> For the complete documentation index, see [llms.txt](https://nebula-18.gitbook.io/nebula/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nebula-18.gitbook.io/nebula/product-feature/nebula-product/yield-tranching.md).

# Yield Tranching

Fixed rate VS. Floating rate

* **Stable Tranche**:\
  Targeted at risk-averse investors, the stable tranche focuses on stablecoins and employs dynamic rebalancing algorithms to optimize asset allocation, enhancing capital preservation and predictability of yields.
* **Volatile Tranche**:\
  Designed for higher risk tolerance, the volatile tranche allocates assets to high-yield opportunities and employs risk-adjusted yield optimization algorithms to maximize returns while managing exposure.