# Yield on Collateral Phase aiming to be a liquidity platform must provide users with tools to use their liquidity. Borrowing cash is the core instrument of Phase, but to achieve higher capital efficiency we also use that collateral to earn yield. This yield must come from a source where losses should be small, unlikely, or impossible. Smart contract hacks, exploits, and rugs do happen, but that is a [risk](/protocol/acknowledgments.md) **you take** with DeFi. Phase aims to ensure the instruments we use to generate yield on the user's deposits are as safe and well-backed as possible.\ \ Phase is also aiming to build its own in-house financial instruments, giving more use for CASH and providing more secure and undiluted ways to earn with collateral.\ \ There are multiple ways Phase could provide yield from one-sided deposits. The amount available on the mainnet launch is still to be determined, but we will keep adding them as time goes on. Some of the options include: * Providing collateral on platforms such as Aave and Compound * One-sided yield farms on tools such as Beefy * First-party financial instruments --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.phase.cash/vaults/yield-on-collateral.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.