How Decentralized Yield can work

The DeYld whitepaper describes a DeFi protocol that aims to earn passive income by arbitraging funding rates between perpetual futures on decentralized exchanges and paying out in USDt. The document says DeYld opens short and long positions on two exchanges when their funding rates differ, closes them once the rate stabilizes, and repeats the process, with users depositing USDt for a one-month cycle. Users pay 10% of earned yield in YLD tokens, and the paper states that DeYld will never promise an exact APY due to market volatility.