# Basket Assets Related Activities

One of the key features of OpenDelta's Index Protocol is its ability to generate additional yield from its basket assets. Many native tokens can be staked, lent out, or deposited into DeFi money markets — a process we call **yield activation**.&#x20;

However, this approach introduces additional risks, with the exact level of risk varying depending on the specific yield-generating activity. OpenDelta employs three primary methods to generate yield:

* **Staking**
* **Lending**
* **DeFi activities**

In some of these cases, OpenDelta may engage with other counterparties or smart contracts that could introduce additional levels of risk, including smart contract vulnerabilities, counterparty default, limited liquidity due to asset lock-ups, potential regulatory or legal uncertainty, slashing penalties from validator misbehavior or downtime in staking, and other operational risks linked to third-party protocols and custodians. Such risks could negatively affect the performance, liquidity, or redemption of index tokens and may result in partial or total loss of basket assets.

Our risk team evaluates each of these opportunities on a case-by-case basis and creates operating procedures to take advantage of them in the most secure and trustless way possible.&#x20;

Initially, OpenDelta will only execute activities available within custodial environment to minimize risks.&#x20;


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