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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.

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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

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How it works

When you deploy an Allocation Strategy, you get five interconnected contracts:
ContractPurpose
MultiVehicleMain strategy contract. Users deposit and receive ERC-20 shares.
Sector Accounting EngineTracks all asset allocations across yield sources and idle sectors.
Queue Strategy EngineDefines deposit and redeem priority queues for automated allocation.
Sub Query EngineExecutes deposit and redeem queries on yield sources.
Query Redeem QueueHandles asynchronous redemption processing.
Assets flow through distinct sectors — idle capital in the deposit sector, pending and active allocations per yield source, and assets awaiting user claims in the redeem sector. Every movement follows double-entry bookkeeping, giving you real-time NAV without off-chain reconciliation.

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Allocation Strategy vs Advanced Strategy

Allocation StrategyAdvanced Strategy
PurposeCompose multiple yield sources into one managed allocationExecute custom logic on any protocol with full flexibility
ContractMultiVehicleSpecialized Vehicle (Safe + Zodiac Roles)
Best forDiversified portfolios, automated routing, fund-of-fundsStandalone strategies, bespoke DeFi execution, RWA operations
GuardrailsRole-based access control (EAC)On-chain policy engine (Zodiac Roles Modifier v2)
Typical journeyBuilt after you have multiple strategies or yield sources to composeWhere 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.

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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.