Strategies

Every Kestrel token is backed by a strategy — a way of managing underlying holdings and rewards 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, deploying capital into a yield-bearing venue, or using token rewards to buy more underlying tokens.

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.
• Settlement depends on the strategy. Redemptions may settle immediately, require asynchronous processing, or depend on a custody signing service. 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. Authority and custody differ by strategy. Yield Carry operations are constrained by program permissions and limits. Meme Buybacks can hold backing in designated custody wallets, introducing separate custodian-key and service-availability risks.

Live strategies

• 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.

• Meme Buybacks — hold a meme-token receipt while eligible rewards fund buybacks of its underlying token. Learn about backing, fees, wallet custody, referrals, and estimated APY.