Liquid Strategy

Capital not deployed into credit positions shouldn't sit idle. The Liquid Strategy invests the vault's uncommitted balance into approved external ERC-4626 vaults in the same underlying asset, keeping it productive while remaining available for credit deployment and redemptions.

Capabilities

• Allocation across approved 4626 vaults. The Curator reallocates between approved vaults with explicit slippage protection (minimum shares on deposit, minimum assets on withdrawal) on every movement.

• Vault migration. The full balance can be migrated from one approved 4626 vault to another, again with slippage minimums, and allowances are zeroed after every operation.

• Ethena support. Where enabled, the strategy can hold USDe and sUSDe; their value is marked into strategy assets using oracle prices, normalized to the vault's underlying asset.

• CoW Swap integration. Token conversions are executed through CoW Protocol using pre-signed orders — the Curator approves the token, pre-signs the order UID, and can cancel by revoking the pre-signature. Settlement occurs at CoW's audited settlement contract; the strategy never hands assets to an arbitrary router.

Accounting

Strategy total assets = redeemable value of all 4626 shares held + underlying asset balance + oracle value of any Ethena holdings. This figure rolls up into vault total assets and the share price continuously.

All strategy operations are restricted to the vault's Curator (owner) role, and the strategy can be swapped out entirely by the Curator via the vault's migrateLiquidStrategy — the old strategy is emptied into the new one atomically, with the vault's assets never leaving the system.