Strategies

TL;DR

Each protocol has a strategy contract on Stellar that adapts the generic deposit/withdraw/harvest/balance operations to protocol-specific mechanics. The engine picks which pool to use; the strategy knows how to interact with it on-chain.

What a Strategy Is

A strategy is a Soroban smart contract that translates generic vault operations into protocol-specific calls. The strategy-trait interface requires: deposit, withdraw, harvest, balance, asset. Every strategy implements these five functions. The rebalance engine doesn't need to know Blend vs. Soroswap internals — it calls the same interface on every strategy.

Blend Strategy

Blend is a lending protocol on Stellar. The Blend strategy:

Supplies USDC or XLM into a Blend lending pool in exchange for bTokens (which accrue interest over time).
Withdraws by redeeming bTokens for the underlying asset.
Harvests BLND emissions — protocol incentive tokens distributed to suppliers. The harvest cron claims them every 4 hours.
Balance reads the current bToken value, which includes accrued interest.

Key fact: Blend lending has zero impermanent loss. It's the only protocol used by the Safe preset.

Strategy contract: strategy-blend-USDC / strategy-blend-XLM (two instances — one per base asset).

Soroswap Strategy

Soroswap is a Stellar DEX using an xy=k AMM model. The Soroswap strategy:

Deposits by splitting your USDC or XLM into two halves, swapping one half for the pair asset, and adding both as liquidity. Receives LP tokens.
Withdraws by redeeming LP tokens, then swapping the non-base-asset half back to the base. 97% slippage protection (3% max).
Earns from trading fees collected by the LP pool.

Key fact: Soroswap involves impermanent loss. The engine monitors IL exposure through position sync and can rebalance away if IL grows.

Strategy contract: strategy-soroswap-USDC / strategy-soroswap-XLM.

Aquarius Strategy

Aquarius is a Stellar AMM. Similar mechanics to Soroswap with different pool types:

Connects to Aquarius pools via on-chain token balance reads (more accurate than API-based TVL estimation).
Used in Balanced and Aggressive presets for supplemental yield.

Strategy contract: strategy-aquarius-USDC / strategy-aquarius-XLM.

Phoenix Strategy

Phoenix is a newer Stellar DEX with liquidity pools:

Used in the Aggressive preset as a minor allocation for extra yield diversification.
Similar LP mechanics to Soroswap with different pool configurations.

Strategy contract: strategy-phoenix-USDC / strategy-phoenix-XLM.

Pool Discovery

The engine discovers which pools exist by:

Querying Blend SDK for all lending pools and their APY/reserve data.
Querying Soroswap API for LP pools, volumes, and estimated yields.
Computing a risk score per pool (TVL depth, volume consistency, protocol track record).
Persisting pools with a unique key: (protocol, poolAddress, reserveIndex, assetSymbol).

When a pool disappears or its APY drops below 0, the pool is evicted on the next discovery cycle.

Strategy vs. Pool

A common confusion: the strategy is the adapter; the pool is the venue.

Blend strategy -> Blend Fixed USDC pool. The strategy knows how to supply. The pool is where the funds go. One strategy can serve multiple pools (e.g., Blend Fixed USDC, Blend Variable USDC both use the Blend strategy). The engine picks the pool; the strategy handles the interaction.

Read the contract addresses at Trust & Safety > Audits & Addresses.