Strategy Types

The engine deploys capital across several strategy types, each representing a different approach to generating yield.

Collateralized Lending

The core strategy type. Deposit a yield-bearing asset as collateral, borrow against it, and re-deploy the borrowed funds to amplify the base yield. The engine can construct strategies that span multiple protocols to capture rate differentials.

SOL Multiply

A specialized form of collateralized lending where both the collateral and borrow are SOL-correlated (e.g., LST collateral, SOL borrow). Because the assets move together, the liquidation risk is lower than for uncorrelated pairs, allowing the engine to apply a smaller safety buffer.

JLP Delta-Neutral

Captures Jupiter Liquidity Provider pool trading fees while hedging directional exposure via perpetual shorts, resulting in a market-neutral position.

Perp Funding Arbitrage

Captures funding rate spreads when perpetual funding is significantly negative. This is classified as a trading strategy and is excluded from passive risk profiles.

Exponent PT Positions

Fixed-rate yield via Exponent’s yield tokenization — purchasing Principal Tokens at a discount and holding to maturity.

How the Engine Chooses

The engine evaluates all available strategies simultaneously and allocates capital to maximize total portfolio yield subject to concentration limits, capacity constraints, risk parameters, and the active risk profile. The result is a diversified allocation that balances yield, risk, and capacity across all available opportunities.