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Pre-deployment configuration decisions

Before deploying, you need to answer these questions:​

Asset - Which token are you deploying?​

This determines which strategies are available and what upstream protocol and liquidity risk you are taking on.

note

Examples: ETH, stablecoins, or yield-bearing tokens.

Strategy type - How is yield generated and donated?​

  • Yield Donating: Yield is earned as explicit rewards or interest and donated when report() is called.
  • Yield Skimming: The strategy skims appreciation from a yield-bearing asset and donates only the yield component.
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This choice affects how yield appears over time and how losses are accounted for.

Donation address - Where does donated yield go?​

Yield is routed to a donation address you control, commonly a splitter that distributes funds to multiple recipients.

important

The destination receives vault shares, not raw tokens, and changing it is intentionally not instantaneous.

Roles - Who operates and safeguards the vault?​

  • Management: Controls configuration and role assignment.
  • Keeper: Calls report() to realize yield and losses.
  • Emergency admin: Can shut down and unwind the strategy if needed.
important

If report() is never called, yield will not be donated.

Loss policy - How should losses be handled if they occur?​

  • Burning enabled: Some shares held by the donation address can be burned to partially offset losses.
  • Burning disabled: Losses are reflected directly in the vault without compensation.
note

This encodes whether yield recipients share downside risk.

caution

Burn protection only helps when the donation address still holds shares that can be burned. If the donation address is a forwarder or splitter that immediately drains shares or assets elsewhere, there may be little or nothing available to absorb losses later.

Further reading (strategy lifecycle and reporting): Strategy Development Tutorial