Strategies

Strategies are composable smart contracts with execution logic to carry out financial strategies. Within every Vault there may be one or many strategies. Stratgies help compliment a vault's long-term objective with shorter-term, adaptabled objectives that serve the higher order objective. Strategies are integrated as sub-components of vault smart contracts to execute market strategies, within constraints set by the Vault. Strategies may be developed independently or in conjunction with members of a vaults. Once a strategy is developed, it is available to be instantiated as a part of any number of vaults. Developers will be able to use Quasar’s unique interface to work with smart contract templates and build custom strategies.

The flow for developing a strategy is as follows:

Creation:

An individual or team builds on top of a strategy from a Quasar template or completely from scratch. The developed smart contract is reviewed and audited and can be backtested on the Quasar testnet (Questnet). Once validated, the strategy can be uploaded and instantiated on the Quasar mainnet.

Voting:

The strategy becomes available to Vaults. Strategy developers can propose their strategy to one or more Vaults for integration. Vault governance will allow Vault participants to enter a voting period to decide whether or not a Strategy will benefit their community’s goals. Once a Strategy has passed governance, it can enter its final review before integration.

Integration, Execution, and Termination:

Integration of strategies involves simply upgrading the vault smart contract to point to the newly accepted strategy smart contract on-chain. Any actively managed components in the strategy that an individual or team must monitor should be assigned prior to the execution of the smart contract. Termination of the strategy is the reverse of integration, requiring a vault smart contract upgrade that removes the imported strategy (following whatever governance processes established by the vault).

More technical detail on how to build and interact with strategies will be provied in the Develop section of the docs.