> For the complete documentation index, see [llms.txt](https://docs.creditcoop.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.creditcoop.xyz/core-concepts/vaults/liquid-strategy.md). # 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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.creditcoop.xyz/core-concepts/vaults/liquid-strategy.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.