DeFi traders have developed complex strategies to amplify the yield of Strategy's (STRC) token, which already pays an annualized dividend of 11.5%. By re-routing dividend payouts through multiple blockchain protocols and using leverage, traders are able to manufacture yields that can reach up to 39% APY.
The base yield of STRC is already extreme, with a 450-basis-point premium over the average junk bond. Strategy has hiked its dividend rate seven times since launching STRC at 9% in July 2025, and DeFi traders are now adding even more risks to amplify this yield.
The use of leverage and multiple protocols increases the complexity and risk of these strategies. If STRC's price falls or its dividend rate is cut, these approaches could backfire, resulting in significant losses for traders.