Signal Strategies

Composable Yield Legos

Introduction

The true power of Signals is revealed when you combine them. Below is a library of core strategies that demonstrate how to program your portfolio. Think of these as financial "Legos"—they can be used as-is or combined to build increasingly sophisticated, automated financial systems.


Strategy 1: Standard (Self-Competing)

  • Goal: Maximize growth of a single asset.

  • Mechanism: Set a CDP's Signal to itself.

  • Outcome: All rewards compound back into the same pool, automatically growing your Child balance in that asset. This is the foundational "set-and-forget" growth strategy.


Strategy 2: Concentrated (Diversification)

  • Goal: Systematically build a position in a new asset.

  • Mechanism: Set the Signals of one or more CDPs to a single target CDP.

  • Outcome: You use the yield from your existing assets to automatically and continuously purchase a new asset, dollar-cost-averaging into a new position.


Strategy 3: Hyper (Performance Chasing)

  • Goal: Dynamically allocate capital to the highest-performing asset.

  • Mechanism: Set the Signals of multiple CDPs to the CDP that currently offers the highest APR.

  • Outcome: Your portfolio's yield is constantly redirected to the most productive asset, potentially maximising overall returns (with higher risk).


Strategy 4: Looped (Recycling Yield)

  • Goal: Create a closed-loop system that recycles yield to strengthen your core positions.

  • Mechanism: Set up a circular flow (e.g., CDP A -> CDP B -> CDP C -> CDP A).

  • Outcome: Rewards are continuously cycled, providing compounded exposure to multiple assets within a defined loop and increasing the overall robustness of your portfolio.


Strategy 5: Boosted (LDP Amplification)

  • Goal: Use non-compounding assets to amplify growth in core positions.

  • Mechanism: Direct the yield from Liquid Deposit Pools (LDPs) to one or more CDPs.

  • Outcome: Your core CDPs receive a constant, external stream of yield on top of their own compounding rewards, acting as a permanent booster.



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