What is a Strategy Provider?

A Strategy Provider is responsible for providing instructions for a cellar to execute (generally a data-science plus data-engineering team). Strategy providers earn a management fee as laid out in the Tokenomics section.

For example, a cellar might aim to dynamically invest in the most profitable Aave cellar at any given time. In this case, the cellar might invest all funds in the Aave USDC-vault. However, at a later date, it might be more profitable to invest in the Aave DAI-vault. In this case, the strategy provider can send an instruction to remove the USDC, swap it for DAI, and then invest that DAI into the Aave DAI-vault, generating more profits.

How do I get started as a Strategy Provider?

We are evaluating the path where a Strategy Provider may submit a request to become authorized for validators to accept their cellar inputs (via the steward endpoint).

Once a Strategy Provider is approved for a new cellar, they can start sending recommendations to validators which will execute a strategy for a particular cellar. Alternatively, if a strategy provider wants to send recommendations for a current cellar, they can illustrate how their recommendations are more beneficial than current strategy recommendations from alternative strategy providers, and as such, validators may start following their recommendations more often. In this way, they can gain a share of which recommendations are actually executed in a competitive marketplace of strategy providers.

How can a Strategy Provider rebalance its Cellar to optimize profits?

Strategy Provider submit the commands to the validators. Validators then perform a series of checks on these commands and submit it to the rest of the validators to vote on whether the command should be executed or not. If the command reaches quorum, it is then relayed to the cellar for execution.

What fees do I earn as a Strategy Provider?

They currently earn a management fee as outlined in the Tokenomics section. In that section, the Strategy Provider role is combining the financial strategist and data-science team that write the cellar.

Can I contribute to a Cellar even if I’m not the Strategy Provider?

Yes. If you have investment ideas for a Cellar that has already been created, we encourage you to contact the Strategy Provider through the Cellar portal. Should the Strategy Provider want to work with you to realize those ideas, they can designate you as a Cellar Strategist for that Cellar and apportion a percentage of their fees as compensation.