Strategies

Every Kestrel token is backed by a strategy — a set of on-chain positions the protocol runs on your behalf. This page explains what all Kestrel strategies have in common. Each individual strategy then has its own page with its specific mechanics and risks.

What a strategy is

A strategy is a repeatable, rules-based way of putting a deposited asset to work on-chain. When you buy a Kestrel token you deposit an underlying asset, and the protocol allocates that asset according to the strategy — for example supplying it to a lending market, borrowing against it, or deploying capital into a yield-bearing venue.

You never manage those positions yourself. You hold one token; the protocol's automated services run the strategy behind it.

What every strategy shares

Regardless of what a strategy does internally, the user-facing model is the same:

• You hold a token, not a position. The token is your claim on the strategy's holdings. You don't manage venues, positions, or operational steps.
• The count of tokens you hold doesn't grow. Strategy value accrues into the token's redemption price instead of minting you more tokens. See How It Works.
• Value can go up or down. A token's price reflects the strategy's holdings, net of fees. Positive performance is never guaranteed. See Risks.
• You can sell any time. Redemptions settle instantly when readily-available liquidity exists, or asynchronously when the strategy needs to free capital. See Redemptions.
• Fees are configured per token. Mint, burn, and performance fees are set on-chain per strategy. See Fees.

How strategies are run

Kestrel operates automated services that manage each strategy by calling protocol instructions — refreshing on-chain accounting and prices, deploying idle collateral, rebalancing positions, monitoring position health, and unwinding positions when liquidity is needed. These services act only through the permissions and limits enforced by the smart contracts; they cannot move funds outside those rules.

Live strategies

• Long Yield Carry — hold a risk asset (SOL, BTC, and others) while earning a delta-neutral carry yield sourced by borrowing against that asset and deploying the debt into a stable yielding venue.