Strategies
A strategy contains the logic for yield-farming using allocated funds from the vault. Each vault deploys a single strategy that is designed by the vault strategist. The goal of a strategy is to maximize the return of a select pool's asset. Any individual can create a yield-farming strategy for a vault. Strategists who successfully deploy their strategy within a vault receive a percent of the vaults generated yield in the form of a performance fee.

Performance Fees

All strategy profits are subject to a performance fee that is paid in LP tokens and split between the vault's strategist and the Backd treasury. Performance fees allocated to the Backd treasury are controlled by the Backd DAO. Vault performance fees benefit the Backd protocol by facilitating the deployment of yield farming strategies which in turn generate protocol profits.
In order for a new strategy to be deployed, it must receive a majority vote from the Backd DAO
Last modified 3mo ago
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