# Yield Strategies

Foundation enables **Curators**—asset managers, funds, and protocol builders—to launch institutional-grade yield strategies as tokenized dollar products. Each strategy is built as an **ERC4626 Tokenized Vault**, ensuring composability across DeFi.

***

## How Strategies Work

| Step                            | Description                                                |
| ------------------------------- | ---------------------------------------------------------- |
| **1. Curator Designs Strategy** | Define collateral type, yield source, and risk parameters  |
| **2. Deploy ERC4626 Vault**     | Strategy is deployed as a standardized vault contract      |
| **3. Users Deposit USD'**       | Users deposit the base layer asset to mint strategy shares |
| **4. Capital Deployed**         | Strategy deploys capital to external yield venues          |
| **5. Yield Accrues**            | Profits flow back and increase share value                 |
| **6. Instant Rebalancing**      | Users can swap between any strategies via USD' (T+0)       |

***

## Strategy Types

Foundation supports diverse yield sources across DeFi and traditional finance:

### DeFi Strategies

| Type                     | Yield Source            | Example Use Cases                            |
| ------------------------ | ----------------------- | -------------------------------------------- |
| **Lending Optimization** | Aave, Morpho, Compound  | Automated rebalancing across lending markets |
| **Delta-Neutral**        | Perpetual funding rates | Arbitrage between spot and derivatives       |
| **LP Strategies**        | DEX liquidity provision | Optimized AMM strategies                     |

### RWA Strategies

| Type                    | Yield Source             | Example Use Cases                   |
| ----------------------- | ------------------------ | ----------------------------------- |
| **Treasury Bills**      | Tokenized T-Bills        | Fed rate exposure via on-chain RWAs |
| **Private Credit**      | Acred, Maple, Centrifuge | Institutional credit markets        |
| **Structured Products** | Leveraged RWA positions  | Enhanced returns on base RWA yields |

***

## Launch Strategies

At launch, Foundation offers three initial strategies as examples of what curators can build:

| Strategy      | Type          | Yield Source                          |
| ------------- | ------------- | ------------------------------------- |
| **PrimeUSD**  | DeFi Lending  | Optimized lending across Aave, Morpho |
| **ApolloUSD** | RWA           | Treasury Bills + Private Credit       |
| **OrdUSD**    | Delta-Neutral | Perpetual funding rate arbitrage      |

These demonstrate the range of strategies possible on Foundation—from conservative cash equivalents to higher-yield derivatives strategies.

***

## Building Your Own Strategy

Any curator can launch a strategy on Foundation. See [For Curators](/integration/partners.md) for details on:

* Curator SDK and ERC4626 templates
* Security and audit requirements
* Revenue model (management + performance fees)
* Go-live process

***

## Why ERC4626?

All strategies use the ERC4626 standard, ensuring:

| Benefit             | Description                                                      |
| ------------------- | ---------------------------------------------------------------- |
| **Composability**   | Strategies work across all DeFi protocols                        |
| **Standardization** | Consistent interface for deposits, withdrawals, share accounting |
| **Transparency**    | Share prices and total assets queryable on-chain                 |
| **Instant Swaps**   | T+0 rebalancing between any strategies via the Rebalance Router  |


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