> For the complete documentation index, see [llms.txt](https://brd-digital.gitbook.io/brd-digital-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://brd-digital.gitbook.io/brd-digital-docs/yield.md).

# Yield

Sovereign yield that used to require a local entity, made reachable on-chain and composable with DeFi.

Brazilian sovereign debt pays one of the highest real yields in the world, and it has been difficult to reach. Holding it meant a local entity, a local bank, local presence, and the cost of maintaining all three.

That is a distribution problem, not an investment one. The yield exists. Access to it is what has been scarce.

BRD Digital puts these instruments on-chain so a yield-bearing position becomes reachable from a wallet and composable with the rest of on-chain finance, rather than trapped in a brokerage account.

## The products

<table><thead><tr><th width="140">Product</th><th width="130">Denominated</th><th width="110">Status</th><th>Underlying</th></tr></thead><tbody><tr><td><strong>sBRD</strong></td><td>BRL</td><td>Live</td><td>Brazilian Treasury LFTs</td></tr><tr><td><strong>sBRDusd</strong></td><td>USD</td><td>Coming</td><td>Brazilian Treasury LFTs, USD-settled</td></tr></tbody></table>

These are yield products, not stablecoins. Neither is a settlement asset, and neither is pegged. If you want something to pay with, that is [BRD](/brd-digital-docs/stablecoin.md).

## Three ways to reach them

Both products are reachable by all three routes. What changes is who you are dealing with, and what risk you take.

<table><thead><tr><th width="180">Route</th><th>What it means</th></tr></thead><tbody><tr><td><strong>Directly</strong></td><td>A verified account with BRD Digital. Subscribe and redeem from the dashboard.</td></tr><tr><td><strong>Through a partner</strong></td><td>A verified third party offers the product inside its own application. Its users are onboarded by that partner.</td></tr><tr><td><strong>On-chain</strong></td><td>A transaction with the protocol rather than an onboarding with BRD Digital. This is what lets these products reach wallets that would never open an account.</td></tr></tbody></table>

## Where the yield comes from

The return is the coupon on sovereign paper. No strategy, no leverage, no credit book, no directional position.

* **sBRD** holds the same Brazilian Treasury LFTs that reserve the stablecoin. Its return is that reserve's return passed through to the holder rather than retained.
* **sBRDusd** holds the same Brazilian paper, settled in dollars.

## What moves the return

**Policy rates.** The instruments track the Brazilian policy rate. When the rate moves, accrual moves.

**Bond prices.** A position is marked against market prices, so movement in the underlying affects realised performance, most visibly over short holding periods. LFTs are floating-rate, which limits this considerably compared with fixed-coupon paper, but it does not remove it.

A quoted rate describes carry. It is not a floor on returns, and nothing about it is fixed or promised.

## What the risk actually is

Worth being precise, because the answer differs by route.

**The collateral carries no smart-contract risk.** The bonds are held off-chain, registered at the central bank. A contract failure cannot make the collateral disappear, because the collateral was never in a contract. That is a deliberate structural choice.

**The DeFi route adds smart-contract risk, in exchange for returns.** Using a position as collateral in a lending market, and looping it through something like Morpho, raises the return and exposes you to that protocol. The risk is additive, opt-in, and sits with the protocol rather than with the reserve.

Sovereign, rate, price and liquidity risk always apply. See Risk Disclosures.

## DeFi

Yield positions are designed to be usable as on-chain collateral. **Morpho** and other lending markets are coming as additional routes.

{% hint style="info" %}
Nothing in this section is investment advice, and no figure in these docs is a promise of return.
{% endhint %}


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