Farms / Investment Strategies

The terms Farm and Investment Strategies are used interchangeably within the protocol, where a Farm represents a specific investment strategy managed by an Institutional Farm Owner. These strategies are tailored to align with the Farm Owner's objectives and promised returns. Farm Owners also establish key parameters, such as the number of Yield Yodas, Verifiers, and the distribution of incentives among stakeholders.

Each Farm accepts a single token as input, though some may generate multiple output tokens. Returns can be issued in the Farm’s native asset or supplemented by additional subsidiary rewards, depending on the strategy. Liquidity provisioning is regulated by Verifiers and governed by the rules set by the Farm Owner. While a Farm Owner may also serve as a Yield Yoda, they are prohibited from acting as the sole Verifier within the same Farm to ensure impartiality.

Investment allocations within a Farm can either focus on a single Yield Yoda or be diversified across multiple Yield Yodas, based on criteria defined by the Farm Owner. Examples of Farms include could range from DeFi specific farming techniques such as staking and lending or, intelligent balanceable Index Funds, and more novel AI agentic Fund of Funds.

Investors contribute their principal in the token associated with the selected Farm. This principal asset is secured and wrapped before being deposited into a Vault. Verifiers within the Farm are tasked with overseeing the conversion and allocation of this capital to the Yield Yodas, ensuring alignment with the Farm's defined strategy and objectives.