Introduction

The Murphy Labs team is excited to release the beta version of Strateg. Protocol.

Strateg. Protocol is a decentralized finance (DeFi) protocol that allows users to create, manage, and invest in investment strategies.

The beta is now available on Polygon PoS network and whitelisted users can now use the interface, deploy and invest in strategies.

This is a major milestone for the team and we are grateful for the support of our community.

Strateg. Protocol will forever change the way individuals, protocols, DAOs and companies use DeFi and manage their crypto assets but also the way they integrate DeFi into their portfolio or treasury management and the services provided to their customers.

This beta version, far from being the definitive product, will enable all Strateg. Early Access Pass (SBT) owners come, use and give their feedback on this first version of the protocol, before a V1 release in the months following the completion of the protocol contract audits.

In this article, we will describe in more details the technical architecture we've built, the different features available for this version and the fee structure that rewards strategists.

Strateg Architecture

The Strateg. Protocol is composed of four main components:

• Core Protocol: The core protocol is responsible for managing the overall operation of Strateg. It includes functions for creating, configuring and managing strategies.

• Blocks: Blocks are standardized smart contracts that execute actions on specific DeFi protocols. For example, a block could be used to deposit funds into a liquidity pool or to borrow tokens from a lending protocol.

• Operators: Operators are responsible for managing operations related to deployed strategies.

• Portal: Portal is a crosschain swap & bridge meta aggregator module implemented on top of the core protocol that allows users to invest in any strategy from any supported blockchain and with any aggregated token, simplifying the user’s journey.

Core Protocol

As we operate in DeFi, it's crucial to remember that the vaults used to create strategies are immutable. At no time does a strategist or Strateg. itself can access users' funds or make any changes to the strategy once deployed.

Strateg. Protocol’ vaults use ERC-4626, a proposed Ethereum standard for tokenized vaults, aiming to improve composability, security, and efficiency. It provides a standard framework for yield-bearing vaults that represent the shares of the  underlying strategy.

As explained below, several strategy parameters can be adjusted, without risk for users but allowing specific strategy management for strategists.

As explained below, several strategy parameters can be added and adjusted after the creation of the strategy, without risk for users but allowing specific strategy management for strategists.

Strategists can change the following strategy parameters:

• Fees: Manage performance fees (strategist & automation fees)

• Timelock: Add a time lock for all the funds deposited in the strategy,

• Addresses whitelist: Choose who can invest in your strategy (Community members only,  KYC’d users, specific token holders etc)

• Minimum/Maximum deposit: Choose minimum & maximum amount that each user can invest or the total asset that can be invested in the strategy.

• Buffer size: Adapt the size of the buffer in order to maximize user earnings and optimize the management of deposit/withdrawal in the strategy.

Ultimately, all these parameters, as well as strategist fees can be edited after the creation of the strategy in a tokenized form thanks to a semi-fungible token (ERC-3525). Semi-fungible tokens (SFT) can be seens as bank bills, all $10 bills have the same values ​​but each bill has a specific serial number.

When a strategist creates a strategy, he receives an ERC-3525 (transferable) with the ID 1. The owner of the ID 1 (only) controls all parameters of the strategy and initially receives 100% of strategist fees. However, a strategist is able to share any percentage of strategist fees with any address. Each address whose strategist fees are shared will receive a derived SFT (ID 2, 3, 4, etc...) from the primary one (ID 1).

This offers dynamic control over these parameters empowering strategists to implement features like :

• Collaborative Strategies

• Community incentives

• Charitable giving

Blocks

Blocks are standardized smart-contracts which execute a specific action on a given protocol.

For example, actions such as deposit, withdraw, stake or borrow are typical actions that will be represented in block form, allowing the action to be specifically executed when the strategist includes it in a strategy.

A block is composed of 4 functions:

• enter (execute function)

• exit (execute inv function)

• oracle enter (simulation of a state at a given time)

• oracle exit (simulation of a state at a given time)

It is the succession and order of actions defined by these blocks that will generate a strategy and finally be deployed in the form of an ERC-4626 vault.

Operators

Operators play a central role in the automated management of complex strategies. They manage the strategy according to the actions (blocks) selected by the strategist to maintain each strategy.

Operators are offchain agents currently run by the Murphy Labs team. R&D has already been initiated to decentralize this part of the protocol.

Automated management for strategies involving claims, harvests, swaps, rebalances of the strategy are handled by operators.

The allocation of gas to operators is an initial parameter that the strategist must establish when building his strategy, which is used by operators to manage the strategy. Operators don't need to manage gas allocation to the strategy, which is handled by strategy automation fees, or by the strategist if the strategy doesn’t generate enough revenues to cover automations.

Portal

Anyone already involved with DeFi knows how complex and time-consuming switching chains and assets can be. Portal really simplifies interactions by enabling users to bridge, swap and deposit in a single action.

Portal acts as a crosschain swap & bridge meta aggregator module implemented on top of the core protocol that aggregate DeFi protocols such as LiFi or deBridge to provide the most user-friendly experience and thus implement what is known as chain abstraction.

Switching from one strategy to another, available on different blockchains and with different tokens, is easily performed without even the need for gas on the destination chain.

It has never been so simple for each user to navigate between chains and tokens in order to jump from strategy to another in search of the best yield opportunities.

dApp Structure

Dashboard Page

It includes user information, such as the logged-in address, the biography, the links to their social networks including their Lens profile, the strategies they have created and the assets held in their portfolio.

Numerous other data will become available over time, such as data on profits generated, graphs on the distribution of assets in other strategies, and much more.

Create

Here you'll find all the tools you need to create a strategy. The blocks available to create your strategy, and a spreadsheet to build your dream strategy using drag and drop.

The protocols available as blocks for this launch will be Aave, Balancer, Aura, Stargate, Curve, Convex and the Strateg. Swap Module (powered by LiFi and deBridge). More protocols will be added over time.

Invest

This page lists the strategies in which it is possible to invest. You choose which crypto to invest in the strategy of your choice. It allows you to invest from any blockchain to any strategy, and with any asset, whether or not you have gas available on the destination chain.

Strateg. is also the only dApp where chain abstraction meets gas abstraction to become yield abstraction. Users are able to use USDC as gas to pay transaction fees from any supported chain (thanks to Gelato 1Balance). Please note that it is still fully possible to use Strateg with each chain's native token.

Fee Structure

The fee structure we've implemented can be explained using the following diagram. There are 3 types of performance fees that will be deducted and distributed to the different players: the strategist, the protocol and the strategy automation.

This scheme is the same for each strategy deployed. Each fee is customizable by the strategy creator at the time of deployment.

Strategist Fees

The whole point of becoming a strategist and offering your own strategies to the community is that it will become possible for everyone to monetize their knowledge and offer it to other users for profit.

With Strateg, there's no deposit fee or withdrawal fee.

Thanks to the semi-fungible token (ERC-3525), strategist fees are tokenized in the form of a semi-fungible token. Each strategist is able to determine the strategist fee that will be taken from the strategy's performance, but also who will receive the profits generated at the end.

In fact, it's possible to split the profits generated between different addresses, by splitting the ERC-3525 in multiple tokens, as the strategist sees fit. Airdrop to the community, sharing between members of the same group involved in strategy development, a DAO service provider who has built a strategy for a protocol taking a percentage of strategist fees as revenues for him, charitable action - anything is possible.

Protocol Fees

Protocol fees are fixed and are set up to 12% for now but this rate may vary in the future. Those fees will be collected from each strategy, swapped to USDC and sent to the fee collector address for further distribution to different actors involved in the protocol.

Automation Fees

Monitoring strategies requires operators, which are offchain agents.Operators initiate actions such as harvesting or rebalancing leveraged positions, and consume gas in order to be executed.

To cover these operational costs, the strategist is asked to supply this gas when the strategy is deployed (SOPT). A performance fee called automation fee (% chosen by the strategist) is also charged to ensure continuity of service.

If the gas reserve is too low (e.g. not enough yields), the strategy will use the SOPT deposited by the strategist. If there is no gas left from royalties or from the SOPT reserve, the strategist or any user can deposit SOPT so that the strategy automatically reboots.. It means that the funds deployed in the strategy will be withdrawn and deposited in the buffer. Once replenished, the strategy restarts on its own after a few minutes.

To make sure you don't miss out on the Strateg experience, Strateg will sponsor the gas needed to manage the strategies on V1, thanks to donations collected via Mirror and Lens articles.

Conclusion

To become a user of this beta version, you must have the "Strateg. Early Pass" SBT on your wallet (we have sent it to all eligible addresses) and you must also mint this article on the same address as the SBT.

Please note that you won't be able to share your strategies with others for the time being, for security reasons (audits underway) and until V1 is released.

For those lucky enough to be able to use this beta version, bear in mind that we're battle testing the core protocol with you, to see if all the basic operations regarding vault creation, strategy automation, fee routing, global infrastructure load and the share mechanism are fully operational.

The number of blocks corresponding to the number of protocols in this beta is also limited, but all your favorite protocols will of course be listed as you go along.

This version is currently deployed on the Polygon PoS Network only, but we'll keep our promises to deploy Strateg. on as many EVM chains as possible within a reasonable timeframe.

Once again, we insist on the fact that this is a beta test version, you use Strateg. at your own risk. Despite all the care we've taken in developing Strateg, audits are still being carried out, so we strongly advise you to use it with reasonable amounts in the order of a few dollars to a few tens of dollars.

The team cannot be held responsible in any way for any losses that may occur during this testing phase.

DEGENS! STAY CALM!

This beta version is likely to change before V1. We may also have to redeploy contracts during this test period. Updates and improvements will be made throughout the test phase.

Your feedback is essential if we are to provide you with the best possible product when it is released to the public.

We'll be holding public AMAs to answer questions and clarify concepts and usage keys in the coming weeks.

In the meantime, we hope you'll enjoy using Strateg. as much as we've enjoyed bringing you this first iteration.

Although incomplete, we hope that it will already enable you to express your creativity by deploying simple and effective strategies.

Create, Share, Earn, STRATEGISTS!!!

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ACCESS THE BETA NOW ON

https://app.strateg.io/