logic vulnerabilities, or unforeseen edge cases, it may be exploited by attackers, resulting in asset losses. This is also one of the core concerns for many users searching "Is DeFi yield safe?"
Importantly, even long-running and well-established protocols are not risk-free. Many historical incidents were not caused by malicious code but by excessive contract complexity, protocol upgrades introducing new variables, or failures in external dependencies. Audits reduce risk but do not eliminate it.
Liquidity and Redemption Risk
Not all DeFi yield strategies support instant withdrawals. Some strategies introduce lock-up periods, redemption queues, or delayed settlement mechanisms to improve capital efficiency. Under normal market conditions, these designs may have little impact, but during extreme market stress or liquidity shortages, they can restrict timely exits.
When many users attempt to redeem simultaneously and available liquidity is insufficient, delays or temporary suspensions may occur. This does not necessarily indicate protocol failure but reflects structural liquidity constraints.
Unsustainable APY Risk
High APY (Annual Percentage Yield) is often one of the most attractive metrics in DeFi for users, yet it is also among the most commonly misunderstood elements. Elevated yields often stem from:
Short-term token incentivesEarly-stage capital scarcityTemporary market imbalances
When incentives end, capital inflows increase, or market conditions change, APY can decline rapidly. If returns rely more on subsidies than real economic activity, long-term sustainability is weak. Chasing high APY without understanding its source often leads to higher uncertainty and drawdown risk.
Operational Risk
DeFi’s open and non-custodial nature gives users full control over their assets—but also full responsibility for their actions. Unlike centralized platforms, DeFi systems generally offer no error correction once transactions are executed.
Complex processes such as network selection, contract verification, asset approvals, and transaction signing introduce operational risk. A single mistake can result in irreversible asset loss, even if the underlying protocol is secure.
Black Swan and Systemic Risks
Beyond identifiable structural risks, DeFi is also exposed to unpredictable black swan events. These risks typically do not originate from a single protocol, but are triggered by extreme market volatility, stablecoin depegging, base-layer network congestion, or cascading effects across interconnected protocols.
In extreme scenarios, even when an individual protocol is functioning as intended, sharp external price movements, oracle failures, breakdowns in liquidation mechanisms, or rapid liquidity depletion may still lead to forced liquidations or temporary withdrawal restrictions. Such events are often sudden and highly contagious, allowing their impact to spread quickly across the broader DeFi ecosystem.
Overall, DeFi yield risks are not isolated issues—they arise from the combined effects of technology, liquidity, market dynamics, and systemic interdependencies. A rational approach is not to avoid risk entirely, but to understand its structure and choose products and strategies with clearer risk controls.

Who Is DeFi Yield Suitable For?
After understanding both mechanics and risks, a more practical question emerges: Is DeFi yield suitable for everyone?
In reality, there is no universal answer. Suitability depends on a user’s asset structure, risk tolerance, and understanding of APY volatility and DeFi yield risks.
Generally, DeFi yield is more suitable for users who:
Hold stablecoins long term and want passive returns without frequent tradingUnderstand that APY is variable and not a guaranteed returnPrioritize yield sources and risk structure over short-term maximum returnsWant to reduce manual on-chain operations while maintaining asset self-custody
Conversely, users seeking short-term high returns, requiring instant liquidity in all market conditions, or unable to tolerate APY fluctuations may find DeFi yield unsuitable for their current needs.
Clarifying one’s objectives and risk boundaries is itself a critical component of DeFi risk management.
How BenPay DeFi Earn Manages DeFi Yield and Risk
After understanding DeFi yield risks, many users focus on how product design can reduce operational complexity and uncertainty.
BenPay DeFi Earn does not claim to eliminate risk. Instead, its goal is to structure, filter, and simplify DeFi participation—helping users access more understandable and sustainable on-chain yield within controlled risk boundaries.
Protocol Selection and Structured Access
Since DeFi yield relies entirely on smart contracts, smart contract risk has become one of users’ primary concerns. BenPay DeFi Earn establishes protocol-level risk control as its first line of defense, connecting to DeFi protocols through a unified strategy interface to prevent users from directly interacting with highly complex or experimental smart contracts.
At the same time, all integrated DeFi protocols undergo multi-dimensional evaluation. Only blue-chip protocols are selected, while high-risk long-tail assets are excluded. All smart contracts are audited by SlowMist, ensuring a transparent and secure yield environment.
It is important to note that BenPay does not provide any “guaranteed coverage” for smart contract risk. Instead, risk exposure is minimized through protocol selection and structural design, reducing unnecessary technical risk wherever possible.
Strategy Segmentation and Transparency
Different DeFi yield strategies inherently differ in their liquidity structures. BenPay DeFi Earn clearly distinguishes the following aspects at the product level:
Whether instant redemption is supportedWhether a redemption waiting period existsThe expected time frame for fund withdrawal
Through strategy layering and clear labeling, users can understand liquidity constraints before selecting a yield strategy, enabling them to allocate funds rationally based on their own needs rather than passively facing limitations during market volatility.
At the same time, BenPay tends to prioritize strategies with relatively mature liquidity structures that support free redemption, avoiding excessive reliance on liquidity assumptions that hold only under extreme market conditions.

Yield Source over APY Number
Rather than chasing the highest APY, BenPay prioritizes yield sustainability and real economic activity. Strategies heavily dependent on short-term incentives face stricter inclusion criteria.
APY is presented as a dynamic range rather than a fixed promise, helping users understand that yield fluctuates with market conditions.

*The annualized return rate is a historical range or reference level; actual returns are subject to real-time on-chain performance and do not constitute any promise of returns.
Simplified Operations and Reduced User Risk
BenPay encapsulates complex DeFi processes—cross-chain transfers, asset swaps, and contract interactions—into a one-click experience. Users can participate in DeFi yield without managing technical steps themselves, significantly reducing operational and behavioral risk.
In addition, BenPay supports automatic compounding, reinvesting yield on-chain without requiring manual transactions or repeated gas fees. This improves capital efficiency while further minimizing operational errors.
Conclusion
DeFi yield is not about chasing the highest APY—it is about balancing yield sources, risk structure, and liquidity constraints. Higher returns naturally come with higher uncertainty.
A rational approach to DeFi yield focuses on clarity, controlled risk exposure, and operational simplicity. For users who want to participate in DeFi yield without directly managing complex on-chain processes, BenPay DeFi Earn offers a structured, transparent, and simplified path—designed to reduce unnecessary uncertainty while maintaining user autonomy.

Risk Notice: The content of this article is solely for educational and informational purposes and aims to help users understand the DeFi yield mechanism, APY changes, and risk structures. This article does not constitute any investment advice, financial management advice, or return commitment. Participating in DeFi Earn involves various risks, including smart contract risks, liquidity and redemption risks, APY unsustainability risks, operational risks, and systemic risks. Users should make cautious decisions based on their own risk tolerance and financial conditions.

#BTCMiningDifficultyDrop

TL;DR｜Key Points on Earning with DeFiThe essence of DeFi earning: earning market-driven returns by providing liquidity, lending assets, or contributing to network security.Main methods include staking, lending, and liquidity mining.Returns are driven by real demand, while risks mainly involve smart contract vulnerabilities, price volatility, and operational complexity.Compared to traditional finance (TradFi), DeFi earning requires no intermediaries, allows self-custody of funds, offers real-time interest accrual, and enables flexible strategy combinations.For beginners, using a DeFi yield aggregator (such as BenPay DeFi Earn) offers a friendlier, low-barrier entry into DeFi participation.
In the traditional financial world, our money often sits idle in low-yield savings accounts while banks profit handsomely from it. DeFi (Decentralized Finance) has fundamentally changed this paradigm, allowing anyone with an internet connection to become the “bank” itself. Through a variety of innovative mechanisms, crypto assets can generate ongoing yields. This guide provides a systematic explanation of DeFi earning mechanics, mainstream strategies, and safe practices using BenPay DeFi Earn as an example, helping you take control of your financial journey.
1. Where Does DeFi Crypto Earn Passive Income, and Is It Safe?
Simply put, every crypto you earn in DeFi is not some “digital illusion.” Like in the real world, returns follow the principle of “those who provide value, earn rewards.” Your yield comes from contributing essential services to decentralized networks, earning clear and transparent market-driven returns.
1.1 Providing Liquidity: Becoming an “Automated Market Maker” and Earning Trading Fees
When you deposit assets (e.g., USDC and ETH) into a liquidity pool, you essentially open an unattended trading window in a “public marketplace” accessible to everyone. Your funds facilitate instant trades for others, keeping the market liquid and efficient. In return, trading fees generated by the pool are automatically distributed proportionally to your contribution. The busier the pool, the higher your share. This transforms idle assets into productive capital, directly participating in market activity.
1.2 Lending Assets: Acting as a “Global Bank” and Earning Interest
You can deposit idle assets such as stablecoins into lending protocols like Compound or Aave. This is akin to placing your funds in a “global bank” operated by code, which lends to those in need. Your interest is determined by real-time supply and demand: more borrowers mean higher rates. Loans are typically over-collateralized and automatically liquidated to control risk, but during extreme market conditions, oracle failures, or network congestion, liquidation may be delayed, posing systemic or bad debt risk.
1.3 Contributing to Network Security: Staking Tokens and Earning Rewards
Blockchains like Ethereum and Solana use proof-of-stake (PoS) mechanisms, relying on token holders to stake assets to secure network operations. When you stake tokens (e.g., ETH), you effectively back the network’s reliability and participate in consensus. Rewards come from block emissions (inflation) and transaction fee sharing. This is both an investment and a contribution to building network infrastructure. Misbehavior or node failures may lead to partial slashing of staked assets.
The Economic Logic Behind DeFi Earnings
Whether from trading fees, lending interest, or staking rewards, DeFi earnings stem from the demand for capital and network services. As long as on-chain transactions, lending, hedging, and asset allocation occur, yield opportunities exist.
However, it is also necessary to understand that when market activity declines and the demand for leverage weakens, the overall return level will also fall in tandem. Therefore, DeFi returns are not fixed-rate products but rather floating returns that change with the market environment.
2. DeFi Earning vs. Traditional Finance: What's the Difference?
In traditional finance, capital efficiency is often constrained by time and procedural limitations. DeFi reconstructs the logic of earning through blockchain technology, transforming idle capital into real-time productive assets. Understanding these differences is key to seizing next-generation financial opportunities.
Traditional Finance (TradFi) is like depositing money in a large, closed reservoir. The flow of water (assets) is strictly controlled by the administrator (bank). You need to apply it to generate electricity from water (earn income), and efficiency depends on the administrator's dispatching speed.DeFi Earning involves placing assets into a transparent and interconnected smart water network. The movement of every drop of water (asset) is clearly visible. You can automatically direct water to the places where it is most needed (such as borrowing and providing liquidity) through smart contracts, receive real-time returns, and freely combine various pipelines (protocols) to maximize the efficiency of water (capital) utilization.
Core Differences3. DeFi Crypto Earn Methods & Beginner-Friendly Options
3.1 Lending – Acting as a “Bank.”
Mechanism: Deposit crypto assets (USDC, ETH) into protocols like Compound or Aave. Your funds enter a pool for borrowers, and you earn floating interest based on market demand. Stablecoins often provide more stable returns.Suitable for: Users seeking cash flow from idle assets and relatively steady strategies.Risks: Smart contract vulnerabilities, liquidation anomalies, liquidity risks during extreme market events.
3.2 Staking – Basic “Deposit Yield.”
Mechanism: Lock specific tokens (ETH 2.0, SOL) in a protocol to validate transactions and maintain network security. Rewards come from block issuance and transaction fee distribution.Suitable for: Long-term holders of major tokens who believe in ecosystem growth.Risks: Lock-up periods, inability to sell during market drops, and smart contract vulnerabilities.
3.3 Liquidity Mining – Becoming a “Market Maker” for Multiple Yields
Mechanism: Deposit two tokens proportionally (ETH/USDC) into a DEX pool (Uniswap, Curve) to provide liquidity. Earn trading fees, protocol incentives, and arbitrage benefits.Suitable for: Advanced users willing to assume market risk for higher combined returns.Risks: Impermanent loss — temporary losses compared to holding assets if price ratios change sharply. Stablecoin pairs reduce impermanent loss but may still face risks from de-peg or protocol failures.
From Single Strategy to Strategy Combination: The Emergence of Yield Aggregators
When mechanisms such as lending, staking, and liquidity mining start to be combined, cross-chain scheduled, and automatically reinvested, a single protocol is no longer sufficient to cover the optimal path. Thus, the DeFi Yield Aggregator came into being. This type of tool enables users to indirectly participate in yield farming without directly engaging in complex operations.

3. DeFi Crypto Earn Methods & Beginner-Friendly Options
3.1 Lending – Acting as a “Bank.”
Mechanism: Deposit crypto assets (USDC, ETH) into protocols like Compound or Aave. Your funds enter a pool for borrowers, and you earn floating interest based on market demand. Stablecoins often provide more stable returns.Suitable for: Users seeking cash flow from idle assets and relatively steady strategies.Risks: Smart contract vulnerabilities, liquidation anomalies, liquidity risks during extreme market events.
3.2 Staking – Basic “Deposit Yield.”
Mechanism: Lock specific tokens (ETH 2.0, SOL) in a protocol to validate transactions and maintain network security. Rewards come from block issuance and transaction fee distribution.Suitable for: Long-term holders of major tokens who believe in ecosystem growth.Risks: Lock-up periods, inability to sell during market drops, and smart contract vulnerabilities.
3.3 Liquidity Mining – Becoming a “Market Maker” for Multiple Yields
Mechanism: Deposit two tokens proportionally (ETH/USDC) into a DEX pool (Uniswap, Curve) to provide liquidity. Earn trading fees, protocol incentives, and arbitrage benefits.Suitable for: Advanced users willing to assume market risk for higher combined returns.Risks: Impermanent loss — temporary losses compared to holding assets if price ratios change sharply. Stablecoin pairs reduce impermanent loss but may still face risks from de-peg or protocol failures.
From Single Strategy to Strategy Combination: The Emergence of Yield Aggregators
When mechanisms such as lending, staking, and liquidity mining start to be combined, cross-chain scheduled, and automatically reinvested, a single protocol is no longer sufficient to cover the optimal path. Thus, the DeFi Yield Aggregator came into being. This type of tool enables users to indirectly participate in yield farming without directly engaging in complex operations.

4. Comparing DeFi Crypto Earn Methods
There are significant differences among various DeFi earning methods in terms of income sources, risk structures, and operational thresholds. Staking is more inclined towards the returns of the network layer. Lending and interest generation rely on the supply and demand of the capital market. Liquidity mining is part of yield cultivation, and its returns are tied to market activity. The yield aggregator integrates multiple yield sources through automated strategies, lowering the operational threshold for users to participate in complex strategies.
To have a more intuitive understanding of the income structure and risk levels of different methods, you can refer to the following table:

5. Why Beginners Should Use Aggregators
With more protocols and complex strategies, single protocols are insufficient to capture optimal yields. Users would otherwise need to frequently shift funds across chains and protocols — essentially performing “yield farming.” Core challenges include:
Multi-chain wallet managementHigh Gas feesProtocol selection complexityDifficulty in risk diversification
DeFi yield aggregators address these challenges, allowing beginners to participate with reduced operational complexity and risk.
6. BenPay DeFi Earn: Redefining DeFi Participation
BenPay DeFi Earn is a DeFi yield aggregator that integrates top multi-chain protocols, offering low-barrier, strategy-based auto-compounding stablecoin yields. Its streamlined design consolidates multiple protocols into a single entry point, letting users enjoy on-chain yields safely and conveniently without deep technical knowledge.
6.1 Core Pain Points in DeFi Participation& BenPay Solutions
Traditional DeFi requires managing multiple wallets, understanding complex strategies, paying for gas fees, and monitoring market risks — demanding time, knowledge, and creating operational barriers. BenPay simplifies this through:
Simplified Operations: One-click BenPay self-custodial wallet creation with Apple/Google accounts; no long mnemonic backups or complex wallet setups.Protocol Aggregation: Seamless access to Solana, AAVE, Compound, Morpho, Sky, Ethena, and other top protocols without switching interfaces.Cost Optimization: Core operations are exempt from gas fees, lowering costs, especially for small holders.
6.2 How to Participate in DeFi Earnings on BenPay
BenPay simplifies the complex on-chain asset allocation into four clear and simple steps, truly realizing the vision of "zero-basis participation in DeFi".
Connect Wallet: Create a BenPay wallet via Google/Apple account.Deposit Assets: Choose stablecoins and deposit across 10+ chains (Ethereum, Solana, Tron, BSC, Polygon, Arbitrum, Optimism, Base, etc.).Earn Yield: Select an amount and review protocol terms; yields settle daily, fully transparent.Partial Redemption: Withdraw fully or partially according to protocol rules.
All backend complexities — cross-chain transfers, gas fee payments, auto-compounding — are handled by audited smart contracts, giving users a simple interface and relatively stable returns without technical burden.
6.3 Safe Steps for Beginners
Understand First: Recognize BenPay as an aggregator; yields come from underlying protocols and are market-dependent.Start Small: Try with a small amount (e.g., $100) to experience connection, deposit, and yield monitoring.Choose Strategies Carefully: Initially favor more stable protocols with moderate APY fluctuations.Observe Long-Term: Monitor yield trends and asset changes, and gradually adjust allocations.

Conclusion: From User to Network Contributor
DeFi earning transforms participants from passive “depositors” into active market builders and value sharers. It represents the democratization of finance, but requires knowledge and caution. BenPay DeFi Earn exemplifies a key evolution: moving from tech-driven experimentation to user-focused, secure, and stable products. By removing technical barriers, it makes on-chain asset allocation simple and accessible.
For beginners, success lies not in chasing the highest APY, but in understanding risks, verifying processes, starting small, and learning continuously. Taking that first step means you are not only earning yield but contributing to the evolution of on-chain financial infrastructure.

Risk Disclaimer
DeFi yields stem from on-chain financial activity and are not principal-protected products. Risks include smart contract bugs, protocol anomalies, stablecoin de-pegging, extreme market volatility, and network congestion. Yield aggregator products, while improving usability, also expose users to underlying protocol risks. Users should fully understand mechanisms, assess personal risk tolerance, and take responsibility for on-chain operations.

#defi

Unitas, AAVE, Compound, Morpho, Sky, Ethena Protocols Stablecoin Yield Analysis and Risk Guide
As the DeFi (Decentralized Finance) ecosystem matures, stablecoin yields have become an important way for users to participate in on-chain finance and grow their assets. Unlike high-volatility assets, stablecoin yield products typically rely on lending interest, protocol savings rates, or market-neutral hedging strategies, allowing users to earn sustainable returns while controlling volatility.
This article analyzes the three leading DeFi stablecoin yield protocols — Unitas, AAVE, Compound, Morpho, Sky, and Ethena — and introduces how to access them through BenPay DeFi Earn, a one-stop platform for cross-chain management and yield aggregation.
A Quick Overview of DeFi Protocols: Yields, Risks, Liquidity, Etc

What risks need to be noted?All DeFi stablecoin yield protocols are subject to risks such as smart contract, liquidation, and strategy risks. The sources of risk vary among different agreements. This article only provides mechanism analysis and does not constitute any commitment to returns.

In-Depth Analysis of Mainstream DeFi Protocols
Is Unitas Stablecoin Yield Safe? Analysis of Composite Strategic DeFi Protocol
The Unitas protocol offers an innovative USD-denominated yield mechanism on the Solana network, primarily driven by a market-neutral strategy.
Source of Yield
Unlike traditional bank interest, Unitas yield is generated through a proprietary on-chain yield engine designed to capture trading-based returns:
Delta-Neutral Arbitrage: The protocol operates using Jupiter Liquidity Provider (JLP) pools. It deposits JLP as collateral while simultaneously opening an equivalent short position in the perpetual futures market.Funding Rate Capture: Through its delta-neutral positioning, Unitas locks in perpetual futures funding rate income, converting market trading demand into yield for stablecoin holders.Liquidity-Driven Returns: Additional yield comes from trading fees and arbitrage opportunities generated by market volatility. As a result, returns are decoupled from asset price movements and are instead positively correlated with overall market activity.
Yield Features
High Annualized Returns: In 2025, Unitas achieved an annualized yield of approximately 16.7%.Market Neutrality: The yield engine is designed to neutralize price volatility risk. Regardless of bull or bear market conditions, the protocol can continue generating returns as long as trading activity exists.Native Yield Accrual: Users simply hold Unitas stablecoins in their Solana wallets to receive yield distributions natively, without relying on traditional financial intermediaries.
Risk & Liquidity
Low Drawdown Risk: With modular risk controls and real-time monitoring, the protocol recorded a historical maximum drawdown of only -0.16% during volatile market conditions in 2025.Liquidity Protection:Overcollateralized Reserves: Backed by 130%–200% over-reserves in major stablecoins such as USDT and USDC.Permissionless Redemption: Users can freely and unconditionally redeem Unitas stablecoins for underlying USD stablecoins at any time.
How Is the Yield of the AAVE Protocol? Analysis of a Traditional Lending DeFi Protocol
Compared to Unitas’s more complex market-neutral strategy, Aave’s USDT/USDC yield mechanism—available on Solana, Ethereum, and other chains—is more traditional and straightforward.
Source of Yield
Pool-to-Peer Lending Interest:
All yield comes from interest paid by borrowers. When you deposit USDT or USDC, you provide liquidity to a lending pool. Borrowers lock up other assets (such as SOL or ETH) as overcollateralized collateral to borrow stablecoins and pay interest.Liquidation Penalty Sharing:
When a borrower’s collateral value drops and triggers liquidation, a portion of the liquidation penalty is distributed to the protocol and liquidity providers.
Yield Characteristics
Variable Market-Driven Returns:
APYs fluctuate in real time based on supply and demand in the lending market.High-Demand Periods: During bull markets or periods of strong leverage demand, USDT/USDC yields can spike (historically exceeding 20% for short periods).Normal Conditions: As of January 2026, typical annualized yields range between 2.5% and 3.6%.Transparent & Passive:
No user intervention is required. Yield accrues automatically per block and compounds over time.
Risk & Liquidity
Bad Debt Risk:
Although loans are overcollateralized, extreme market conditions combined with delayed liquidations could result in bad debt.Smart Contract Risk:
As a long-established protocol, Aave has a strong security track record, but theoretical risks of code vulnerabilities still exist.Safety Module Protection:
Aave maintains a Safety Module in which staked AAVE tokens serve as an insurance backstop against potential shortfalls.Very High Liquidity:
Users can usually withdraw funds at any time.Utilization Constraints:
Withdrawals may experience short delays only when pool utilization is extremely high (i.e., nearly all funds are borrowed), until borrowers repay or new deposits enter the pool.
How Does Compound Generate Stablecoin Yield? A Pool-Based Lending DeFi Protocol Explained
The Compound protocol is built on a traditional pool-based lending model, where yields are entirely driven by market demand for stablecoins rather than complex trading strategies.
Yield Sources
Borrower Interest Payments: When you deposit USDC or USDT into the Compound protocol, your assets are placed into a liquidity pool. Returns primarily come from borrowers—often seeking leverage or liquidity mining opportunities—who pay interest to borrow these stablecoins.COMP Token Incentives (Occasionally): Historically, Compound has distributed its governance token, COMP, to incentivize deposits and borrowing. During certain periods, these rewards significantly boosted effective yields.
Yield Characteristics
Floating Market Interest Rates: Interest rates automatically adjust in real time based on supply and demand within each pool.Current Yields (January 2026): Typically fluctuate between 2% and 4%.Extreme Scenarios: During periods of severe market volatility and surging borrowing demand, annualized yields can temporarily exceed 20%.cTokens: After depositing assets, users receive corresponding cTokens (e.g., depositing USDC yields cUSDC). The value of cTokens increases over time as interest accrues, representing both principal and earned yield.
Risk & Liquidity
Risks:Smart Contract Risk: Despite multiple audits and a long operating history, smart contract vulnerabilities remain a theoretical risk.Liquidation Risk: While loans are overcollateralized, sharp market crashes may prevent liquidation mechanisms from fully covering losses.Governance Risk: Protocol parameters are determined by COMP token holders through governance votes, which may affect future yield models or risk settings.Liquidity:High Liquidity: USDC and USDT markets generally maintain strong liquidity, allowing users to withdraw most funds at any time.Utilization Constraints: Similar to Aave, when most liquidity is borrowed, withdrawals may face short waiting periods.
Is Morpho Stablecoin Yield Safe? Analysis of the Lending-based DeFi Protocol Mechanism
Morpho is a decentralized lending infrastructure deployed on Ethereum. Its core module, Morpho Blue, provides highly customizable lending markets, while the Morpho Vault wraps this functionality for regular users, offering automated fund allocation and risk parameter management.
Source of Yield
Lending interest income: When users deposit funds into a Morpho Vault, the funds are automatically allocated to over-collateralized lending markets. Borrowers’ interest payments form the main source of yield.Different vaults are managed by third-party Risk Curators (e.g., Steakhouse, Gauntlet), who set lending parameters and risk constraints. Funds, however, are always executed by smart contracts according to these rules.
Yield Features
Accumulating share design: Vault shares increase in value as interest accrues (similar to wstETH), naturally achieving compounding without manual reinvestment.Parametric risk control: Strict Loan-to-Value (LLTV) ratios and liquidation mechanisms help mitigate defaults and extreme market events.
Risk & Liquidity
Smart contract risk: The protocol has undergone multiple audits but remains theoretically subject to contract risk.Liquidity and redemption: Users can redeem USDC or USDT immediately, provided the Vault has sufficient liquidity.
Sky Stablecoin Yield Mechanism: Is SSR Savings Rate Reliable?
Sky Protocol (evolved from the original MakerDAO system) issues the stablecoin USDS and provides an official savings mechanism via the Sky Savings Rate (SSR). Users who deposit USDS into SSR receive sUSDS, an accumulating certificate that grows automatically over time.
Source of Yield
Sky Savings Rate (SSR): Yield comes from the protocol’s overall operational revenue, including on-chain lending fees, protocol surplus, and real-world asset income (e.g., U.S. Treasury yields).SSR rates are determined and dynamically adjusted by Sky Governance.
Yield Features
Net-value growth asset: The quantity of sUSDS remains constant, but the amount of USDS redeemable increases over time.Stable performance: Compared to market-driven lending rates, SSR typically exhibits low volatility, suitable for conservative, long-term allocations.
Risk & Liquidity
Protocol and governance risk: Yield depends on Sky protocol operations and governance decisions.High liquidity: sUSDS can typically be redeemed for USDS anytime via official interfaces or DeFi markets, with no fixed lock-up.
Where Does Ethena USDe Stablecoin Yield Come From? Analysis of Strategic DeFi Protocols
Ethena USDe is a synthetic dollar (USDe), not backed by fiat reserves. It maintains relative stability through a Delta-Neutral (market-neutral) strategy.
Source of Yield
Hedged funding rates: The protocol holds spot assets while simultaneously taking hedged positions in derivatives markets. In markets where long positions dominate, short positions earn positive funding rates.sUSDe holder returns are reflected through the accumulation of value rather than periodic distributions.
Yield Features
Market sentiment correlation: Yields may increase during high-leverage, active long-market conditions and may decrease in extreme scenarios.Non-fixed income model: This is a strategy-based stablecoin yield, not traditional lending interest.
Risk & Liquidity
Negative funding rates & extreme market risk: Prolonged negative funding rates may reduce yield. Redemption typically involves a cooling period of around 7 days, though USDe itself can be traded instantly on DEXs (subject to potential slippage).
User Types and Protocol Recommendations
If you are seeking stable, low-volatility stablecoin yields, Sky, Morpho, AAVE, and Compound protocols are more suitable. If you are willing to accept some market fluctuations for potentially higher returns, the Unitas protocol is a good choice. If you can tolerate market sentiment–related risks, the Ethena protocol may offer the highest returns.

BenPay DeFi Earn: One-Stop Stablecoin Yield Gateway
If you have already understood the yield logic of Unitas, AAVE, Compound, Morpho, Sky, and Ethena protocols, the real challenge lies in: How to efficiently switch between different chains, different stablecoins, and different redemption rules?
For ordinary users, DeFi protocols are numerous, and the operations are complex. BenPay DeFi Earn, built on the BenFen public chain, condenses these operations into a single click, providing direct access to Morpho, Sky, Ethena, and other major protocols with transparent, on-chain yields.
Key Features
One-stop access: Unified entry to Morpho / Sky / Ethena / Aave / Compound / Solana for diverse yield options.Cross-chain convenience: Deposit BUSD (BenFen's core asset, pegged 1:1 to USD, minted via USDT/USDC) to automatically convert to the target protocol's stablecoin and redeem cross-chain.Auto-compounding: Yields automatically roll into principal with zero gas reinvestment.Risk control: Assets remain on-chain, fully under user control.Flexible redemption: Partial withdrawals are supported to optimize fund usage.
All Investment Targets Overview
A. SOL USD Investment
View Unitas Official Website
This investment target is based on the Unitas protocol, which runs a sophisticated trading strategy on Solana designed to isolate market price fluctuations and capture yield.
Core Mechanisms & Advantages:
Market-Neutral Strategy: Unitas uses hedging to reduce dependency on price movements of assets like SOL, generating yield primarily from market activity rather than directional price changes.On-Chain Trading Fee Income: A portion of the protocol’s funds is deployed to provide liquidity on major Solana ecosystem trading platforms, earning continuous trading fee revenue.Funding Rate Income: Unitas simultaneously opens opposing positions in derivative markets to hedge market volatility while capturing funding rate income generated by long–short market structures.
By combining these two relatively uncorrelated income sources—trading fees and funding rates—Unitas creates a more stable and predictable yield model. Compared with a model relying solely on lending interest, it adapts better across different market environments.
B. AAVE USDC/USDT Investment
View Official Website: AAVE USDC / AAVE USDT
This investment target is based on AAVE, a decentralized lending protocol deployed across multiple major blockchains.
Core Mechanisms & Advantages:
Open Liquidity Lending Market: Your assets continuously grow within an open liquidity market.Real Lending Interest Yield: AAVE operates like a transparent digital bank. When you deposit stablecoins, they become part of the global liquidity available for borrowers, including traders and dApps. In return, interest paid by borrowers is distributed to all depositors.Dynamic Interest Rates: Rates are determined by market demand; the higher the borrowing demand, the higher the deposit yield, which automatically compounds into your asset growth.
C. Compound USDC/USDT Investment
View Official Website: Compound USDC / Compound USDT
This investment target is based on Compound, a well-established decentralized lending protocol deployed across Ethereum and other blockchains.
Core Mechanisms & Advantages:
Asset Shares Appreciate with the Pool: When you supply assets to Compound’s lending market, you receive a portion of the pool as your “shares.”Interest Accrual: As borrowers continuously pay interest, the total value of the pool grows. Your share percentage remains the same, so the value of your portion increases proportionally, automatically compounding over time.
D. Morpho USDC Investment
View Official Website: Morpho USDC
The underlying layer of this target is a lending vault connected to the Morpho protocol, a new-generation, efficient fund-matching system on Ethereum.
Core Mechanism and advantages:
Institutional-grade vault management: Professional institutions manage and allocate funds.Real borrowing demand: Allocated to whitelisted institutional borrowers or DeFi protocols; yield comes directly from borrower interest.Share appreciation: Vault shares increase as interest accrues, no manual compounding required.
E. Morpho USDT Investment
View Official Website: Morpho USDT
The underlying layer of this target is connected to the Morpho protocol's lending vault. Through intelligent algorithms, funds are lent to over-collateralized institutional borrowers to achieve stable lending returns.
Core Mechanism and advantages:
Borrowing interest: Yield comes entirely from real borrower interest; may increase when market demand rises.Preferred collateral: Managed by Gauntlet using risk models to accept high-liquidity collateral.Dynamic allocation & real-time accrual: Smart contracts continuously monitor market, ensuring full collateral for each loan; interest accrues per block automatically.
F. Sky USD Investment
View Official Website: Sky USD
This underlying asset is connected to the official savings system of the Sky protocol (formerly MakerDAO) and is widely regarded as a cornerstone earning solution in the DeFi stablecoin system.
Core Mechanism and advantages:
Protocol surplus distribution: Revenue from US Treasuries and on-chain lending is distributed via SSR.Accumulating certificate: sUSDS automatically increases redeemable value over time.Stable, long-term allocation: Backed by real-world assets and mature DeFi risk management.
G. Ethena USDe Investment
View Official Website: Ethena USDe
The underlying source of this target is the Ethena protocol, which issues a "Synthetic Dollar". This income plan does not rely on the traditional lending market but achieves stable rate income through precise hedging trading strategies.
Core Mechanism and advantages:
Delta-Neutral strategy: Buy spot + sell futures to hedge price risk, earning funding rate.Multiple yield streams: Fee income + staking rewards from underlying Ethereum assets.
Note: Protocols have undergone multiple audits, but on-chain contracts still carry technical risk. Users should evaluate carefully.
Operation Overview
Deposit BUSDCross-chain conversion to the target protocol stablecoinAuto-deposit into Vault / contract / strategy poolYield accrualRedeemAAVE / Compound / Morpho / Sky: instantSolana / Ethena: Approximately 10-day redemption cycleAutomatic cross-chain conversion back to BUSD
For detailed steps, you can visit the BenPay DeFi Earn user guide.
BenPay DeFi Earn — Quick Overview of Stablecoin Yield Targets
The following table provides a quick comparison of the stablecoin yield strategies currently available through BenPay DeFi Earn.

*APY is indicative based on historical data; actual yields depend on real-time on-chain performance and are not guaranteed.

If you wish to uniformly manage the returns of stablecoins without frequently switching blockchains and protocols, you can participate in the above strategies in one stop through BenPay DeFi Earn. The entire process is on-chain transparent, and income is automatically compounded.
Summary
With BenPay DeFi Earn, users can flexibly allocate between infrastructure type (AAVE/Compound), conservative (Sky / Morpho), strategic (Ethena), and composite strategic (Unitas) DeFi protocols according to their risk appetite. The entire process is on-chain transparent, cross-chain simplified, non-custodial, enabling participation without mastering complex DeFi operations.

Risk Notice: This article is for informational purposes only and does not constitute investment advice. DeFi protocols carry smart contracts and market risks; users should evaluate independently before participation.

#BenPay #defi

If you are searching for a safer way to access on-chain yield while avoiding risks such as token price volatility, complex DeFi mechanics, and high-risk long-tail assets, you are not alone. Most users want consistent returns without exposing their assets to unstable yields or opaque protocol risks. BenPay DeFi Earn is designed specifically for this need—providing a security-first way to access on-chain yield with simplified operations.
Why Traditional DeFi Yield Is Risky for Most Users
Traditional DeFi yield products often rely on volatile governance tokens and liquidity incentives, exposing users to constant price fluctuations and the risk of impermanent loss.
In practice, earning yield usually means manually interacting with multiple DeFi protocols, paying high gas fees, and executing complex on-chain transactions, while the actual source of returns is not always clearly explained.
Taken together, these factors increase operational complexity and risk, making it difficult for most users—especially beginners — to participate in on-chain yield in a sustainable and controlled way.
BenPay DeFi Earn: A Safer Approach to DeFi Yield Access
BenPay DeFi Earn is built as a self-custodial on-chain tool that reduces operational and asset-level risk by integrating only blue-chip protocols and providing clear, on-chain visibility into how funds are deployed.
Curated Blue-Chip Protocols with Audited Security
The platform integrates only well-established, blue-chip DeFi protocols, filtering out high-risk, long-tail assets. All smart contracts have been audited by SlowMist, ensuring a transparent and security-focused yield environment.
Institutional Backing and Strong Project Foundations
BenPay DeFi Earn is incubated and backed by BIXIN Ventures, providing a solid foundation and additional confidence in the project’s long-term development and fund security.
One-Click Participation Mechanism for Beginner-Friendly DeFi Yield
With a single click, users can access on-chain yield without manually managing cross-chain transfers or token swaps, significantly reducing complexity and saving time.
Combined with transparent yield reporting, flexible redemption options, and an automated compounding mechanism that reinvests returns without additional gas costs, BenPay DeFi Earn makes on-chain yield more controllable, more reassuring, and better suited for long-term participation.
BenPay DeFi Earn vs. Traditional DeFi Yield

How Does BenPay DeFi Earn Work?
User Wallet → BenPay DeFi Earn → Curated DeFi Protocols → On-Chain Yield → Redemption
No asset custody by BenPayOne-click operationTransparent yield sources and risk disclosuresSupports cross-chain stablecoin deposits (Ethereum, Solana, Tron, BSC, Polygon, Arbitrum, etc)
Who Should Use BenPay DeFi Earn?
BenPay DeFi Earn enables users to access passive on-chain yield with just one click, significantly simplifying cross-chain transfers and asset swaps. Reducing operational complexity and costs helps users manage yield more efficiently. It is perfect for:
Stablecoin holders seeking predictable on-chain yieldDeFi beginners wanting an easy, intuitive startLong-term users who value capital safety, transparency, and self-custody
Reducing operational complexity and costs helps users manage yield efficiently, making it a natural choice for anyone looking for secure passive income with stablecoins.
FAQ – Safe On-Chain Yield with BenPay DeFi Earn
Q1: Is BenPay DeFi Earn safe for beginners?
Yes. It uses audited smart contracts, only integrates blue-chip protocols, and provides a one-click, user-friendly interface.
Q2: Which stablecoins are supported?
USDT and USDC cross multiple chains, including Ethereum, Solana, Tron, BSC, Polygon, and Arbitrum.
Q3: How are returns compounded?
Returns are automatically reinvested without additional gas fees, simplifying management and reducing operational risk.
Q4: Can I earn passive income without complex DeFi steps?
Yes. The one-click mechanism allows users to access yield without manual swaps or cross-chain management.
Q5: Which protocols does BenPay integrate for stablecoin yield?
Only audited, blue-chip DeFi protocols (Solana, AAVE, Compound, Morpho, Sky, Ethena) are used, reducing exposure to high-risk assets.
Start Earning On-Chain Yield More Safely
If you are ready to earn an on-chain yield more safely, BenPay DeFi Earn offers a secure and user-friendly starting point.
Explore BenPay DeFi Earn now and turn your stablecoins into sustainable on-chain income.
#BenPay #defi

A Detailed Explanation of BenPay's Self-Custody and Fund Security Mechanism
The security of an on-chain yield card fundamentally hinges on three elements: whether assets are under user self-custody, whether fund flows are fully verifiable on-chain, and whether the yield strategy originates from secure and transparent curated protocols. The BenPay On-Chain Yield Card achieves the unification of secure yield generation and instant spending through its "self-custody" architecture and the automated execution of on-chain smart contracts, while ensuring users' absolute asset control. This article aims to objectively analyze the security design of the BenPay On-Chain Yield Card, covering its self-custody principles, smart contract guarantees, and the risk control logic behind its curated yield strategies.
I. The Core Security Foundation: The Essential Difference Between Self-Custody and Traditional Custody
The security cornerstone of the on-chain yield card is self-custody. This means private keys are entirely user-controlled, and assets always reside in the user's personal blockchain address; the platform cannot access them. This is fundamentally different from entrusting assets to a centralized platform, as detailed in the comparison below:

II. In-Depth Security Mechanisms: How the On-Chain Yield Card Safeguards Funds and Yield
II.1 Technical Foundation: Smart Contracts Ensure Process Security
Fund security is automatically guaranteed by audited, public on-chain smart contracts, with a transparent and verifiable process:
Deposit & Lock: When a user deposits stablecoins, the funds are locked in a public smart contract.Strategy Execution: After enabling interest generation, the contract automatically deploys card accounts' idle balances to rigorously vetted mainstream DeFi yield protocols.Yield Compounding: Generated interest is automatically credited to the contract balance, enabling reinvestment.Instant Spending: During a purchase, the contract automatically settles the required amount and completes the payment. Funds always circulate within an on-chain loop secured by the user's private key.
II.2 Yield Security: Curated Strategies and Risk Control
The security of "yield generation" is a core aspect of this product. Its safety stems not from high-risk speculation but from prudent strategy design:
Protocol Vetting Criteria: Only integrates blue-chip DeFi protocols (such as Aave, Compound) that have undergone long-term market validation and are based on over-collateralization, avoiding nascent or structurally complex risky protocols.Risk Diversification: Funds are distributed across multiple robust protocols via smart contracts, preventing total loss from a single point of failure.Real-Time Monitoring & Transparency: The asset allocation and performance of all strategies are publicly visible on-chain, allowing for real-time monitoring by any third party.
II.3 Operational Security: Ultimate Responsibility and Tools for Private Key Management
In the self-custody model, user management of private keys is the final security barrier. The on-chain yield card guides best practices through its design:
Hardware Wallet Compatibility: Supports connection to mainstream hardware wallets, enabling offline private key storage and providing the highest level of security isolation for assets.Non-Custodial Design: The platform does not store and cannot recover user private keys or seed phrases, eliminating the risk of centralized database breaches at its root.Security Guidance: Provides clear security education at critical operation points, reminding users to perform offline backups and assume self-custody responsibility.
III. Direct Answers to Common Security Questions (Q&A)
Q1: If the issuing party ceases operations, will my assets be affected?
A: No. Because the assets always remain in the blockchain smart contract, controlled by your private key. Even if related services are discontinued, you can still interact directly with the contract via a blockchain explorer to withdraw your assets independently.
Q2: Where are the funds for yield generation placed? How is the security of these DeFi protocols ensured?
A: Funds are automatically deployed by the smart contract to the aforementioned curated blue-chip DeFi protocols. These protocols have undergone long-term real-world testing, multiple code audits, and employ over-collateralization models, with their security widely recognized within the industry. The platform continuously monitors the health of these protocols.
Q3: During payment, how are my transaction privacy and overall fund security maintained?
A: Payment involves only the settlement of a portion within the smart contract. Your total asset balance and other transaction history remain securely protected by your private key. All transactions are visible on-chain but are linked only to anonymized address information, offering a different privacy characteristic compared to traditional banks.
Conclusion
The BenPay On-Chain Yield Card constructs a tripartite solution that unifies security, yield, and liquidity by integrating self-custody asset control, the transparent automation of on-chain smart contracts and blue-chip protocols. Its security model can be summarized as: user-controlled private keys + publicly executed contracts + prudently selected strategies, offering a dependable tool for users who prioritize asset sovereignty and capital efficiency.

#MarketRebound #BenPay

Are Crypto Yield Cards Safe? Where Does the Yield Come From? Does Spending Affect Earnings? Are There Hidden Fees?
With the emergence of crypto yield cards, more users are beginning to explore ways to generate on-chain yield from their crypto assets while using them for everyday spending. However, for first-time users, the most important questions are not whether they “can earn,” but whether the yield mechanism is transparent, the risks are controllable, and the costs are clearly disclosed.
This article breaks down the key considerations beginners must understand before using a crypto yield card for the first time — covering yield sources, fees, risks, security, and operational flow—to help you avoid up to 90% of common pitfalls.
What Is a Crypto Yield Card?
A crypto yield card (also known as an on-chain yield card) is a new type of crypto payment product designed around the concept of “earn while you spend.” While retaining the functionality of a traditional crypto payment card, it allows idle balances to participate in on-chain DeFi protocols and generate yield while waiting to be used for payments. Unlike conventional crypto cards—where funds remain idle until spent—crypto yield cards emphasize capital efficiency: assets continue to work instead of sitting unused.
Example: BenPay Self-Custodial Crypto Yield Card
BenPay Yield Card is a Web3 crypto payment card you can earn while you spend, built on self-custodial architecture, with verifiable on-chain yield.
Key features include:
Self-custody Web3 model: users retain private keys, with full control over assetsCard account balances can be activated for earning coins with a single click (requires user initiation)Curated blue-chip DeFi protocols, yielding annualised returns starting from 3% (non-fixed, non-guaranteed)Daily spending does not affect yield-earning status (card account balance used for earning, card balance used for spending)Returns are settled daily with on-chain transparency; automatically compoundable or redeemable at any time
What Do Beginners Care About Most?
For novices encountering crypto yield cards for the first time, the real concern is seldom whether profits can be made, but rather whether the revenue logic is transparent, usage costs are manageable, and potential risks are disclosed upfront. Centred around these core questions, users typically focus on the following aspects:
Do I retain control over my funds?Is the source of returns transparent and reliable?Is it secure, and are there any hidden risks?What are the fees like?Is it straightforward to operate?
Addressing these key points can help newcomers get started safely and avoid pitfalls.
Key Point One: Is the fund self-custodied? This is the first threshold.
The aspect most easily overlooked by novices is control over funds.
Take BenPay Card as an example: it employs a self-custodied Web3 model where users hold their own private keys, granting them complete control over funds with zero platform interference. All fund flows can be verified on-chain, a feature of particular importance for beginners.
Key Point Two: Where does the revenue from crypto mining cards originate? Is it transparent and reliable?
This is the second key point for novices to determine whether a yield-generating card is ‘reliable’. The returns from such cards do not originate from ‘platform distributions’, but rather from on-chain DeFi protocols.
Taking the BenPay Card as an example, once a user activates yield generation, the card account balance participates via smart contracts in security-audited blue-chip DeFi protocols.
It is crucial to emphasise:
Returns are neither fixed nor guaranteedMarket volatility and protocol risks existWhile smart contracts undergo audits, this does not equate to zero risk
Key Point Three: Are crypto mining cards secure? Are there any hidden risks?
It must be made clear that even audited on-chain protocols do not equate to zero risk. Potential risks include:
Smart contract vulnerabilitiesProtocol liquidation or liquidity risksSignificant market volatility
Products such as BenPay explicitly display risk warnings before users activate coin earning, emphasising that returns are neither guaranteed nor assured. Users may choose whether to participate at any time.

Key Point Four: What about the fees? Are there any hidden costs?
The true cost of earning-coin cards extends beyond the annualised yield figures.
A point often overlooked by newcomers is that multiple fees may arise during actual usage, such as:
Gas fees incurred for on-chain transactionsCross-chain deposit or withdrawal costsService fees or monthly charges associated with different card types
Taking the BenPay Card as an example, distinct card variants offer variations in deposit methods, monthly fees, and usage scenarios. With transparent fee structures, users can select the most suitable plan based on their spending frequency and usage requirements.

Key Point Five: Is the operation straightforward? Can novices get started without difficulty?
For novices, even the safest products can lead to errors if their operation is overly complex. A qualified earning card should:
Require no understanding of complex DeFi protocolsClear activation and deactivation of yield farming logicTransparent display of earnings, balances, and transaction history
Taking the BenPay Card as an example, users simply activate the yield farming feature after acknowledging risks. The system then handles subsequent operations via smart contracts, with earnings and fund status viewable on-chain. Novices need not engage in frequent manual management.

Quick Checklist for Beginners to Avoid Pitfalls
For newcomers, the key considerations when selecting a crypto card are: whether it offers self-custody, whether returns are transparent, whether risks are clearly stated, whether fees are explicit, and whether operations are controllable. Before using a crypto card for the first time, you can quickly cross-reference the following checklist:
Self-custody status: Are private keys held by you, and are funds on-chain and traceable?Clarity of revenue sources: Are they transparent and verifiable on-chain?Clear risk disclosure: Is risk explicitly highlighted?Frequency of on-chain operations: Are frequent on-chain actions required, and are clear operational instructions provided?
Conclusion: What kind of user is suited to the Crypto Yield Card?
The Crypto Yield Card is not a ‘get-rich-quick scheme’, but rather a novel approach to asset utilisation: it ensures your assets remain actively deployed during your spending period, rather than lying idle, continuously generating returns through a relatively stable appreciation mechanism.
It is more suitable for:
Those seeking to simplify on-chain operationsIndividuals prioritising a stable experienceUsers wishing to generate additional value from idle funds
It is not suitable for:
Those pursuing high leverage or short-term high returnsIndividuals frequently engaging in high-risk DeFi operations
For novices, understanding the mechanisms, managing expectations, and prioritising risk awareness will always be more important than any return figures.
#MarketRebound

With more and more merchants and payment networks accepting cryptocurrency assets, crypto payment cards are gradually evolving from "whether they can be used" to "how to use them more efficiently". In this process, crypto cashback cards and crypto yield cards (also known as on-chain yield cards) have become the two most commonly compared products by users.
They all seem to be able to "generate profits while being used", but the essential differences are very obvious in the sources of income, risk structure, asset control, and target audience. This article will focus on comparing these key points and using the BenPay Card as a specific case for analysis.
Crypto Cashback Card vs. Yield Card: What Is the Essential Difference?
The crypto cashback card is based on the premise of "completing the consumption", and returns cash, tokens, or points in proportion after the transaction occurs; without consumption, there is usually no income. The crypto yield card is based on "asset balance". After the user actively activates the earning function, the funds participate in the on-chain DeFi protocol through smart contracts. Even if there is no consumption, the idle balance may continue to generate income. Essentially, the cashback card is a consumption incentive tool, while the yield card is an asset efficiency tool.
Core Comparison Between the Crypto Cashback Card and the BenPay Yield Card
Taking BenPay yield card and common cashback crypto card as examples, the differences between the two types of products are mainly reflected in the following aspects:Yield Model
BenPay Yield Card:
Utilizes a self-custodied Web3 on-chain yield mechanism. Card account balances can participate in on-chain yield strategies, with annualized returns starting from 3% (actual yield levels depend on the selected on-chain protocols and prevailing market conditions). Yields are settled in real time, and funds can be withdrawn or spent at any time.
This model is built on blockchain technology and DeFi protocols in a fully decentralized manner, ensuring transparency and security while avoiding reliance on centralized intermediaries.Traditional Crypto Cashback Card:
Relies on cashback programs, returning a certain percentage of spending in cash or reward points. Cashback typically comes with caps, and the reward rates are generally modest.
This model does not involve blockchain-based or decentralized yield strategies and, therefore, cannot generate additional returns through on-chain protocols.
Risk Management
BenPay Yield Card:
Risks primarily arise from fluctuations in DeFi protocols and changing market conditions. To mitigate these risks, the platform selects established blue-chip DeFi protocols and applies multiple security measures, such as smart contract audits and on-chain self-custody.
User assets remain under self-custody at all times, with private keys fully controlled by the user, ensuring complete ownership and control.Traditional Crypto Cashback Card:
Generally considered lower risk, with risks mainly related to card security and the financial stability of the card issuer or partner banks. Since cashback rewards depend on merchant partnerships and card limits are subject to bank approval, users have limited control over fund security and risk management.
Asset Control
BenPay Yield Card:
Users retain full control over their assets through a self-custody model. Private keys are held by the user, and all actions—such as deposits, withdrawals, or yield claims—require user authorization. Card balances remain fully under user control, minimizing reliance on third parties.Traditional Crypto Cashback Card:
Card issuers maintain significant control. Spending limits, cashback structures, and reward rules are determined by the issuing institution.
Users do not have full custody of their funds, and card usage terms may be affected by policy or regulatory changes from banks or payment providers.
Value Accrual & Payment Functions
BenPay Yield Card:
Supports both on-chain yield generation and global payments. Funds can be used for everyday spending while simultaneously participating in on-chain value accrual.
Card balances can earn yield through DeFi protocols and be flexibly transferred for payments.Traditional Crypto Cashback Card:
Rewards are primarily provided through spending-based cashback. This model does not support asset yield generation and is limited to consumption-driven incentives.
If a user’s primary needs are global payments and asset value growth, the BenPay Yield Card offers greater flexibility and long-term value accrual potential. If the user prefers immediate spending rewards, a crypto cashback card may be a better fit. Each option serves different priorities, and the choice ultimately depends on the user’s preferences regarding payment methods, asset value growth, and spending rewards.

Yield Model
BenPay Yield Card:
Utilizes a self-custodied Web3 on-chain yield mechanism. Card account balances can participate in on-chain yield strategies, with annualized returns starting from 3% (actual yield levels depend on the selected on-chain protocols and prevailing market conditions). Yields are settled in real time, and funds can be withdrawn or spent at any time.
This model is built on blockchain technology and DeFi protocols in a fully decentralized manner, ensuring transparency and security while avoiding reliance on centralized intermediaries.Traditional Crypto Cashback Card:
Relies on cashback programs, returning a certain percentage of spending in cash or reward points. Cashback typically comes with caps, and the reward rates are generally modest.
This model does not involve blockchain-based or decentralized yield strategies and, therefore, cannot generate additional returns through on-chain protocols.
Risk Management
BenPay Yield Card:
Risks primarily arise from fluctuations in DeFi protocols and changing market conditions. To mitigate these risks, the platform selects established blue-chip DeFi protocols and applies multiple security measures, such as smart contract audits and on-chain self-custody.
User assets remain under self-custody at all times, with private keys fully controlled by the user, ensuring complete ownership and control.Traditional Crypto Cashback Card:
Generally considered lower risk, with risks mainly related to card security and the financial stability of the card issuer or partner banks. Since cashback rewards depend on merchant partnerships and card limits are subject to bank approval, users have limited control over fund security and risk management.
Asset Control
BenPay Yield Card:
Users retain full control over their assets through a self-custody model. Private keys are held by the user, and all actions—such as deposits, withdrawals, or yield claims—require user authorization. Card balances remain fully under user control, minimizing reliance on third parties.Traditional Crypto Cashback Card:
Card issuers maintain significant control. Spending limits, cashback structures, and reward rules are determined by the issuing institution.
Users do not have full custody of their funds, and card usage terms may be affected by policy or regulatory changes from banks or payment providers.
Value Accrual & Payment Functions
BenPay Yield Card:
Supports both on-chain yield generation and global payments. Funds can be used for everyday spending while simultaneously participating in on-chain value accrual.
Card balances can earn yield through DeFi protocols and be flexibly transferred for payments.Traditional Crypto Cashback Card:
Rewards are primarily provided through spending-based cashback. This model does not support asset yield generation and is limited to consumption-driven incentives.
If a user’s primary needs are global payments and asset value growth, the BenPay Yield Card offers greater flexibility and long-term value accrual potential. If the user prefers immediate spending rewards, a crypto cashback card may be a better fit. Each option serves different priorities, and the choice ultimately depends on the user’s preferences regarding payment methods, asset value growth, and spending rewards.

How to Choose: BenPay Yield Card or a Crypto Cashback Card?
When choosing between the BenPay Yield Card and a crypto cashback card, users can make a decision based on their own needs. Each option has its own strengths and is designed for different use cases.
If you prioritize instant cashback, low learning cost, and pure spending rewards, a crypto cashback card may be more suitable.If you value asset ownership, on-chain transparency, and long-term asset efficiency, the BenPay Yield Card is likely the better choice.
Payment Compatibility
BenPay Yield Card: Supports global payments for both online and offline use, making it suitable for a wide range of payment scenarios worldwide.Crypto Cashback Card: Also supports global payments, but may face certain limitations depending on partner merchants or payment channels, subject to the issuing institution.
Spending Limits
BenPay Yield Card: Some card tiers offer relatively higher spending limits, making them suitable for frequent spending or large payments, especially in scenarios such as business travel.Crypto Cashback Card: Typically comes with spending limits, particularly for new users or users with lower credit profiles, who may find it harder to obtain higher limits.
Reward Model
BenPay Yield Card: By allocating the card account balance into on-chain yield mechanisms, users can earn returns while spending. This model is suitable for users who wish to improve asset efficiency through on-chain yield participation.Crypto Cashback Card: Primarily relies on spending-based cashback. Cashback rates are usually modest and often capped, focusing on immediate rewards rather than long-term asset growth.
Cross-Chain Operations and Fees
BenPay Yield Card: Supports multiple blockchains, allowing users to choose the most suitable network based on their needs, potentially lowering transaction fees and increasing operational flexibility.Crypto Cashback Card: Most rely on traditional payment settlement systems and do not directly interact with on-chain protocols. As a result, they generally do not support cross-chain asset management, offering limited flexibility in on-chain fund usage.
If your primary goal is global payments combined with asset efficiency and long-term value creation, the BenPay Yield Card offers greater flexibility and long-term potential. If you prefer instant consumption rewards, a crypto cashback card may better align with your needs. Ultimately, the choice depends on your preferences regarding payment methods, asset efficiency, and spending rewards.

Who Is the BenPay Yield Card Designed For?
The BenPay Yield Card is not designed solely for crypto enthusiasts—it addresses the needs of multiple user groups. Compared with traditional crypto cashback cards, the Yield Card offers a more efficient and flexible way to grow assets while balancing everyday payments and asset allocation. Specifically, it is well suited for the following users:
• Crypto Beginners
For users who are new to cryptocurrency, the BenPay Yield Card offers a low-barrier entry to on-chain yield generation. Users do not need to understand complex crypto mechanics to benefit from automated value accrual. Once on-chain yield is enabled, the entire process is automated, allowing assets to grow without additional manual operations.
• DeFi Users
For users familiar with DeFi and on-chain strategies, the Yield Card provides a convenient gateway to participate in selected on-chain yield strategies. Unlike traditional DeFi participation, users are not required to actively manage positions. Assets remain liquid while earning yield, making them readily available for everyday spending.
• Cross-Border Business Professionals
The Yield Card supports global payments with high spending limits, making it suitable for frequent travelers and cross-border business users. Whether domestically or overseas, the card integrates seamlessly with mainstream POS terminals and digital payment platforms such as Apple Pay, Google Pay, and WeChat Pay, delivering a smooth and convenient payment experience.
• Long-Term Crypto Holders
For users who believe in the long-term value of crypto assets but still require liquidity, the Yield Card offers an ideal balance. Users can allocate part of their holdings to the card, enabling daily spending while participating in on-chain value accrual—maintaining flexibility without leaving assets idle.
• Traditional Finance Users
Traditional finance users seeking exposure to crypto-based value growth can also benefit from the Yield Card. It provides the same convenience as traditional payment tools, while adding on-chain yield generation and value accrual. This allows users to access crypto-based returns without changing their existing spending habits.
Summary
Crypto cashback cards focus on making spending more rewarding, while yield cards focus on ensuring assets do not remain idle. If your goal is instant rewards and simplicity, a cashback card may be sufficient.
If you place greater emphasis on asset control, on-chain transparency, and long-term value growth, crypto yield cards—represented by the BenPay Yield Card—offer a more suitable choice.

Introduction
As the DeFi ecosystem continues to mature, opportunities to earn on-chain yield are no longer scarce. What truly holds users back is not the lack of opportunities, but the barriers to participation. Opaque protocol mechanisms, highly specialized rules, unclear fund flows, and complex operational steps often discourage users. Even when users recognize that their assets could be deployed more efficiently, many still choose to wait on the sidelines or leave funds idle for extended periods.
To address these challenges, BenPay launched DeFi Earn in late September 2025 as a unified gateway to multi-chain DeFi protocols. Without mastering complex interactions, users can seamlessly connect their assets to protocols such as Solana, Compound, and AAVE, enabling efficient on-chain yield generation. Since launch, DeFi Earn has received strong market feedback. As of January 2026, assets allocated to the Solana protocol within BenFen have reached 10.75M BUSD, while total network deposits have exceeded 20.73M USD, accounting for nearly half of all on-chain holdings—demonstrating the high utilization and adoption of BenPay DeFi Earn.

To further enhance user experience and accommodate diverse risk preferences and liquidity needs, BenPay DeFi Earn now officially introduces four new investment targets: Morpho USDC, Morpho USDT, Sky USD, and Ethena USDe, offering users more flexible and diversified on-chain growth options.
I. The Goal of BenPay DeFi Earn: Transparent, Simplified, and Diversified Yield Experiences
Since its launch, BenPay DeFi Earn has focused on improving user experience through on-chain transparency, simplified operations, and diversified yield strategies.
On-Chain Transparency and Traceability: Building User Trust
For every investment target on BenPay DeFi Earn, asset flows and yield sources can be verified on-chain in real time. User funds always operate directly within the underlying protocols. BenPay does not custody, touch, or reallocate user assets at any point. This design reflects BenPay’s commitment to the BenFen self-custody model: users always retain control of their private keys, and all fund movements remain transparent and traceable on-chain.
Simplified Operations and Optimized UX: From Complexity to One Click
The operational threshold remains a major pain point in DeFi. Traditional participation often involves multiple steps such as cross-chain bridging, protocol interactions, and yield compounding. BenPay DeFi Earn abstracts these processes into the backend. Users simply select an investment target and deposit with one click. The system automatically handles cross-chain transfers, protocol interactions, and yield accumulation—making on-chain yield participation more intuitive and accessible.
Diversified Yield Strategies: Matching Multi-Dimensional Needs
Rather than focusing on a single yield type, BenPay DeFi Earn offers a strategy matrix that caters to different risk appetites, liquidity requirements, and ecosystem preferences:
Conservative strategies: Compound USDC/USDT Earn and AAVE USDC/USDT Earn, offering relatively stable returns and high liquidity for users prioritizing capital preservation and low volatilityGrowth-oriented strategies: Solana USD Earn, built on high-yield Solana ecosystem protocols, have higher potential returns and are suitable for users with higher risk tolerance seeking growth potential
While Solana, Compound, and AAVE provide on-chain yields, they also have limitations. Solana offers higher returns but requires a 10-day redemption period, which may not suit users with higher liquidity needs. Compound and AAVE deliver stable returns, but may not satisfy users seeking higher yields during volatile market conditions. To further enhance the product experience, BenPay DeFi Earn introduces four additional yield options to expand user choice.

II. Detailed Explanation of the Four New Targets in BenPay DeFi Earn: A DeFi Protocol Choice for Stable Returns
The four newly added investment targets are selected from mainstream DeFi protocols that have long operated and are widely used in the Ethereum ecosystem. These protocols have operated for extended periods, manage tens of billions of dollars in on-chain assets, and feature transparent mechanisms with publicly verifiable track records. For users, this not only lowers the threshold for understanding and participation but also, to a certain extent, reduces the uncertainty brought about by the immaturity of protocols, making asset operations more reassuring and predictable.
Morpho USDC Earn: Institutional Risk Control + On-Chain Lending Interest
Morpho USDC Earn investment target closely resembles a traditional financial activity: lending funds to borrowers with real demand and earning interest. The difference lies in its on-chain execution via Morpho’s Vault model. Instead of pooling funds into a single mixed-liquidity pool, users' USDC are deposited into professionally managed lending vaults. Funds are allocated only to whitelisted institutional borrowers or decentralized protocols that pass strict screening criteria.
Interest paid by borrowers continuously accrues to the vault, increasing its total value and, in turn, the value of each vault share. Under current market conditions, this target offers an annualized yield of approximately 4.09%, primarily derived from stable lending interest.
As funds operate within highly liquid on-chain lending markets, the product supports instant deposits and redemptions, balancing liquidity with steady yield accumulation. All lending relationships, fund flows, and yield sources are verifiable on-chain—combining institutional-grade risk management with on-chain transparency.

Morpho USDT Earn: Algorithm-Driven Dynamic Lending Returns
Morpho USDT Earn is also built on Morpho’s lending framework, but differs noticeably from Morpho USDC Earn in both yield behavior and user experience. From a user perspective, the USDC Earn emphasizes relatively stable returns with a clear and predictable interest structure, while the USDT Earn more directly reflects changes in market liquidity supply and demand, resulting in slightly higher yield elasticity.
At the mechanism level, Morpho USDT Earn dynamically adjusts lending parameters through algorithmic models. All loans are fully overcollateralized, with collateral assets selected via risk models developed by the professional risk management firm Gauntlet. Only assets with sufficient liquidity and clearly defined risk profiles are accepted, allowing interest rates to adjust naturally with market conditions while keeping risk under control.
Under this model, user returns are still derived from real interest paid by borrowers, but rates fluctuate in response to market demand for USDT liquidity. Under current conditions, the annualized yield is approximately 3.55%. As demand for capital increases, yields rise; when demand eases, returns adjust downward.
From a user's perspective, there is no need to understand complex collateral ratio calculations or liquidation mechanics. Assets are continuously deployed under robust safety mechanisms and accrue interest over time, while supporting instant deposits and redemptions—making this option well-suited for users who want to maintain capital flexibility while participating in market-responsive yield opportunities.

Sky USD Earn: The Closest Form to an “On-Chain Savings Account”
Sky (formerly MakerDAO) is a core piece of infrastructure within the stablecoin ecosystem. Its yield model does not rely on allocating user funds to a single asset strategy. Instead, returns are distributed to participants through protocol-level mechanisms that allocate system-wide revenue according to predefined rules. These revenues are primarily generated from yields on U.S. Treasury investments and interest accrued through on-chain lending and stablecoin issuance.
After depositing funds, users receive an accumulating deposit certificate whose quantity remains constant, while its exchange rate against USD increases monotonically over time. Under current conditions, this investment target offers an annualized yield of approximately 4.04%, characterized by steady accumulation with relatively low volatility.
Because returns are settled and distributed at the protocol level—rather than through high-frequency operations or complex strategies—users do not need to actively manage positions or closely monitor market movements. With support for instant deposits and redemptions, the overall experience closely resembles a clearly structured, operationally stable form of on-chain yield.

Ethena USDe Earn: Strategy-Based Yield from Market Structure
Ethena USDe Earn target does not generate returns by lending funds to borrowers. Instead, it derives yield from the structural mechanics of the crypto market itself. USDe is a synthetic dollar whose underlying design is primarily built around major crypto assets such as Ethereum (ETH). The system holds these spot assets while simultaneously hedging price exposure through corresponding futures positions, aiming to minimize the impact of price volatility and focus returns on market-generated funding rates.
Under this structure, the system continuously captures funding fees from the derivatives market. In addition, the underlying Ethereum assets also generate staking rewards. In the current market environment, this investment target offers an annualized yield of approximately 4.79%, with returns driven more by market structure than by directional price movements.
Because this strategy requires orderly position adjustments and settlement cycles, redemptions typically involve a processing period of approximately 10 days. This timeline is inherent to the strategy’s operational design rather than an externally imposed restriction, making the product more suitable for users with lower liquidity requirements who are seeking strategy-based yield exposure.

Overall, these four newly added investment targets are not designed to pursue short-term, high-volatility returns or overly complex structures. Instead, they represent several yield pathways that have been repeatedly validated within today’s DeFi ecosystem: on-chain lending models grounded in real borrowing demand and emphasizing institutional-grade risk management and liquidity; protocol-level systemic revenue distribution generated through ongoing protocol operations; and strategy-based approaches that capture yield from market structure and fee dynamics.
By integrating these mature mechanisms into a unified entry point, BenPay DeFi Earn aims to enable users to select more suitable on-chain participation methods based on their own asset characteristics—without requiring deep, protocol-level research or complex operational knowledge.
Note: Annualized yields are based on historical performance and may vary with market conditions.
III. How to Choose: Matching Funds Characteristics, Not Just Yield Rates
After understanding the yield logic of each investment target, the key question is not “which yields more,” but rather: which best fits how you intend to use your funds.
Different investment targets differ fundamentally in their sources of yield, usage scenarios, and asset liquidity. Some prioritize instant access and high liquidity, others are better suited for long-term allocation with low management frequency, while certain strategies rely on specific market structures and therefore have inherently different redemption rhythms.
To help users quickly form a clear decision framework without diving into protocol-level details, the following section provides a side-by-side comparison of BenPay DeFi Earn’s existing core products and the newly introduced yield options—across dimensions including yield source, APY, investment assets, interest accrual, redemption time, and suitable use cases.

Annualized yields reflect historical ranges and may vary with market conditions.
IV. Future Evolution: One-Click Access to BenPay’s One-Stop On-Chain Financial Experience via DeFi Earn
As on-chain yield evolves from a feature used by a small subset of users into a broadly adopted tool, user attention shifts from simply asking “Is there any yield?” to “Is it stable, easy to use, and sustainable?” In response to this trend, BenPay has not attempted to cover every complex DeFi scenario. Instead, DeFi Earn serves as the core entry point, integrating on-chain yield seamlessly into everyday asset management. The introduction of these four new investment targets represents a milestone in BenPay’s ongoing efforts to optimize user experience and enhance product functionality.
From a product design perspective, the addition of these new investment targets reflects BenPay’s long-term vision for the evolution of DeFi Earn. On the one hand, introducing investment targets with different yield mechanisms reduces reliance on a single yield path. On the other hand, the selection process emphasizes redemption efficiency, clarity of yield sources, and overall predictability, not only expanding the options but also continuously enhancing the robustness and usability of DeFi Earn.
In terms of user experience, DeFi Earn continues to prioritize simplicity. Users can deposit, redeem, and track yields through a unified interface without needing to understand underlying protocol differences. Complex protocol selection and risk structures are integrated and presented in the backend, making the on-chain yield a practical asset-allocation tool for everyday use rather than a feature reserved for advanced users.
Moreover, DeFi Earn is no longer an isolated yield module—it has become a key entry point in BenPay’s full-stack product ecosystem. Centered around the core needs of earning, asset flow, and security, BenPay is integrating on-chain yield with payment, trading, and liquidity tools:
BenPay On-Chain Yield Card allows account balances to continuously earn yield during everyday spendingBenPay DEX provides efficient, low-fee decentralized tradingBenPay Lending unlocks capital liquidity via decentralized collateralized loansLeveraging BenFen’s privacy payment capabilities, BenPay further enhances security and privacy across fund flows
If DeFi Earn serves as the gateway into BenPay, the broader product ecosystem connects on-chain yield, asset circulation, and everyday usage, gradually building a more stable, user-friendly, and practical one-stop on-chain financial experience.

Summary
With the addition of Morpho USDC, Morpho USDT, Sky USD, and Ethena USDe Earn investment targets, BenPay DeFi Earn further expands users’ on-chain growth options. As DeFi enters a new phase of institutionalization and sustainable yield, BenPay remains committed to non-custodial design, one-click access, and on-chain transparency—offering a low-barrier, high-efficiency unified entry point.
Whether you are a conservative user seeking instant liquidity and principal security, or an ambitious participant willing to embrace innovative market strategies for potentially higher returns, these four new investment targets precisely address diverse user needs, allowing idle assets to grow quietly and efficiently without complex operations.
Looking ahead, BenPay DeFi Earn will continue to integrate leading protocols, refine product design, and enhance the user experience—helping users capture on-chain opportunities with ease.

Important NoticeAlthough the above-mentioned protocols have undergone multiple rounds of audits and have been in operation for a long time in practical applications, all on-chain protocols still face risks, including smart contract risks, market fluctuation risks, and uncertainties regarding mechanism adjustments.BenPay provides protocol access and operational integration services only and does not guarantee protocol performance. Users should make independent decisions based on their own circumstances and risk tolerance.
#BenPay

As cryptocurrency evolves from an investment target to a payment tool, a more fundamental question arises: Is the “crypto card” in our hand merely a spending channel, or is it a self-growing asset engine?
Imagine this scenario: You have 5,000 USDT sitting in your card, waiting for your next business trip, hotel booking, or daily expenses. During those 60 days you haven't spent it, it has done nothing. The issue isn't whether you spend it or not, but rather: those 5,000 USDT could have continued earning while “waiting to be spent.”
The answer quietly marks the division between two eras. On the one hand are traditional crypto cards, which act as one-way pipelines, converting your digital assets into fiat currency for spending. On the other hand, there are emerging on-chain yield cards that function like smart asset terminals with built-in generators, aimed not just at facilitating payments but at making every bit of your money work for you even while it awaits spending.
Beyond the obvious difference of “yield generation,” this upgrade from “channel” to “engine” reflects fundamental changes in capital efficiency, security models, and user experience.
This article will systematically compare: the core differences between on-chain yield cards and traditional crypto payment cards; how they differ in terms of yield, security models, and payment experience; whether on-chain yield cards are the same as DeFi and whether they are truly more secure; and, with reference to the real-world product practice of BenPay, help you decide which is more suitable for long-term use.
Core Differences Between On-Chain Yield Cards and Traditional Crypto Payment Cards
What is a Traditional Crypto Payment Card?
A traditional crypto payment card is essentially a "channel." Its design philosophy focuses on being an efficient conversion tool, with its core value lying in "connectivity." Under this model, the funds are merely held idle in the card and do not generate any yield. This is akin to keeping cash in a non-interest-bearing drawer—it simply sits there, waiting to be spent, without growing on its own.
More importantly, this card quietly incurs several types of efficiency losses in daily use:
Time is wasted: Funds sit completely idle while waiting to be used.Revenue opportunities are missed: The same USDT or USDC could be earning yield elsewhere, but it remains at zero in a traditional crypto card.Usage habits become entrenched: Long-term use makes users accept that "money in the card is just for spending," overlooking the potential for asset growth.
These hidden losses may not seem significant individually, but as the scale of funds and the duration of use increase, the resulting efficiency gap continues to accumulate.
Traditional Crypto Card Workflow
The workflow of a traditional crypto payment card can be summarized as "spend-and-convert, channel-first." When you use a traditional crypto card for a purchase, the entire process functions like a trigger for instant conversion:
Initiate Payment: You swipe the card or make an online payment at a merchant.Instant Settlement: Upon receiving the request, the payment network immediately sells the corresponding amount of cryptocurrency in your card (e.g., Bitcoin, Ethereum) at the current exchange rate, converting it into fiat currency (e.g., USD, RMB).Complete Transaction: The converted fiat currency is paid to the merchant, finalizing the transaction.
Throughout this process, your cryptocurrency assets are used only passively at the time of payment, with the sole purpose of being converted into fiat to complete the settlement. Before and after the payment, the assets remain statically stored in the card’s associated wallet or account, generating no yield. Their value fluctuates entirely with the volatility of the cryptocurrency market.
Three Core Limitations of Traditional Crypto Cards
This model addresses the basic need of "spending cryptocurrency," but it suffers from several inherent flaws:
1. Zero Funds Efficiency
From the moment funds are deposited until they are spent—whether it takes days, weeks, or months—the assets remain idle in the platform’s account as static reserves, generating no returns. In an inflationary environment, this leads to an implicit erosion of purchasing power.
2. Fragmented User Experience
Payment (spending) and asset growth (saving/investing) are completely separate actions. If users wish to grow their assets, they must manually transfer funds to exchanges, wallets, or various DeFi protocols—a cumbersome process that disrupts the convenience of payment.
3. Opaque Economic Costs
Beyond potential monthly fees or cross-border transaction charges, the highest cost lies hidden in the "exchange rate." The platform’s bid-ask spread and handling fees may be substantially higher than open-market rates, with these costs borne passively by the user.
What is an On-Chain Yield Card?
Emerging on-chain yield cards represent a philosophy of "efficiency." They are no longer content with being passive pass-through channels but strive to become "intelligent efficiency engines" for your personal assets. Their core innovation lies in leveraging the programmability of blockchain and the flexible composability of decentralized finance (DeFi) to redefine what a payment account can be. Now, your payment account simultaneously functions as an automated, yield-generating "asset growth tool," ensuring your money continues to work and generate returns even while awaiting payment use.
How Does an On-Chain Yield Card Generate Returns?
The core principle of how an on-chain yield card generates returns can be summarized as follows: after the user actively enables the "earn" feature, the system allocates the card account balance to carefully selected and optimized on-chain DeFi protocols to generate returns, achieving the goal of "earning while holding and spending while earning." The yield generation of an on-chain yield card is fundamentally based on the user's active decision to enable the earn feature.
User Authorization to Enable Earnings
The user transfers funds into the card account balance and manually activates the earn feature.
Smart Contract Execution for Yield Generation
After user authorization, the system uses smart contracts to allocate the card account balance to on-chain yield protocols in accordance with predefined strategies. The entire execution process is automated and auditable.
Parallel Processing of Payments and Earnings
When a payment is made, only the required amount is redeemed for the transaction. The remaining balance in the card account continues to participate in yield generation uninterrupted.
Are On-Chain Yield Cards Equivalent to DeFi?
No, on-chain yield cards are not equivalent to DeFi, but they are fintech products built with DeFi as their core "engine." The relationship between the two can be likened to that of "a car and its engine":
DeFi functions like a high-performance engine and transmission system, providing a series of composable protocols (such as lending, staking) that enable digital assets to generate returns automatically.An on-chain yield card, on the other hand, is like a fully integrated smart car. It not only incorporates the DeFi engine but also integrates payment channels, compliance systems, user interfaces, and more, aiming to deliver a secure, convenient everyday spending experience.
In short, DeFi is the underlying technological capability, while on-chain yield cards are consumer-grade products that package it for everyday use.
On-Chain Yield Cards vs Traditional Crypto Cards: Key Dimensions Comparison
To more clearly illustrate the differences between the two, we can directly compare them across three core dimensions:

Traditional crypto cards solve the question of “how to spend your crypto,” while on-chain interest-bearing cards solve the question of “whether your money is sitting idle before you even spend it.”
Is It Really More Complicated to Use On-Chain Yield Cards?
When first encountering on-chain interest-bearing cards, most users are most concerned not about returns, but three very practical questions.
First, do I have to manage it daily?
No. Users only need to manually activate the “Earn” feature once after funds enter the card's account balance. After that, both earning and spending are handled automatically in the background. Day-to-day usage is no different from a regular crypto card.
Second, if I decide I don't want to earn anymore, can I stop at any time?
Yes. The Earn feature is not a lock-up. Users can turn it off anytime, and funds will exit the earning state according to the rules, returning as available balance. The entire process is under the user's active control.
Third, will it not feel like a “normal card” to use?
No. In real spending scenarios—swiping, online payments, cross-border use—the experience is largely the same as with a traditional crypto card. When a payment is made, the system only redeems the required amount; the remaining balance continues as before. You’ll hardly notice any complex mechanisms running behind the scenes.
For users, the change isn't in “how to use it”—it's that the same balance, before being spent, finally starts generating value.
Taking BenPay as an Example: The Real Product Practice of On-Chain Yield Cards
BenPay's core product — the On-Chain Yield Card serves as a key application of this system. Its design reflects a thoughtful, practical integration across three key dimensions: yield, security, and user experience, with a particular emphasis on maximizing user autonomy and asset transparency.

Product Highlights:
In terms of yield, BenPay does not simply connect users to a single high-risk protocol.
Instead, it employs a diversified, robust asset allocation strategy to provide a sustainable source of returns. More importantly, yield generation begins only with explicit user authorization: funds must be transferred to a dedicated "Card Account Balance" pool, and users must manually activate the "Earn" feature.
This design is far from redundant; it fundamentally ensures users' absolute control over their funds. It clearly distinguishes between liquid balances for payments and principal allocated for yield generation, preventing any misunderstanding that "funds are being automatically used."
Regarding security, BenPay strikes a balance between convenience and safety through "Social Login + Zero-Knowledge Proof" technology.
Furthermore, asset settlement and record-keeping are based on a high-performance blockchain optimized for finance, ensuring transaction finality and auditability. This architecture technically safeguards the security and transparency of assets within the "Card Account Balance," making every bit of generated yield fully traceable.
For user experience, BenPay's design aims to eliminate complexity and deliver seamless, frictionless interaction.
This is first achieved through a clear fund structure: the app interface distinctly separates the "Card Account Balance" (earning yield) from the "Total Card Balance" (available for spending), giving users an instant overview of their asset status.
Secondly, by integrating with global payment networks, interest-bearing assets can be used for worldwide consumption at any time. When a payment is initiated, the system automatically redeems the required amount from yield-earning assets in accordance with predefined rules, completing the process within seconds. The payment experience is thus identical to that of a traditional card. This design means users need only make one proactive choice—activating the "Earn" feature—to subsequently enjoy the automated convenience of "spending while earning," without any complicated steps for each transaction.
In summary, the practical approach of the BenPay Interest-Bearing Card is to deliver native on-chain financial yield through meticulous product design while strictly adhering to the principle of user sovereignty. It returns control and transparency to users, thereby building a powerful and trustworthy financial tool.
Who Should Choose an On-Chain Yield Card?
Choosing which crypto card to use may seem like a product preference on the surface, but it's really about how you view "that money in the card."
An on-chain yield card is better suited for you if:
Long-term stablecoin holders: If you hold USDT or USDC as cash reserves or emergency funds, an on-chain interest-bearing card allows your idle capital to grow consistently, rather than remaining at zero long-term.Frequent cross-border spenders: Every payment may involve exchange rate spreads and fees. An on-chain interest-bearing card not only reduces hidden costs but also ensures your funds generate returns before they’re spent.Those receiving stablecoin salaries or income: If your salary or income arrives in stablecoins, an on-chain interest-bearing card helps create a seamless cycle from receipt to spending, putting every dollar to work for you.Long-term thinkers / efficiency-driven users: You aren't satisfied with "money just sitting there." You want your assets to deliver value every moment in the digital age, merging payment and growth into one.
Traditional crypto cards are still suitable for users who:
Use crypto assets for payments only occasionally, with funds remaining in the card for short periodsPrefer to avoid potential volatility risks associated with on-chain protocolsValue simple tap-and-pay convenience over asset growth
Ultimately, the choice of which card to use comes down to whether you want idle funds to continue creating value for you—not just waiting to be spent.
Conclusion: This Isn't Just a Feature Upgrade, It's a Choice About Fund
The difference between an on-chain interest-bearing card and a traditional crypto payment card isn’t just about “whether it earns interest.” They represent two fundamentally different ways of using capital: one accepts that funds lie idle while waiting to be spent; the other tries to keep money in motion no matter what state it’s in.
With a clear understanding of the risks, the real question is no longer: “Should I use an on-chain yield card?” It’s rather: Are you willing to let a portion of your fund that could be working for you continue to do nothing?

Risk Disclosure
The returns generated by on-chain interest-bearing cards originate from on-chain DeFi protocols and do not guarantee future yields; actual returns may fluctuate. Funds engage in smart contract operations, which entail potential technical risks. In a non-custodial model, asset security depends on the user's own safeguards. In extreme market conditions, fund redemptions may be restricted or delayed. Please fully understand the product mechanism and evaluate your personal risk tolerance before use.
#加密市场观察

According to Chainalysis, in 2025, over $3.4 billion worth of cryptocurrency was stolen, and personal wallet thefts surged to 158,000 cases, mainly due to private key leaks and centralized platform issues. As crypto wallets evolve from being merely “storage tools” into integrated platforms for payments, asset allocation, and yield, on-chain yield cards are attracting increasing attention.
For new users, however, the most pressing question remains: Is an on-chain yield card safe? Simply put, there is no absolute answer to “completely safe” or “completely unsafe.” Their safety primarily depends on three factors: whether funds are self-custodied, whether yields are verifiable on-chain, and whether the funds can continue earning while remaining fully available for payments.
Common Concerns About On-Chain Yield Cards
Asset Custody and Control
Many users worry that once funds are deposited into a yield card, control shifts entirely to the platform. Safer on-chain yield card designs emphasize on-chain transparency and verification.
Yield Volatility and Protocol Risk
On-chain yield is not traditional interest. It fluctuates based on liquidity, protocol mechanism, and market conditions. Understanding this distinction is essential when evaluating whether an on-chain yield card is safe.
Payment Reliability
As a payment tool, users also care about the card’s reliability for everyday spending. A secure on-chain yield card allows funds to keep earning while remaining fully available for payments, ensuring daily spending is never interrupted.
Are On-Chain Yield Cards Safer Than Centralized Finance Apps?
When users search for "Is the on-chain yield card safe?", they usually do not seek a "zero-risk" answer; rather, they want to know whether the risk of this new type of card is more understandable and controllable than the traditional financial tools they are familiar with.
A natural reference object is the centralized financial app (CeFi app) that users use on a daily basis. Both offer payment and yield functions, but there is an essential difference in the underlying logic of "security" :
In centralized finance apps, "security" mainly relies on the platform's credit: users must trust the platform's risk management capabilities.The on-chain yield card redefines security through verifiability, transparency, and systematic design: users no longer have to rely entirely on a single platform but can directly verify the status of their assets through blockchain.
This does not mean that on-chain yield cards are risk-free; instead, it makes risks more explicit and understandable, and enables users to manage them more proactively.
The following table compares the security logic differences between on-chain yield cards and centralized financial apps from key dimensions such as user visibility, custody mode, and risk exposure methods:

How BenPay On-Chain Yield Card Makes Risk More Visible, Understandable, and Manageable
Self-Custody and On-Chain Transparency
One of the core considerations when evaluating the safety of an on-chain yield card is how funds are held and how much control users have over their assets. The BenPay On-Chain Yield Card adopts a self-custody model, ensuring that assets remain fully under the user’s control while emphasizing on-chain visibility:
Self-Custody: Assets are always under the user’s controlOn-Chain Verifiable: All operations are recorded on-chain, with full transaction transparency
While on-chain transparency cannot eliminate market or protocol risks, it transforms hidden risks into visible ones, allowing users to clearly understand the flow of funds. Users still need to assess the potential fluctuations caused by on-chain protocols and market conditions themselves.
Source of Yield and Security
The BenPay On-Chain Yield Card utilizes a unique “three-layer account” architecture to achieve intelligent coordination of fund states:
Self-Custody Wallet (on the BenFen Chain): Users fully control their private keys, maintaining 100% ownership of their assets.Card Account Balance: Once on-chain yield is activated, funds automatically participate in market-verified blue-chip DeFi protocols. Yields are calculated and settled daily, fully verifiable on-chain.Card Balance: Used for everyday payments, always available to ensure stable spending and liquidity.
Through the “three-layer account” structure, the same funds no longer need to switch repeatedly between “safety, yield, and payment.” Assets can simultaneously accrue yield under self-custody while remaining available for use. All operations are verifiable on-chain and fully transparent, making yield-related risks visible, understandable, and manageable, while ensuring uninterrupted and reliable payment functionality.
BenPay On-Chain Yield Card FAQs
Are there any additional fees for enabling on-chain yield on the card account?
No. Users can independently activate the automatic on-chain yield function for their card accounts. Recharges and consumption will not be affected, and no additional fees will be incurred for on-chain yield.
Will the card account balance be locked, or can I spend it at any time?
No. The card account balance participates in on-chain yield, while the card balance can be used for spending at any time. When making a payment, the required amount is transferred from the card account balance to the card balance; any unused card account balance continues to earn yield without affecting everyday payments.
Are there risks with on-chain yield cards?
Any on-chain product carries risks. BenPay's on-chain yield cards offer multiple security guarantees. They are self-custodial on-chain, and all operations are verifiable on-chain, and the entire transaction process is transparent, ensuring the safety and reliability of users' assets. It should be noted that on-chain yield may still be affected by the performance of the protocol and the market environment. Users should make judgments based on their own risk tolerance.
How Are On-Chain Yields Calculated? Are They Volatile?
Yield is generated from backend DeFi strategies. The system calculates and distributes earnings daily. Users can view both "Yesterday's Earnings" and "Accumulated Earnings" within their card account balance. Earnings may fluctuate due to factors such as strategy performance and available balance. This is normal and does not affect fund availability or card payment functionality.
Are On-Chain Yield Cards Suitable for DeFi Beginners?
BenPay On-Chain Yield Card is designed to be beginner-friendly. Users do not need to manually operate complex DeFi protocols. The yield feature runs within the card account, while payment and spending functions remain fully available. This allows newcomers to safely experience on-chain yield even without any prior DeFi knowledge.
Curious to see how on-chain yield works in practice? Explore the features of the BenPay On-Chain Yield Card and let your idle funds grow while you spend.

Conclusion
In summary, there is no “absolutely safe” or “absolutely unsafe” answer for on-chain yield cards—their security fundamentally depends on the specific design. To evaluate the security of an on-chain yield card, you can focus on the following three key aspects:
Whether users retain full control of their funds: This ensures assets are always under the user's direct control, preventing the platform from having direct access.Whether yields and asset flows are verifiable on-chain: This makes risks transparent, allowing users to monitor their funds' status in real-time.Whether the yield-earning mechanism and payment are independent: Ensure that the funds increase in value while daily payments can be made at any time.
When these conditions are clearly and transparently met, risks become more visible, understandable, and manageable, empowering users to make a rational decision on whether to use an on-chain yield card.
#加密市场观察

Introduction
For most digital asset holders, funds usually end up in one of three places — and each comes with clear flaws:
Kept on an exchange account: Convenient to use, but assets are custodial. Security and transparency remain ongoing concerns, and funds typically generate no yield.Stored idle in a wallet: Assets are secure, but simply “stored,” without participating in on-chain yield opportunities.Deposited into DeFi protocols: Yield is possible, but the process is complex, and risks are difficult to predict. Once funds are deployed, they are often hard to access for everyday spending.
As a result, users often need to make trade-offs among security, yield, and liquidity.
The BenPay On-Chain Yield Card was created to resolve this long-standing dilemma: Without sacrificing self-custody security, funds remain instantly spendable while continuously earning on-chain yield.
I. The Three Core Dilemmas Facing Digital Asset Holders
1. The Limits of "Idle Assets"
When crypto assets are held as stablecoins, their value tends to be relatively stable and does not involve price depreciation. However, if funds remain idle in exchange accounts or cold wallets for a long time, they cannot capture the native yields generated by on-chain protocols. Assets are merely “preserved,” not truly “used.”
2. The Barrier of "High Threshold Fear"
To grow your asset through DeFi, users must first understand wallet creation, private key management, network switching, protocol selection, impermanent loss, gas optimization, and more. A single mistake can lead to irreversible asset loss. This complexity — and fear — keeps many users on the sidelines.
3. The Inconvenience of "Liquidity Fragmentation"
Even users who bravely enter DeFi face a practical challenge: funds are typically locked in liquidity pools or lending protocols and cannot be used for everyday spending. When payment is needed, users must redeem assets first, wait for confirmations, and pay high gas fees — a process that is both slow and costly.
II. BenPay On-Chain Yield Card: Grow Your Assets While Keeping Them Instantly Spendable
To address the three most common practical problems faced by digital asset holders — the long-term idle funds, excessively high thresholds for DeFi operations, and the inability to combine yield with liquidity — the BenPay On-Chain Yield Card offers a solution that aligns with everyday payment habits.
Automatic Asset Growth, Clearly Visible Earnings
On-chain yield is generated through BenPay’s DeFi Earn system. Once users enable the “Earn” switch, their card account balance is automatically connected to selected on-chain DeFi protocols. It is important to clarify: on-chain yield is not generated by the card itself. Rather, the card account balance participates in on-chain protocols through the DeFi Earn system, resulting in yield generation, with the entire process remaining seamless to the user.
Without affecting daily payments, funds continue participating in on-chain activity. Yield is settled daily and credited the same day, starting at 3% APY (based on real-time on-chain protocol returns). Earned yield can continue to participate in on-chain yield strategies, balancing liquidity with long-term returns.

Keep All DeFi Complexity Entirely in the Background
The On-Chain Yield Card does not require users to understand protocol mechanics, compare yields, calculate gas costs, or manually reinvest returns. With a single tap to enable “Earn,” all remaining processes are handled automatically by the system. The overall experience feels much closer to that of a traditional payment product, while still preserving the core advantages of on-chain yield — transforming DeFi yield capacity from a "professional tool" to a "basic function".

Instant Usability While Earning On-Chain
Unlike traditional DeFi, funds in the On-Chain Yield Card are not locked into protocols. During everyday spending, the card account balance can be transferred to the card balance at any time and used directly for payments, enabling a seamless transition between earning and spending.
Security Built on On-Chain Self-Custody
The On-Chain Yield Card adheres strictly to self-custody principles. Users retain full control of their private keys; the Platform never touches or holds user assets, and all operations are fully verifiable on-chain. Meanwhile, the card integrates only blue-chip DeFi protocols rigorously validated by the market over time, balancing yield efficiency with minimal systemic risk.
Incentives That Enhance Utility and Community Value
To encourage more users to experience the convenience and growth potential of the On-Chain Yield Card, BenPay launched a launch incentive and referral program alongside its release. This not only allows users to earn yield during everyday use but also provides additional rewards through sharing, creating a system of value sharing:
Free card issuance: Free for the first 200 usersReferral rewards: Earn $2 USD for each successful referral who opens a card and deposits fundsDeposit rewards: During the campaign, the top 10 users by cumulative deposits receive an additional 3 USDT airdrop
The BenPay On-Chain Yield Card breaks the binary choice between “idle” and “locked” assets, establishing a new balance between self-custody, on-chain yield, and instant usability — keeping DeFi complexity in the background while delivering yield and convenience to users. At the same time, users can not only achieve asset growth by taking what they need at any time but also earn additional income through social sharing of early incentives.

III. Why the BenPay On-Chain Yield Card Is a Breakthrough Product
The BenPay On-Chain Yield Card is not merely a simple combination of existing solutions. Through innovations in its underlying architecture, it achieves a seamless integration of traditional financial experiences with the on-chain world. Its breakthrough lies in three dimensions: product mechanics, technical implementation, and user experience, effectively solving the long-standing dilemma of choosing between payment and asset growth.
1. A Unique Three-Layer Account Architecture for Intelligent Fund Coordination
Self-custodial wallet on BenFen Chain: Users fully control their private keys and 100% asset ownership.Card account balance: Once on-chain yield is enabled, it automatically participates in selected blue-chip protocols, earning yield on-chain daily.Card balance: Instantly available for global spending at any time.
This three-layer structure maximizes asset efficiency. The same funds no longer need to rotate between “security,” “growth,” and “payments.” Instead, under self-custody, they can simultaneously earn on-chain yield and be used for instant consumption, allowing assets to retain liquidity while continuously generating value.
2. Extreme Automation, Minimal User Burden
One-Click Yield: Enabling the switch automatically handles protocol selection, fund allocation, yield reinvestment, and the entire process end-to-end.Zero-Gas Payments: For everyday spending, funds are transferred from the yield account without the user noticing the underlying redemption or confirmation process, with no additional fees.Transparent Fees: No setup fees, no management fees, with daily yield clearly visible and fully verifiable on-chain.
The core principle of this design is not to make DeFi more complex, but to remove complexity entirely from the user’s perspective. Users do not need to understand protocol differences, gas mechanics, or reinvestment logic — the system automatically executes all processes on-chain in a fully verifiable manner.
3. On-Chain Transparency and Protocol Selection
Fully On-Chain Verifiable: All operations are recorded on-chain, making the process transparent and auditable at any time.Selected Blue-Chip Protocols: Only top-tier DeFi protocols with long-term market validation are integrated, ensuring controllable risk.
This approach balances fund security and yield generation. All operations are verifiable on-chain, the process is fully transparent, and only well-established DeFi protocols are used, allowing assets to grow safely and reliably.
IV. Use Cases: Rebuilding Digital Asset Lifestyles
Higher Capital Efficiency
Funds held as digital assets can be deposited into the BenPay On-Chain Yield Card. While covering daily spending needs, they simultaneously participate in on-chain yield generation, allowing assets to maintain higher liquidity and capital efficiency during use.
A Cash Flow Tool for Long-Term Holders
Long-term crypto holders who require partial liquidity can allocate a portion of their assets to the BenPay On-Chain Yield Card. This enables them to balance daily spending capability with asset growth, without disrupting their existing holdings.
An Easy On-Ramp for DeFi Beginners
Users curious about DeFi but hesitant to participate can experience on-chain yield in the simplest possible way, gradually building understanding and confidence.

V. Industry Impact: A Step Toward Mainstream Adoption
The BenPay On-Chain Yield Card represents a shift in Web3 product philosophy — moving beyond serving only advanced users toward a broader audience. This is achieved through three principles:
Complexity Stays in the Background
Users do not need to understand smart contracts, gas fee calculation, or reinvestment logic. They simply enable the on-chain yield switch, while all other complex processes are handled automatically by the system. The experience feels much closer to a traditional payment product.Simplicity Without Compromising Core Values
While the operation becomes simpler, the BenPay card still adheres to the self-custody principle, on-chain transparency, and the open nature of Web3, allowing users to maintain full control over their assets.Direct Integration with Real Life
Through a virtual card, there is no need to convert crypto into fiat in advance. Users can spend directly in the real world while simultaneously growing their on-chain assets.
This approach embodies a broader industry insight: true mass adoption does not require ordinary users to learn blockchain; it requires blockchain to integrate naturally into the ways users already interact with money.
Conclusion: Put Your Assets to Work
In traditional finance, funds typically exist in one of two states: either being spent or sitting idle in an account. The BenPay On-Chain Yield Card combines both seamlessly: while funds await spending, they continue to participate in on-chain activities. This allows every asset to maximize its value safely and autonomously, improving capital efficiency. Whether for daily payments, asset growth, or long-term cash flow management, users can freely manage their funds within a unified account system — truly enabling “earn while you spend.”

Disclaimer
The content of this article is for informational purposes only and describes the features and usage of the BenPay On-Chain Yield Card. It does not constitute any form of investment advice or guarantee of earnings. Digital assets are subject to price volatility and inherent risks. Users should make their own judgments and assume responsibility for any risks when participating in on-chain yield or related financial activities.
#Privacy #blockchain

For Web3 payments to truly enter the mainstream, it is essential not only to address issues of "efficiency and cost" but also to restore users' control over the "privacy boundaries of their digital identities." In other words, privacy is a prerequisite for payments to achieve mass adoption, not merely an optional technical enhancement.
BenFen Chain’s private payment system is designed precisely to address this core challenge. Built on the BenFen Chain ecosystem, BenPay (www.benpay.com) enables users to leverage the BenPay Card for daily small-value payments—such as dining, subscriptions, transportation, and online purchases—making stablecoin payments more accessible and seamlessly integrated into everyday life. The system uses advanced MPC technology to automatically conceal transaction details, including amounts, times, recipient information, and address correlations across transactions. Additionally, BenFen Chain introduces a "selective disclosure mechanism" that allows users to grant limited transaction visibility to merchants or regulators when necessary, enabling a "verifiable yet untraceable" payment experience.

As crypto payments move closer to everyday use, crypto cards have become a practical tool for cross-border spending, ad payments, and premium subscriptions. Yet one long-standing problem remains unresolved: Money sitting in a card account does nothing until it is spent. This inefficiency is exactly what an on-chain yield card is designed to solve.
In this guide, we’ll explain what an on-chain yield card is, how Earn While You Spend works in practice, the security and self-custody model behind it, real-world implementation examples (BenPay), and who this product is best suited for.
What Is an On-Chain Yield Card?
An on-chain yield card is a crypto payment card that enables the card account balance to participate in on-chain earnings after the "Earn" button is activated by the user. In simple terms: An on-chain yield card = a crypto payment card combined with an on-chain yield mechanism based on the balance of the card account
Unlike traditional crypto cards, where balances sit idle until spent, an on-chain yield card ensures that unused funds continue to work and generate on-chain yield in the background.
Key Differences from Traditional Crypto Cards

Users do not need to manually participate in DeFi or understand complex DeFi protocols. After activating the "Earn" button, as long as the funds remain in the card account, they can continuously generate on-chain returns.
How “Earn While You Spend” Works
Card Account Balance-Based On-Chain Yield Model
In an on-chain yield card, Earn While You Spend refers to a card account balance-based on-chain yield mechanism, not transaction-based rewards. Instead of earning from each payment, users earn an on-chain yield from the unspent portion of their card account balance.
Here’s how it works in practice:
Card Account Balances Remain On-Chain
When users top up stablecoins into an on-chain yield card, those funds are held in an on-chain wallet linked to the card. Before being consumed, the balance of the card account remains on the chain, enabling it to be compatible with smart contracts and on-chain yield protocols. The card itself is merely a payment interface, not an asset custodian.
Idle Funds Are Automatically Allocated to Yield
Any portion of the card account balance that is not immediately spent is considered idle funds. After users activate the "Earn" function, these idle funds are allocated into high-liquid, relatively low-risk on-chain yield strategies.
After starting to "earn", the entire process is automated for users:
No manual depositsNo complex DeFi knowledge required
From the user's perspective, the card account balance will continue to accrue on-chain yield during the period the "earn" is active.
Spending Does Not Interrupt Earning
A key feature of the Earn While You Spend model is that earning and spending happen simultaneously. When a user makes a payment:
The amount spent will be deducted from the card balanceThe remaining balance in the card account will continue to generate incomeThe funds in the card account can always be used immediately
For example, if a user tops up 1,000 USDT to the card account and spends 300 USDT on the card, the remaining 700 USDT in the card account will continuously generate on-chain income until it is spent.
Not Cashback, Not Rewards
It’s important to clarify that this model is fundamentally different from cashback or reward cards.
Yield is not generated by spendingThere are no per-transaction incentivesEarnings come from time and the balance size of the card account, not from usage frequency
Yield accrues as long as funds remain in the card account. The longer funds remain in the card account, the more yield they generate—without affecting the user’s ability to spend.
Therefore, the true meaning of "earn while you spend" is that users do not have to choose between "using funds" and "letting the funds make money." They can consume freely while allowing the remaining balance in their card accounts to continuously participate in on-chain yield in the background.
Security and Self-Custody
Security is the foundation of any on-chain financial product.
Self-Custodial Architecture
Most mature on-chain yield cards adopt a self-custodial architecture, meaning:
Users retain full control of their assetsThe platform does not freely move user fundsAsset states can be verified on-chain
In practice: The card is a spending interface, not a custodian of assets.
Yield Strategies Designed for Liquidity
Unlike aggressive DeFi investments, yield strategies behind on-chain yield cards prioritize:
High liquidityAbility to withdraw funds at any timeCapital preservation over maximum APY
The objective is not yield maximization, but: Stable, uninterrupted earnings while maintaining spendability
Clear Risk Boundaries
An on-chain yield card is:
Not risk-freeBut it has a significantly lower risk than active DeFi investingComparable to an “on-chain money market” experience
This balance makes it suitable for users who want yield without complexity.
Real-World Implementation Example: BenPay On-Chain Yield Card
To illustrate how an on-chain yield card works in practice, consider the BenPay On-Chain Yield Card (mentioned purely as an example).
Users top up stablecoins (USDT/USDC) to card accounts for daily spendingUnused card account balances will automatically participate in on-chain yield after the user actively activates the earn functionDaily earnings are visible, such as: “Yesterday’s yield: +2 USDT”No additional action is required, and spending remains seamless

The key innovation is not high yield, but changing the default state of card account balances from "idle funds" to "on-chain assets that can generate value". This transformation has also fundamentally changed users' perception of card account balances: the money in the card account is no longer just temporary consumption funds, but a continuously operating asset.
Who is an on-chain yield card Best Suited For?
Cross-Border Spenders and Ad Buyers
Typical traits
Frequently top up 100–2,000 stablecoinsDo not spend the full balance immediatelyHighly sensitive to fees and card costs
Why it fits
Idle balances no longer feel “wasted.”Even non-yield-focused users perceive higher valueThe card feels economically smarter
Web3 and Crypto-Native Users
Typical traits
Hold stablecoins long-termUnderstand DeFi but prefer automationCare about capital efficiency
Why it fits
Passive yield without manual strategy managementImproved utilization of funds already sitting in the card accountNo operational overhead
Non-Crypto Users
Typical traits
No DeFi knowledgeUnderstand “on-chain yield of card account balance” conceptsWant safety, simplicity, and automation
Why it fits
Extremely low learning curveVisualized daily earnings build trustActs as a gateway into on-chain finance
Typical User Scenarios
Scenario A: Idle Balance Awareness
A user tops up 1,000 USDT for spending. Only 300 USDT is used . The remaining 700 USDT earns yield automatically.
The user realizes the card account balance is no longer “dead money.”
Scenario B: Card Comparison Decision
When comparing multiple crypto cards:
One card offers cashbackAnother offers a yield on the card account balance
The realization that “My money won’t sit idle here” is often used to justify higher upfront costs.
Scenario C: DeFi Without the Hassle
A Web3 user wants yield, but:
Doesn’t want to manage complex DeFi protocolsFears of operational mistakes
The on-chain yield card offers: Curated DeFi strategies + instant liquidity
Why On-Chain Yield Cards Matter
Strategically, the on-chain yield card serves as the lowest-friction entry point into DeFi
By introducing users to:
Passive yieldVisible daily returnsOn-chain trust
It naturally prepares them for:
Higher-yield strategiesMore advanced DeFi productsLarger capital commitments
FAQ: On-Chain Yield Cards
Where does the yield come from?
From on-chain yield protocols, not platform subsidies.
Does earning yield affect spending speed?
No. Spending and earning on-chain yield can happen simultaneously.
Do I need Complex DeFi knowledge?
No. Users only need to enable the earn function independently. The subsequent on-chain interest generation process will be automatically executed by the system, and users do not need to perform any DeFi operations.
Is it risk-free?
No on-chain product is risk-free, but risk is significantly lower than active DeFi.
Is it meant for long-term investing?
It’s best for idle balances used for spending and storage—not high-risk investing.
Final Thoughts
The On-Chain Yield Card is not merely for obtaining earnings. Its true value lies in solving the problems of idle funds and inefficient use, allowing your assets to continuously increase in value through consumption and payment. By turning idle balances into productive assets, it transforms a crypto payment card into a value-generating financial interface, bridging everyday spending and on-chain finance in a way that feels natural, simple, and sustainable.

Risk Notice
On-chain yield cards are not risk-free. Funds are exposed to on-chain protocols, smart contract risks, and market fluctuations. Users should understand that earnings are not guaranteed. Always review platform terms and consider potential losses before using them.