> For the complete documentation index, see [llms.txt](https://perena.gitbook.io/perena/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://perena.gitbook.io/perena/products/yield-bearing-risk-assets/how-it-works.md).

# How it works

Deposit a risk asset, keep its price exposure, and seek more yield than simply holding it.

Yield-Bearing Risk Assets are yield-bearing versions of assets you already want to hold. Some assets include:

* **SOL\*** — backed by SOL
* **BTC\*** — backed by BTC (cbBTC)
* **GOLD\*** — backed by gold (PAXG)

Each works the same way, just with a different underlying asset.

Just as [USD\*](https://perena.gitbook.io/perena/products/usd-star-usd) makes stablecoins productive, these tokens put your SOL, BTC, gold and more to work.

Deposit the underlying asset and receive its yield-bearing token. You keep the asset's price exposure while the managed strategy seeks additional yield on top. For SOL\*, the goal is simple: earn more than holding a liquid staking token (LST). For BTC\* and GOLD\*, it's earning yield on assets that would otherwise earn nothing at all.

### How it works

1. Deposit the underlying asset (for example, SOL) and receive its token (SOL\*).
2. Hold the token while Perena puts the strategy to work.
3. Redeem the token for the underlying asset when you are ready to exit.

Your token balance stays the same. Its redemption value can grow in the underlying asset.

### Where the extra yield comes from

The strategy uses your deposited asset as collateral. It borrows against it and deploys capital into delta-neutral yield opportunities.

This aims to earn carry above what holding the asset alone would earn — more than an LST for SOL, and more than zero for BTC or gold.

Perena automatically manages positions, rebalances when needed, and accounts for fees.

### How you earn

You do not claim separate rewards.

When the strategy earns net yield, it increases the token's redemption value. Each SOL\* redeems for more SOL, each BTC\* for more BTC, each GOLD\* for more gold.

### Redeeming

Redeeming burns your token and returns the underlying asset at the current on-chain redemption price.

Redemptions settle immediately when liquidity is available. They may queue while the strategy frees deployed capital.

### Important

{% hint style="warning" %}
Extra yield is not guaranteed. Borrowing costs, market conditions, fees, and losses can reduce or reverse returns. SOL\* can lose value.
{% endhint %}