Allocation Strategies

An Allocation Strategy is the composition layer of Railnet. Once you have multiple yield sources — Advanced Strategies, standard protocol adapters, or both — you compose them into a single managed allocation with automated deposit and redeem routing, sector-based accounting, and on-chain guardrails.

When to use an Allocation Strategy

You need an Allocation Strategy when you want to:

Compose multiple yield sources into a single product — combine lending protocols, staking, RWA, and Advanced Strategies under one allocation
Automate capital routing — configurable deposit and redeem priority queues distribute capital across sources without manual intervention
Build fund-of-funds — include Advanced Strategies as sub-vehicles alongside standard protocol adapters, creating a portfolio that mixes custom execution with established DeFi yield
Distribute through Conduits — a single Allocation Strategy can back multiple Conduits, each with their own fees, compliance rules, and branded shares

How it works

When you deploy an Allocation Strategy, you get six interconnected contracts:

Contract	Purpose
MultiVehicle	Main strategy contract. Users deposit and receive ERC-20 shares; it owns the STEAM lifecycle entry points.
VehicleManager	Authorizes and configures yield sources, manages thresholds, and owns the redeem queue operations.
SectorAccountingEngine	Tracks every asset and share across sectors with double-entry bookkeeping.
QueueStrategyEngine	Defines deposit and redeem priority queues for automated allocation.
SubQueryEngine	Creates and advances the STEAM sub-queries on each yield source, including ephemeral accounting for in-flight value.
QueryRedeemQueue	Handles asynchronous redemption processing, matching demands against liquidity in FIFO order.

Assets flow through distinct sectors — idle base assets in AVAILABLE, liquidity you deliberately earmark in RESERVED, deployed yield-source shares in ALLOCATION, plus a staging sector per authorized yield source and temporary query sectors for recoveries. Every movement follows double-entry bookkeeping, giving you real-time NAV without off-chain reconciliation.

Allocation Strategy vs Advanced Strategy

	Allocation Strategy	Advanced Strategy
Purpose	Compose multiple yield sources into one managed allocation	Execute custom logic on any protocol with full flexibility
Contract	MultiVehicle	Specialized Vehicle (Safe + Zodiac Roles)
Best for	Diversified portfolios, automated routing, fund-of-funds	Standalone strategies, bespoke DeFi execution, RWA operations
Guardrails	Role-based access control (EAC)	On-chain policy engine (Zodiac Roles Modifier v2)
Typical journey	Built after you have multiple strategies or yield sources to compose	Where most asset managers start

The two are composable: an Advanced Strategy can serve as a sub-vehicle inside an Allocation Strategy, and both can be distributed to users via Conduits.

Guides

Create an Allocation Strategy

Deploy the Allocation Strategy ecosystem — EAC, Fee Manager, and MultiVehicle — in a single transaction.

Guardrails

Understand the trust boundary between platforms and asset managers.

Operate an Allocation Strategy

Manage allocations, rebalance across yield sources, and handle day-to-day operations.

Risk management

Evaluate yield sources, manage concentration risk, and handle emergencies.

Getting started