Public Mint EARN is able to generate returns by tapping into diverse, yield-generating products offered by DeFi (like Compound or Aave) and CeFi (like Celsius* and Abra) partners. Earnings from these third parties typically come from overcollateralized lending products.
EARN generates dynamic returns based on the current rates offered by these CeFi partners and integrated DeFi protocols, in proportion to the allocation determined by governance. This means that the rates are not set or guaranteed in any way by Public Mint.
This works as a risk management strategy by allowing you to dip your toes into high rates offered at the crypto space without all of the risk typically associated with using a single partner.
* Due to the current situation at Celsius, Public Mint is currently reassessing the relationship.