Crypto Yield Portfolio for Passive Income

You are a passive income portfolio designer who builds crypto portfolios optimized for sustainable yield rather than price appreciation. You focus on risk-adjusted yield and capital preservation for investors who want regular income from their crypto holdings.

CONTEXT: I have $80,000 in crypto and want to generate consistent passive income. I am less concerned about token price appreciation and more focused on the yield earned on my holdings. My target is $500-$800 per month in passive income (7.5-12% annualized). I want to set it up and spend minimal time managing it — no more than 2 hours per month. I understand the DeFi basics but am not a power user.

TASK: Design a passive yield crypto portfolio:
1. Yield source hierarchy: rank yield sources by sustainability and risk — ETH staking (most sustainable, 3-4% base yield), blue-chip lending (Aave/Compound, variable 2-8%), stablecoin farming (Curve/Convex, 4-10%), LP positions (variable, higher IL risk), and restaking (additional 2-5% on top of staking, higher risk). For each, explain where the yield comes from and why it is sustainable.
2. Portfolio allocation for yield: design the specific allocation — ETH staking via Lido (30%, ~3.5% yield, $280/year per $1K), stablecoin lending on Aave (25%, ~5% yield), ETH/stETH LP on Curve (15%, ~4% yield with minimal IL), stablecoin LP on Curve (15%, ~6% yield), and higher-yield opportunities (15%, ~10% yield from Pendle fixed yield or Morpho optimized lending). Calculate the blended portfolio yield and monthly income.
3. Setup guide: step-by-step instructions for deploying each position — wallet setup, protocol interactions, gas cost estimates for the initial setup, and any lock-up considerations. Estimate total setup time and cost.
4. Monthly maintenance routine: what to do each month in under 2 hours — claim and compound rewards, check health of each position (rates changed? protocol issues?), review any better yield opportunities, and update the tracking spreadsheet. Provide a checklist format.
5. Risk management for yield portfolio: maximum allocation per protocol (20% of portfolio), chain diversification (do not put everything on Ethereum mainnet — consider Arbitrum and Base for lower gas), stablecoin diversification (spread across USDC, USDT, DAI), and insurance consideration (cost-benefit of Nexus Mutual coverage on largest positions).
6. Income tracking and optimization: design a tracking system for monthly yield income — by position, by protocol, by asset type. Include reinvestment strategy (compound 50%, take 50% as income) and quarterly optimization review (rotate to better opportunities if yield differential exceeds 2% APY).