Yield sources

Strategies interact with underlying yield sources. Yield sources invest and withdraw funds from underlying protocols on behalf of users and extract rewards. These rewards are distributed among those who voted for the yield source or strategy.

Yield sources for strategies include pools, gauges, and vaults on third-party protocols, such as AAVE, Curve etc. They are grouped into strategies based on similar characteristics: assets, risk profiles, and yield principles. Having multiple yield sources within a strategy allows for investment diversification and smooth out APR fluctuations in underlying protocols, with rebalancing occurring based on voting results.

Cadabra team constantly looks for new earning opportunities and monitors the emergence of promising protocols. Each underlying protocol undergoes a security assessment and expert assessment before being integrated. Once a yield source is implemented and tested, it is added to the strategy with a 3-7 day time lock, giving users time to decide whether they trust the new protocol.