I’m trying to understand how some crypto platforms claim to generate “automated yield.”
I was talking to someone recently who said he earns from a platform that uses trading automation instead of staking. He tried explaining it, but it basically sounded like the system just trades in the background and users earn from it, which I didn’t fully understand.
It made me think of early apps that promised passive income just from running algorithms continuously, but I’m not sure how that works in practice.
Can someone explain in simple terms how these automated systems actually generate returns without the marketing language?
And how different is this from staking or DeFi lending in terms of how the yield is actually produced?
Update: I saw Basis.pro mentioned in relation to crypto yield systems and I’m curious how it actually works. How are the returns produced?