Funding supports infrastructure growth for wallets, fintechs, and developers.
YO Labs has raised $10 million in a Series A round to grow its cross-chain yield platform, YO Protocol. Foundation Capital led the funding, joined by Coinbase Ventures, Scribble Ventures, and Launchpad Capital.
The new capital brings YO Labs’ total funding to $24 million, including an earlier seed round led by Paradigm. The company will use the funds to expand to more blockchains and enhance its protocol’s core infrastructure.
YO Protocol automates crypto yield generation by reallocating capital across DeFi platforms based on real-time risk-adjusted returns. It currently offers access to USD, EUR, BTC, and gold-based yield products for users seeking diversified and optimized returns.
Unlike single-chain yield aggregators, YO Protocol operates across chains with independent vaults that manage native assets directly. This cross-chain approach reduces reliance on bridges, lowering the risk of bridge-related security vulnerabilities.
YO Protocol’s vaults — such as yoUSD, yoETH, and yoGOLD — dynamically move capital toward safer, higher-yield opportunities across chains. These decisions rely on “Risk Adjusted Yield,” calculated using thousands of risk vectors from protocol audits to historical data.
The protocol leverages Exponential.fi, a risk engine built by the same team, to assign risk scores to each DeFi pool. It avoids chasing high returns blindly and instead focuses on balancing yield potential with security and default probability.
YO Labs also built a ‘DeFi Graph’ that monitors multi-level protocol dependencies to detect and act on indirect risk exposure. This system enables automatic capital withdrawals during major market events or protocol failures, increasing user protection.
The company aims to serve fintechs, wallets, and developers who need secure, embedded yield generation tools. With fresh backing from major VCs, YO Labs is positioning its protocol as foundational DeFi infrastructure for the next wave of apps.
