Yield Strategy

Overview

All depositedDepositThe action of investing collateral into a raise. Collateral is received by the raise contract, routed to the yield strategy, and a pFT position NFT is minted. At deposit time, a live oracle price feed determines USD notional for FT allocation via deposit-time conversion. capital is routed to a yield strategyYield StrategyProtocol used to generate yield on deposited capital. Aave V3 is the only supported strategy at launch. Yield funds the platform fee, project ecosystem budget, and buyback and burn.. All capital is put to work. YieldYieldReturns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. is used to fund:

• Platform feePlatform FeePercentage of yield taken by the platform (10% at launch), allocated to the DAO. No fee is charged on core user actions (deposit, redeem, withdraw). flow
• Project ecosystem budget
• Project buyback/burnBuyback and BurnMechanism where released capital from withdraws and yield surplus are used to buy back and burn project tokens, reducing circulating supply. allocation

At launch, the only available strategy is Aave V3.

Aave V3 (Default)

Note

Only AAVE V3 will be supported at launch.

DepositedDepositThe action of investing collateral into a raise. Collateral is received by the raise contract, routed to the yield strategy, and a pFT position NFT is minted. At deposit time, a live oracle price feed determines USD notional for FT allocation via deposit-time conversion. collateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. is supplied to Aave V3 pools. Strategy behavior is intentionally simple at launch:

• Supply-side only
• No leverage loops
• No complex directional strategy behavior

Why Aave at launch

• High integration maturity
• Deep liquidity in supported assets
• Battle-tested production history
• Compatible with launch assets (USDC, USDT, WETH, wBTC)

How yield is tracked

Conceptually:

yield = strategy value of capital - principal

In the contracts:

• AaveStrategy.valueOfCapital() reads aToken balance
• AaveStrategy.yield() is valueOfCapital - totalSupply (floored at 0)

Typical APY ranges (variable, not guaranteed)

Asset	APY Range
USDC / USDT	2-8%
WETH	0.5-3%
wBTC	0.1-1.5%

Rates are variable and market-dependent.

Yield Flow

Deposited capital -> Strategy -> Yield accrues
Yield claimed -> Platform fee extracted -> Remainder to project treasury

See Capital Lifecycle for how yieldYieldReturns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. connects to buybackBuyback and BurnMechanism where released capital from withdraws and yield surplus are used to buy back and burn project tokens, reducing circulating supply./burn and capital exit paths.

Project-side routing is configured by project policy (ecosystem budget versus buybackBuyback and BurnMechanism where released capital from withdraws and yield surplus are used to buy back and burn project tokens, reducing circulating supply./burn allocation).

Claiming is permissionless. Cadence is operationally flexible (for example daily/weekly/threshold-driven).

Future Strategies

Additional yield strategiesYield StrategyProtocol used to generate yield on deposited capital. Aave V3 is the only supported strategy at launch. Yield funds the platform fee, project ecosystem budget, and buyback and burn. (e.g., Morpho, Ethena sUSDe, Lido stETH) may be added in the future. Custom strategy support is on the roadmap but not available at launch.

Diversification Rules

At launch, Aave V3 is the only supported strategy. Additional strategies will be added incrementally after risk review, maintaining isolation per raiseRaise IsolationEach raise operates with independent reserve collateral accounting, position state, yield strategy routing, and admin controls. A failure in one raise does not affect unrelated raises. and per collateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. pool. There are no global shared risk pools across unrelated projects.