> For the complete documentation index, see [llms.txt](https://frost-yield.gitbook.io/frost-yield-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://frost-yield.gitbook.io/frost-yield-docs/strategy-routing-framework.md). # Strategy Routing Framework The Strategy Routing Framework is how Frost Yield organizes supported yield opportunities and connects users to strategies that match different risk preferences. Instead of requiring users to manually evaluate dozens of individual protocols, vaults, APYs, chains, liquidity conditions, and risk factors, Frost Yield is designed to simplify the process through structured routing. The goal of Strategy Routing is not to chase the highest possible APY. The goal is to help users access yield opportunities that better align with their selected risk profile. ### How Strategy Routing Works Frost Yield evaluates supported opportunities across several key categories before they are made available through the protocol. These categories may include: * yield source * expected return range * liquidity conditions * withdrawal or redemption windows * smart contract exposure * counterparty exposure * protocol maturity * historical performance * volatility of returns * sustainability of the yield source * concentration risk * market conditions Each strategy is then assigned a Yield Temperature classification: **Cold, Cool, Warm, or Hot**. This classification helps determine where that strategy may fit inside Frost Yield’s vault system and how it should be presented to users. A strategy with strong liquidity, transparent yield sources, and lower volatility may be routed into a colder category. A strategy with higher return potential, longer redemption windows, or more complex risk factors may be routed into a warmer category. A strategy with aggressive yield potential and elevated risk may be categorized as Hot or restricted from certain vaults entirely. ### Supported Strategy Categories Frost Yield is designed to support multiple types of RWA and stablecoin yield strategies. These may include: ### Stablecoin Lending Stablecoin lending strategies may generate yield from borrower demand across decentralized lending markets or approved lending infrastructure. These strategies can be easier for users to understand because they are typically based on the supply and demand for stablecoin liquidity. However, stablecoin lending still carries risk, including smart contract risk, utilization changes, liquidation risk, protocol risk, and market stress. ### Tokenized Treasury Exposure Tokenized treasury strategies may provide exposure to short-duration government debt, treasury-backed products, or money market-style instruments represented on-chain. These strategies may be categorized as colder yield when they offer stronger transparency, lower volatility, and more predictable income sources. However, tokenized treasury products may still involve custody risk, issuer risk, regulatory risk, redemption risk, and off-chain operational risk. ### Money Market-Style Products Money market-style strategies may seek to provide lower-volatility income through cash-equivalent instruments, treasury exposure, institutional liquidity products, or other conservative yield sources. These strategies may be used in colder or cooler vaults depending on liquidity, transparency, and counterparty structure. ### Private Credit Exposure Private credit strategies may offer higher return potential by providing exposure to off-chain lending, credit markets, or structured credit products. These opportunities may be categorized as Warm or Hot depending on the strength of the borrower base, collateral structure, liquidity, repayment terms, and transparency. Private credit can offer attractive yield, but it also introduces significant risks, including default risk, counterparty risk, valuation risk, legal risk, and limited liquidity. ### Liquidity-Based Yield Liquidity-based strategies may generate returns from providing liquidity to markets, pools, or trading infrastructure. These strategies may produce higher returns, but they can also involve impermanent loss, volatility, pool concentration, incentive risk, and smart contract exposure. Depending on the structure, liquidity-based strategies may be classified as Cool, Warm, or Hot. ### Structured RWA Strategies Structured RWA strategies may combine multiple yield sources, collateral types, maturity windows, or risk layers into a single opportunity. These strategies can be useful for diversification, but they may also be harder for users to evaluate. Frost Yield may classify structured strategies based on transparency, liquidity, complexity, and the quality of the underlying assets. ### Routing Based on User Preference Frost Yield is designed to give users a clearer way to choose how they want to participate. A user looking for more conservative exposure may choose a colder vault or strategy tier. A user looking for balanced exposure may choose a cooler strategy. A user seeking higher return potential may choose warmer opportunities while accepting greater risk. A user seeking aggressive yield may explore hot strategies only after receiving clear risk warnings and understanding that these opportunities carry elevated risk. This gives users more control while still keeping the experience simple. ### Adaptive Routing Yield markets change over time. A strategy that is attractive today may become less attractive tomorrow if liquidity decreases, APY drops, redemption conditions change, counterparty risk increases, or the strategy becomes too concentrated. For this reason, Frost Yield’s routing framework is designed to be adaptive. Strategies may be: * reclassified into a different temperature category * reduced in allocation weight * paused for new deposits * removed from active routing * flagged with elevated risk warnings * moved into Freeze Mode review This helps Frost Yield avoid treating yield opportunities as static products. The protocol is designed to monitor and respond to changing market conditions rather than blindly routing capital based on APY alone. ### Routing Does Not Remove Risk Strategy Routing is designed to improve clarity and structure, not eliminate risk. Every supported strategy carries risk. Even colder strategies may involve smart contract risk, custody risk, issuer risk, liquidity risk, counterparty risk, regulatory risk, or market changes. Frost Yield’s purpose is not to guarantee outcomes. Its purpose is to make strategy selection more transparent, more organized, and more aligned with user risk preferences. ### Why Strategy Routing Matters The crypto yield market is noisy. Users are often shown hundreds of opportunities without a clear way to understand which ones are conservative, balanced, aggressive, sustainable, liquid, or fragile. Frost Yield’s Strategy Routing Framework is designed to reduce that noise. By organizing supported opportunities through risk scoring, temperature categories, and adaptive routing, Frost Yield gives users a more practical way to access real-world yield. The result is a protocol built around a simple idea: > **The best yield is not always the highest yield. It is the yield that best fits the user’s risk profile.** --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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