YIELD_BRIDGE.md

Socket Yield Bridge

Sync

• Sync: Used to push the total earnings from strategy to app chain for distribution.

Rebalance

• Rebalance: Process of depositing collected funds to Strategy, maintaining idle and invested fund ratio and withdrawing if the ratio exceeds the limits.

• Rebalance delay: delay after which the funds should be pushed to strategy to batch the transfer and save gas

Removed mint-redeem from yield vault

• As we don't want to use shares on the vault chains, the related operations are removed from here and only necessary logic is picked

• Cases:

  • what if strategy faces loss and total funds reduce on non app chain? As tokens are rebasing, it will reduce the amount in all wallets

App chain:

• controller

  • limit controller
  • erc4626 without external asset (only withdraw and redeem possible)
    • rebase token

• vault

  • limit controller

Known issue:

• If yield decreases and tokens are yet to be minted, it will create a hole and will have to be paid back by bridge owners.

App chain:

• Rebasing Token is connected to a yield bridge controller with yield bridge token hook