Yield Strategy

The strategy receives borrowed stablecoins and deploys them to earn yield. Profit is the spread between yield earned and borrow cost.

Current Production Strategy

All active vaults currently use PmUsdCrvUsdStrategy.

Flow

  1. Borrow USDT from loan manager.
  2. Swap USDT -> crvUSD (Curve).
  3. Add single-sided liquidity into pmUSD/crvUSD pool.
  4. Stake LP in Stake DAO reward vault.
  5. Harvest CRV, swap CRV -> crvUSD, and compound.

Strategy Interface (Vault-Controlled)

  • deposit(uint256)
  • withdraw(uint256)
  • withdrawAll()
  • harvest()
  • balanceOf()
  • pendingRewards()
  • emergencyWithdraw()

Strategy admin methods are callable by the vault, not by arbitrary users.

Slippage and Price Safety

  • Strategy-level slippage has explicit caps.
  • Stablecoin swap paths use oracle-backed floor logic for safety checks.
  • Virtual price checks protect against manipulated LP valuation drift.

Operational Notes

  • Harvest is permissionless at vault level: users/keepers can trigger compounding for everyone.
  • Strategy value is reported in debt-asset terms and converted to collateral-equivalent value for vault accounting.
  • Emergency path exists to unwind quickly if external integrations degrade.

Why This Design

  • Keep collateral side conservative in lending layer.
  • Isolate yield logic in modular strategy contracts.
  • Allow clear accounting between direct collateral and debt-side deployed value.