Yield Strategy

Overview

All depositedDepositThe action of investing collateral into a raise. The raise contract receives collateral, routes it to the yield strategy, and mints a pFT position NFT. 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 and the project ecosystem budget. If buyback is enabled, yield surplus can also fund buyback and burn.. YieldYieldReturns generated by the yield strategy on deposited collateral. Variable, not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. funds:

• Platform feePlatform FeePercentage of yield taken by the platform (10% at launch), allocated to the DAO. No fee on core user actions (deposit, redeem, withdraw). flow
• Project ecosystem budget
• Optional project buyback/burnBuyback and BurnOptional mechanism where released capital from withdraws and yield surplus can be used to buy back and burn project tokens, reducing circulating supply. Enabled by the raise creator at raise creation. 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. The raise contract receives collateral, routes it to the yield strategy, and mints a pFT position NFT. 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 routes to the yield strategy and backs investor principal protection. is supplied to Aave V3 pools. Strategy behavior is simple at launch:

• Supply-side only
• No leverage loops
• No directional strategies

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:

$$\text{yield}=\text{strategy value of capital}-\text{principal}$$

In the contracts:

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

Yield Flow

1

Deposited Capital

Investor collateral enters the system

2

Strategy

Aave V3 at launch

3

Yield Accrues

Strategy value grows above principal

4

Platform Fee

10% of yield extracted for DAO

5

Project Treasury

Remainder funds ecosystem (optional buyback)

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

Each raise creator configures the routing split between ecosystem budget and optional buybackBuyback and BurnOptional mechanism where released capital from withdraws and yield surplus can be used to buy back and burn project tokens, reducing circulating supply. Enabled by the raise creator at raise creation./burn allocation at raise creation.

Claiming is permissionless. Cadence is flexible (e.g., daily, weekly, or 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 and the project ecosystem budget. If buyback is enabled, yield surplus can also fund buyback and burn. (e.g., Morpho, Ethena sUSDe, Lido stETH) may be added post-launch. Custom strategy support is on the roadmap but not yet available.

Diversification Rules

At launch, Aave V3 is the only supported strategy. Additional strategies will be added 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 cannot affect other 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 routes to the yield strategy and backs investor principal protection. pool. No global shared risk pools exist across unrelated projects.