Developers > Best Yield > Architecture
The main smart contracts used by Idle are the following:
IdleToken– holds pooled funds of all users for a specific asset and issues ERC20 shares of the pool (IdleTokens) for each deposit.
IdleFuse– wrappers contract used by
IdleTokento interact with the lending protocols implemented
Idle Rebalancer automatically analyses supply rate functions across integrated protocols and total funds in the pool to constantly rebalance capital across any number of protocols to earn the highest interest rate possible with very high precision. When a new allocation can improve the aggregated APY of an IdleTokens, the Rebalancer submits new allocations to the contract.
During the rebalance process,
IdleTokencontracts check if the new allocation is different and eventually accept it. This triggers a rebalance which mints or redeem the pooled funds on different lending protocols via the dedicated wrappers (
All Idle strategies use the same set of smart contracts, but each allocation uses a different instance of those contracts.