Is an On-Chain Yield Card Safe? (A Beginner’s Guide to Risks, Yield, and Payments)

According to Chainalysis, in 2025, over** $3.4 billion** worth of cryptocurrency was stolen, and personal wallet thefts surged to 158,000 cases, mainly due to private key leaks and centralized platform issues. As crypto wallets evolve from being merely “storage tools” into integrated platforms for payments, asset allocation, and yield, on-chain yield cards are attracting increasing attention.

For new users, however, the most pressing question remains:** Is an on-chain yield card safe?**** **Simply put, there is no absolute answer to “completely safe” or “completely unsafe.” Their safety primarily depends on three factors: whether **funds are self-custodied, **whether **yields are verifiable on-chain, **and whether the funds can continue earning while remaining fully available for payments.

Common Concerns About On-Chain Yield Cards

1. Asset Custody and Control

Many users worry that once funds are deposited into a yield card, control shifts entirely to the platform. Safer on-chain yield card designs emphasize on-chain transparency and verification.

2. Yield Volatility and Protocol Risk

On-chain yield is not traditional interest. It fluctuates based on liquidity, protocol mechanism, and market conditions. Understanding this distinction is essential when evaluating whether an on-chain yield card is safe.

3. Payment Reliability

As a payment tool, users also care about the card’s reliability for everyday spending. A secure on-chain yield card allows funds to keep earning while remaining fully available for payments, ensuring daily spending is never interrupted.

Are On-Chain Yield Cards Safer Than Centralized Finance Apps?

When users search for “Is the on-chain yield card safe?”, they usually do not seek a “zero-risk” answer; rather, they want to know whether the risk of this new type of card is more understandable and controllable than the traditional financial tools they are familiar with.

A natural reference object is the centralized financial app (CeFi app) that users use on a daily basis. Both offer payment and yield functions, but there is an essential difference in the underlying logic of “security” :

• In centralized finance apps, “security” mainly relies on the platform’s credit: users must trust the platform’s risk management capabilities.
• The on-chain yield card redefines security through verifiability, transparency, and systematic design: users no longer have to rely entirely on a single platform but can directly verify the status of their assets through blockchain.

This does not mean that on-chain yield cards are risk-free; instead, it makes risks more explicit and understandable, and enables users to manage them more proactively.

The following table compares the security logic differences between on-chain yield cards and centralized financial apps from key dimensions such as user visibility, custody mode, and risk exposure methods:

How BenPay On-Chain Yield Card Makes Risk More Visible, Understandable, and Manageable

1. Self-Custody and On-Chain Transparency

One of the core considerations when evaluating the safety of an on-chain yield card is how funds are held and how much control users have over their assets. The BenPay On-Chain Yield Card adopts a self-custody model, ensuring that assets remain fully under the user’s control while emphasizing on-chain visibility:

• Self-Custody: Assets are always under the user’s control
• On-Chain Verifiable: All operations are recorded on-chain, with full transaction transparency

While on-chain transparency cannot eliminate market or protocol risks, it transforms hidden risks into visible ones, allowing users to clearly understand the flow of funds. Users still need to assess the potential fluctuations caused by on-chain protocols and market conditions themselves.

2. Source of Yield and Security

The BenPay On-Chain Yield Card utilizes a unique “three-layer account” architecture to achieve intelligent coordination of fund states:

• **Self-Custody Wallet (on the BenFen Chain): Users fully control their private keys, maintaining 100% ownership of their assets.
• Card Account Balance: Once on-chain yield is activated, funds automatically participate in market-verified blue-chip DeFi protocols. Yields are calculated and settled daily, fully verifiable on-chain.
• Card Balance: Used for everyday payments, always available to ensure stable spending and liquidity.

Through the “three-layer account” structure, the same funds no longer need to switch repeatedly between “safety, yield, and payment.” Assets can simultaneously accrue yield under self-custody while remaining available for use. All operations are verifiable on-chain and fully transparent, making yield-related risks visible, understandable, and manageable, while ensuring uninterrupted and reliable payment functionality.

BenPay On-Chain Yield Card FAQs

1. Are there any additional fees for enabling on-chain yield on the card account?

No. Users can independently activate the automatic on-chain yield function for their card accounts. Recharges and consumption will not be affected, and no additional fees will be incurred for on-chain yield.

2. Will the card account balance be locked, or can I spend it at any time?

No. The card account balance participates in on-chain yield, while the card balance can be used for spending at any time. When making a payment, the required amount is transferred from the card account balance to the card balance; any unused card account balance continues to earn yield without affecting everyday payments.

3. Are there risks with on-chain yield cards?

Any on-chain product carries risks. BenPay’s on-chain yield cards offer multiple security guarantees. They are self-custodial on-chain, and all operations are verifiable on-chain, and the entire transaction process is transparent, ensuring the safety and reliability of users’ assets. It should be noted that on-chain yield may still be affected by the performance of the protocol and the market environment. Users should make judgments based on their own risk tolerance.

4. How Are On-Chain Yields Calculated? Are They Volatile?

Yield is generated from backend DeFi strategies. The system calculates and distributes earnings daily. Users can view both “Yesterday’s Earnings” and “Accumulated Earnings” within their card account balance. Earnings may fluctuate due to factors such as strategy performance and available balance. This is normal and does not affect fund availability or card payment functionality.

5. Are On-Chain Yield Cards Suitable for DeFi Beginners?

BenPay On-Chain Yield Card is designed to be beginner-friendly. Users do not need to manually operate complex DeFi protocols. The yield feature runs within the card account, while payment and spending functions remain fully available. This allows newcomers to safely experience on-chain yield even without any prior DeFi knowledge.

Conclusion

In summary, there is no “absolutely safe” or “absolutely unsafe” answer for on-chain yield cards—their security fundamentally depends on the specific design. To evaluate the security of an on-chain yield card, you can focus on the following three key aspects:

• Whether users retain full control of their funds: This ensures assets are always under the user’s direct control, preventing the platform from having direct access.
• Whether yields and asset flows are verifiable on-chain: This makes risks transparent, allowing users to monitor their funds’ status in real-time.
• Whether the yield-earning mechanism and payment are independent: Ensure that the funds increase in value while daily payments can be made at any time.

When these conditions are clearly and transparently met, risks become more visible, understandable, and manageable, empowering users to make a rational decision on whether to use an on-chain yield card.