# Introducing ForgeYields

By [ForgeYields](https://paragraph.com/@forgeyields) · 2025-09-27

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### DeFi yield is fast. Sometimes too fast.

The current meta is **hyper-aggressive incentive programs**.Protocols like Plasma prove how powerful this can be: TVL grows overnight, yields are eye-catching, capital flows at scale.

But incentives don’t last. When programs end, liquidity shifts to the next chain or the next season. Users are left bridging, rebalancing, and chasing the next farm.

This speed is both DeFi’s strength and its weakness. Yield is everywhere, but fragmented and volatile.

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### Enter ForgeYields

ForgeYields abstracts this complexity into a simple interface. Deposit ETH, USDC, or WBTC once to mint **fyTokens** (fyETH, fyUSDC, fyBTC). These tokens **accrue value automatically** as your capital is routed into curated cross-chain yield strategies.

No bridging. No rebalancing. No spreadsheets. Just one token that grows.

### How it works

*   **TokenGateway ingress** → From any supported chain, users deposit via a standard ERC-4626 vault. UX stays one click.
    
*   **Liquidity batching & netting** → Deposits are aggregated locally and globally, then only the netted amount is bridged to Ethereum. This reduces redundant operations, cuts gas costs, and improves capital efficiency—so more of your yield stays with you.
    
*   **Strategy execution** → Once liquidity settles on Ethereum, Forge allocates it where returns are best: directly into Ethereum strategies like Curve+Convex stable pools or lending markets, or bridged out to other chains for ecosystem-specific opportunities such as Plasma, when yields justify the cost and the risk.
    
*   **fyTokens as wrappers** → Your fyToken accrues yield over time, regardless of where the liquidity sits. They remain composable, transferable, and redeemable at any time with a 1 day average delay.
    

### The abstraction layer

ForgeYields isn’t just another vault. It’s a **yield abstraction layer**:

*   **Chain abstraction** → One-click mint fyTokens from any chain (ethereum or ZK L2). The protocol handles bridging via cannonical bridges and gas cost is handled by protocol at low cost thanks to batching and netting.
    
*   **DeFi abstraction** → AUM is sliced into many micro-managers across chains. They adapt continuously allocating to sustainable strategies or moving quickly into short incentive programs. Users only see their fyToken balance increase.
    

From the user’s perspective: deposit, hold fyTokens, redeem when needed.From the protocol’s perspective: a dynamic cross-chain allocator reacting to the market in real time.

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### Why it matters

*   **Simple UX** → One vault, one click, one token.
    
*   **Capital efficiency** → Batching and netting minimize ops and maximize yield.
    
*   **Adaptive allocation** → Fast enough to capture incentives, grounded in durable yield.
    
*   **Transparency** → All reports, allocations, and risks are onchain and auditable.
    

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### The vision

ForgeYields is building the **yield layer**: infrastructure that abstracts away the noise and speed of DeFi, and exposes a simple, composable primitive fyTokens.

fyTokens can embed directly into wallets, protocols, and apps as the default way to make assets productive. A unified liquidity layer across Ethereum and zk ecosystems. A foundation for the next billion onchain users.

  
  
What are you waiting for Forgers?

→ Mint [fyTokens](https://app.forgeyields.com/fyETH)

→ Follow [ForgeYields on X](https://x.com/ForgeYields)

→ Join the [Forgers community](https://discord.gg/VwYKUErxXN)

→ Check out our [docs](https://forge-labs.gitbook.io/forge-docs)

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*Originally published on [ForgeYields](https://paragraph.com/@forgeyields/introducing-forgeyields)*