💰Yield sources

Yield sources are third-party protocols integrated into strategies through adapter smart contracts. Adapters standardize interactions with multiple protocols integrated into each strategy.

At present, Cadabra team develops, manages strategies, and integrates new tokens and yield sources.

After the launch of the DAO, the community will participate in the strategy development.

The Cadabra team is constantly looking for new yield opportunities using two main sources:

  • A research sub-team manually investigates DeFi space

  • Automated monitoring of yields via major crypto data sites

Each potential source undergoes security scoring, technical review, and adapter implementation. These stages are displayed on strategy cards as "Monitoring," "In Review," and "In Progress."

Strategy’s adapters have several states:

  • Active: Means that adapter is used in liquidity allocations i.e. new funds can be allocated to this adapter (both from new users or as part of the rebalancing process between adapters). Multiple adapters can be active at the same time.

  • Inactive: Inactive adapters may still hold liquidity, but new funds cannot be added. Liquidity can only be removed from inactive adapters.

  • Idle: These are inactive adapters that have no liquidity.

The state of the adapters can change due to fluctuations in the yield of the underlying protocols or in response to emergency events.

Your deposited funds are allocated across the protocols specified in the strategy’s smart contract (and also listed in the strategy's info card). Protocols can be added/removed. New integrations have a 7-day timelock period before a strategy starts to use it. This time lock allows users to assess new protocols before the integration begins, establishing transparency and confidence.

Last updated