Strategy serves as the primary yield tool on Cadabra.
Strategies provide optimized passive yield for its participants by aggregating various yield sources. Strategies constantly rebalance participants’ assets across underlying protocols to maximize APY. The goal of each strategy is to give users a set-and-forget experience: once funds are deposited, the strategy will work continuously to maximize APY while keeping the risk profile as low as possible.
Strategies remove the need to monitor the market in the search for yields and new protocols. We maintain each strategy and keep an eye on the entire DeFi market to find the most viable yield sources.
Most strategies follow the “same-type” principle: assets of a similar nature (like stablecoins with the same risk profile, or native tokens and their liquid staking derivatives) are mutually interchangeable within the strategy, and can change their proportions to earn higher APY. This allows the strategy to broaden reward opportunities and to optimize yield by converting and rebalancing across yield sources and assets as needed. Each strategy has an info card describing the assets and platforms it is exposed to, and there are guarantees on the smart contract level to ensure that assets can be allocated only between the specified protocols.