Published September 2025
Decentralised finance (DeFi) has opened the door to novel yield‑generating strategies. By providing liquidity, staking tokens or participating in lending protocols, investors can earn income on their digital assets. These yields can be attractive, but they come with unique risks such as smart‑contract vulnerabilities and market volatility.
At Preston Digital Alpha, we view yield generation as one component of a diversified strategy. We allocate a portion of our portfolio to liquidity pools and staking opportunities that we believe offer competitive risk‑adjusted returns. We carefully assess the security and governance of each protocol, continuously monitoring for changes that might impact performance.
Investors considering DeFi strategies should take the time to understand how each protocol works, the rewards offered and the associated risks. While yield farming can enhance returns, it should be approached with caution and integrated into a broader investment framework.
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