Faroo outlined an approach to combining liquid staking and real-world asset-linked yield in composable on-chain strategies.

Liquid staking protocol Faroo outlined plans for composable yield infrastructure that combines staking rewards with real-world asset (RWA)-linked yield.

Faroo’s approach centres on two assets, stPROS and tbPROS. The former represents staked PROS in a liquid form, while the latter extends the model to RWA-linked yield through a vault-based structure. Together, the assets form the basis of Faroo’s Hybrid Yield approach.

By combining different yield sources and liquidity options, vaults could support more diversified strategies and allow different protocols to use yield-bearing assets as building blocks.

Faroo also outlined three ways users can access liquidity from its yield-bearing positions: standard redemption, instant liquidity and exits through decentralised exchanges. The options are intended to accommodate different liquidity needs, timing and market conditions.

Tyrone, Co-Founder of Faroo, said: “We believe staking and RWA-linked yield can serve as complementary building blocks for the next generation of on-chain strategies.”

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