🚀Crypto market intelligence provider IntoTheBlock has released a report on the best risk-adjusted methods to earn yield in the DeFi world. 🧐

The firm suggests sticking to "straightforward strategies," despite the "nearly infinite number of composable strategies." The first strategy highlighted is AMM Liquidity Provisioning. 💰 DeFi users can deposit their assets into AMM pools for various trading pairs, earning yield from trading fees every time a user swaps between two assets using that pool.

However, as new capital is added to the pool, the expected APY gets diluted. So, the initial size of the pool relative to the capital deployment needs to be considered. 🤔

Another high-yield source is "recursive lending," where users can supply and borrow the same asset, profiting from the difference between borrowing costs and protocol incentives. But, yields drop as more capital is added to the strategy. 🔄

The report also mentions "Supervised lending," which combines both prior techniques. Users use an "unproductive asset" (ex. BTC) as borrowing collateral, then use their borrowed funds to buy a more "productive asset" that earns yield in another area, like an AMM pool. 🔄

Lastly, "leveraged staking" is highlighted as a strategy for producing "medium" returns on assets like ETH or SOL, which can be natively staked for yield to secure their respective blockchains. 🚀

The report concludes that the combination of these strategies can create a complex chain of risk considerations when it comes to rebalancing and taking profits. 📊