Strats: Trustless Strategy Vaults
Architecture Overview
Strats represent isolated smart contract vaults that encapsulate trading logic, risk parameters, and capital allocation mechanisms. Each Strat operates as an autonomous trading entity with immutable execution rules and transparent performance tracking.
Core Components
Strategy Encapsulation
Isolated Execution Environment: Each Strat maintains separate capital pools preventing cross-contamination of risk
Parameterized Logic: Trading algorithms encoded with specific entry/exit conditions, position sizing, and risk limits
Time-Locked Deployment: Strategies execute within defined epochs with clear inception and expiration timestamps
Non-Custodial Architecture: Traders cannot access deposited capital directly—only execute trades through the smart contract
Performance Attribution
On-Chain PnL Tracking: Every trade recorded immutably with transparent profit/loss calculations
Real-Time NAV: Net asset value computed per block enabling continuous performance monitoring
Historical Analytics: Complete trade history, drawdown periods, and return distributions accessible via subgraph queries
Risk Metrics: Sharpe ratio, Sortino ratio, maximum drawdown, and volatility calculated algorithmically
Strategy Taxonomy
Risk Profiles
Conservative: Low-frequency rebalancing, minimal leverage, focus on capital preservation
Balanced: Medium-frequency trading, controlled position sizing, targeting consistent returns
Aggressive: High-frequency execution, leverage utilization, maximizing absolute returns
Market Neutral: Delta-neutral strategies, arbitrage focus, minimizing directional exposure
Trading Methodologies
Momentum: Trend-following algorithms capitalizing on directional moves
Mean Reversion: Statistical arbitrage exploiting price deviations from equilibrium
Arbitrage: Cross-exchange or cross-asset price discrepancy capture
Liquidity Provision: Automated market making with dynamic spread adjustment
Deployment Process
No-Code Construction
Select base strategy template from pre-audited modules
Configure parameters via visual interface (entry conditions, position sizing, stop losses)
Backtest against historical data with slippage and fee modeling
Deploy to testnet for live validation
Launch on mainnet with initial capital seed
Permissionless Listing
No gatekeepers determining strategy approval
Automatic ranking based on risk-adjusted performance
Open competition where capital flows to proven performers
Transparent fee structures encoded in smart contracts
Capital Allocation Mechanics
Investors interact with Strats through standardized interfaces:
Deposit: Allocate capital to chosen Strat receiving proportional vault tokens
Monitor: Track real-time performance via on-chain data feeds
Withdraw: Redeem vault tokens for underlying assets plus/minus performance
Rebalance: Shift allocations between Strats based on evolving risk preferences
The Strat architecture fundamentally reimagines fund structures—replacing legal entities with smart contracts, quarterly reports with real-time analytics, and trust requirements with cryptographic guarantees.
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