Architecture
Developers > Yield Tranches > Architecture
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Developers > Yield Tranches > Architecture
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The main contract used by users is called IdleCDO
which allows depositing the underlying and mint tranche tokens (ERC-20), either AA or BB, and redeeming principal and interest from it.
YTs are also ERC-4626 compliant! Deployed wrappers can be found
The IdleCDO contract pools users' funds together and uses IIdleCDOStrategy
as a proxy for interacting with the underlying DeFi protocol to deposit funds and collect interest and rewards.
Governance tokens collected as rewards are not redistributed to users directly in the IdleCDO contract but rather sold to the market (harvest
method) and the underlying reinvested in the downstream lending provider where possible.
The codebase and a general overview of the architecture can be found at .
These are the core contracts used:
On top of these, all the strategies (IIdleCDOStrategy
) currently used can be found here .