Building a Yield Aggregator: Strategy Contracts Explained

So, in the world of yield aggregators, strategy contracts are super important for keeping everything running smoothly. So, if you're getting into yield farming or considering creating your own aggregator, let me give you a quick rundown on strategy contracts. Here’s what you need to know!

What is a Strategy Contract?

So, a strategy contract is kind of like a smart contract that kicks in to automate how you earn yields from different DeFi protocols. It's a handy tool that takes the hassle out of managing your investments. It figures out the best way to handle your assets so you can get the most bang for your buck. Just picture it as the brains of the whole operation, constantly making smart choices to get the most out of your investments in real-time.

Key Features of Strategy Contracts

• Automation: You won’t have to keep an eye on your investments all the time. The strategy contract takes care of everything for you.
• Optimization: It takes a good look at various protocols and picks out the top contenders for generating yield.
• Flexibility: You have the awesome ability to tweak your strategies whenever the market shifts or if you just want to go in a different direction.

Why Are Strategy Contracts Important?

Strategy contracts are super important because they let you boost your returns without needing to constantly watch your screens all day, every day. They really give you a solid edge in the super-fast world of DeFi, where chances can vanish just as quickly as they pop up.

Here are a few reasons why they're important:

1. Efficiency: It automatically shifts assets to the places where they're getting the best returns. 2. Risk Management: It's all about mixing things up to help reduce possible losses. 3. User Experience: It simplifies yield farming so that even folks who aren’t super tech-savvy can get in on the action.

How Do Strategy Contracts Work?

Let me break it down for you and give you a straightforward look at how strategy contracts work:

1. Deposit: You'll start by putting your assets into the strategy contract. 2. Yield Farming: So, the contract dives into various DeFi protocols to start racking up those yields. 3. Reinvestment: Whenever you earn some returns, those gains are automatically reinvested. This helps to grow your returns even more over time! 4. Withdrawals: Feel free to take out your initial deposit along with any earnings whenever you like!

Example: Basic Workflow

Let me give you a quick rundown of what a usual workflow for a strategy contract looks like:

User Deposits Assets → Contract Identifies Best Yield Opportunities → Assets Yield Farming → Earnings Compounded → User Withdraws

Conclusion

To put it simply, strategy contracts are a key component in putting together a yield aggregator. They make it easier to earn yields and really boost your potential returns. No matter if you're a newbie or trying to level up your DeFi game, grasping the ins and outs of strategy contracts is definitely going to be a big plus on your path.

If you're looking for more in-depth info on building yield aggregators and strategy contracts, don't hesitate to dive into these resources:

• Getting the Lowdown on DeFi Yield Farming. Check out our guide on Strategy Contract Best Practices. It's packed with useful tips to help you navigate the ins and outs of contract strategy!

Happy farming!

Pain (specific technical headache)

Hey there! So, your vaults are all set for you to make deposits and withdrawals, which is great. But honestly, when it comes to the “strategy” code, it really feels like it's just a bit of a gamble--like you're just crossing your fingers and hoping for the best! Whenever you want to bring a new farm into the mix, it always feels like you need to whip up some custom glue. It’s a hassle dealing with stuff like swap routers, chef interfaces, debt accounting, and don’t even get me started on that pesky off-by-one share calculation! Integration teams often find themselves bogged down for weeks trying to create these adapters, and even then, they can still overlook those tricky edge cases, like redemption rounding and asynchronous exits. It's a real headache!

Harvest scheduling? Honestly, it’s pretty straightforward. So, when public harvests get squeezed in, you end up losing some basis points to MEV. As a result, those fees can really shoot up. It gets even trickier--if the timing of the harvest is off, new depositors can swoop in and essentially "snatch" the interest that long-time depositors have built up, especially if you haven't figured out a good way to secure your profits.

• And let's not forget about those oracle and liquidity assumptions that sometimes just fall apart. So, when you’re talking about a 10-minute TWAP (Time-Weighted Average Price) on a pool that has a cardinality of just 1, it’s not really doing its job as a TWAP. The price protection you’re hoping for could end up being inconsistent when there’s a lot of volatility. Even worse, it might become easy to manipulate since the pool hasn't been able to build up its observation buffer. It's definitely something to keep in mind! If you want to dive deeper, feel free to take a look at the Uniswap docs. They’ve got all the info you need!
• Hey, let’s dive into something called composability debt. If you skip on implementing ERC-4626 and its cool async/multi-asset extensions, your partners are going to be stuck dealing with a bunch of one-off adapters. That’s a hassle, and it really puts a damper on how many listings they can have with different integrators. So, looking ahead to 2025-2026, it looks like vault ecosystems are gearing up to adopt ERC-4626 as the go-to standard. They're also planning to use ERC-7540 for asynchronous flows--think things like Liquid Staking Tokens (LSTs), Liquidity Reserve Tokens (LRTs), and Real World Assets (RWAs). Plus, they’ll be tapping into ERC-7575 to create those multi-asset entry points we’ve been hearing about. Exciting times ahead! For more details, check out ethereum.org. They’ve got a ton of great info there!
• And then there's the whole thing about roadmap drift. The operations teams are really excited about Chainlink Automation or Gelato, while the product teams have their eyes set on Permit2 to manage approvals. On the infrastructure side, folks are diving into Flashbots or MEV-Blocker options. And when it comes to security, they’re all about those Yearn-style tokenized strategies that have that immutable logic. It's a busy time with plenty of interesting stuff happening across the board! When everyone's pulling in different directions, it’s no surprise that things start to unravel. Deadlines get pushed back, and what was supposed to be a straightforward audit ends up turning into a whole rewrite instead of just a quick confirmation. If you’re looking for more info, definitely take a peek at the Chainlink docs. They’ve got some great insights that can really help!

Agitation (why this risk is expensive)

• If you miss out on integrations, you're also missing out on total value locked (TVL). In the world after ERC-4626, people are starting to expect that vaults will be super user-friendly and just work seamlessly right from the get-go. Every week, teams are launching tons of tokenized vaults, and allocators are definitely on the lookout for the ones that really meet the mark. If your vaults aren't set up on 4626, it’s basically like you’re invisible in the aggregator listings. (blockworks.co).
• **Gas fees really eat into those competitive APYs. Let’s be real--stuff like storage writes, those never-ending loops, and all those extra approvals can really rack up the gas fees, sometimes costing users between 60 and 100k with just one flow. When it's time to harvest, that's just more fuel going to waste. When you’re looking at things over a quarter, this can really shave off 20 to 40 basis points from your net APY. This especially hits hard on Layer 2s where the usage is super high. Meanwhile, your competitors are just cashing in on those rewards like it’s no big deal! (alchemy.com).
• You know, MEV and those botched harvests really end up costing us. It's like getting hit with negative carry. When the public mempool gets busy, transactions can end up getting sandwiched or even rolled back. You end up shelling out for those failed tries, and it really starts to weigh you down with that stale compounding. If you start using MEV-aware flows with private builders and refunds, you can totally change the game when it comes to harvesting. (docs.flashbots.net).
• If you're using async exits like LST/LRT or EigenLayer strategies and you're not sticking to ERC-7540 semantics, it can really mess things up. You might end up with claims that are stuck, and that can definitely make for a frustrating user experience. Hey there! So, as those slashing penalties start to take effect across AVSs, it’s super important to keep your risk management in check. Make sure you’re considering those extra penalties on top of everything else and any potential delays when it comes to redemptions. Just a little heads-up to keep in mind! Honestly, that “simple” exit queue you’ve got going just isn’t doing the trick anymore. (eips.ethereum.org).
• **An Oracle misconfiguration is something that can sneak up on you. Hey there! Just a quick heads-up: if you're not staying on top of Uniswap v3’s observation cardinality and figuring out those TWAP/TWAL calculations properly, you could be in for a rough ride. A single whale could easily mess with your rebalancer, leading to some pretty bad fills or even freezing those redemptions. So, keep an eye on things! Security reviewers are likely to spot this pretty quickly, so it could slow down the shipping process. (docs.uniswap.org).

Solution (7Block’s methodology that ties code to ROI)

At 7Block, we develop strategic systems that focus on high standards, keep an eye on MEV, and are all set for automation. After that, we back everything up with actual GTM metrics so you can really see the value in what we’re doing. Here’s our playbook:.

1) Architecture: Vaults and Strategies the Market Can Integrate

• ERC-4626 Vaults with Strategy Debt Allocation.
  Alright, let me break it down for you: allocator vaults are basically responsible for minting shares and establishing debt ceilings for various strategies. These strategies are essentially what we call ERC-4626 “tokenized strategies,” similar to what you’d find in Yearn V3. This awesome setup lets you keep your logic separate, gives you multiple attachment points, and makes it super easy to combine different elements. So, what’s the bottom line? We ended up with a more compact adapter surface, strategies that we can easily test on their own, and a consistent approach to accounting. If you want to dive into the nitty-gritty, you can find all the details right here. Happy exploring!
• Built-in Async and Multi-Asset Support. If you're working with LST/LRT and RWA flows, it's a good idea to set up the ERC‑7540 request and claim lifecycles--basically, you’ll have stages like pending and claimable to keep things organized. And hey, if your users might need to cancel requests, it could be worth looking into ERC‑7887 for those cancellation options. Just a little something to think about! So, if you're working with LP tokens or any sort of multi-entry assets, the ERC-7575 standard is a great option. It lets you use just one share token to keep track of multiple asset entry points, or as I like to call them, “pipes.” It really simplifies things! This method keeps the integrators happy and really simplifies the process of troubleshooting exits. If you're interested, you can check out more details about it here.
• **Permit‑Aware UX. Integrating Uniswap Permit2 is a total game changer when it comes to capped, time-limited approvals. It really helps simplify on-chain approvals and makes it easier to manage revocations too. Hey there, power users and router enthusiasts (shoutout to Universal Router!), you’re going to love this. Permit2 really streamlines the whole process, cutting down on those annoying clicks and failures. Plus, it’s a game-changer for boosting your first-deposit conversions. You’ll definitely notice the difference! Check it out here.

2) Strategy Contract Patterns That Don’t Leak Value

• Profit Locking and Harvest-on-Deposit: Think of it like the approaches used by Beefy and Yearn. You can secure those profits for a certain number of blocks or go ahead and harvest whenever someone makes a deposit. It’s a smart way to keep things rolling! This way, you can keep latecomers from swooping in and taking your yield. Make sure you keep track of your allowances and have those “panic” hooks handy. That way, if you ever need to, you can quickly pull your money out of third-party farms without any hassle. If you want to dive deeper into the details, just click here. It’s all laid out for you!
• Deterministic Accounting: Make sure you always use convertToAssets and convertToShares--keep it consistent! Don't even think about mixing shadow accounting with the math behind ERC-4626--it's a recipe for disaster! It's a good idea to always use the preview and max functions. That way, you can keep things consistent and predictable for those integrators out there. So, when you're working with async stuff, just keep in mind to stick to the ERC-7540 overrides. And don’t forget to revert previews whenever you need to! If you want to dive deeper into the topic, just click here for more info!
• Oracle Discipline: So, when you're connecting, don't forget to increase the Uniswap v3 observation slots--like, maybe add an extra 50 or so. It's way better to calculate TWAP/TWAL with observe() instead of just depending on single observations. Trust me, it makes a big difference! If something seems off, it should definitely shut down for safety. Make sure you jot down the parameters for each pool too, okay? If you want to dive deeper into the details, check out this link here. It’s got all the info you need!

3) MEV‑Aware Execution and Automation

• Private Order Flow for Harvests and Big Rebalances. Hey there! Just a quick tip for routing your harvest transactions: you might want to give Flashbots Protect RPC a shot, especially in fast mode. This way, you can really take advantage of that multi-builder distribution. Happy harvesting! This way, you can avoid those annoying sandwiches and grab backrun rebates whenever you get the chance! This definitely helps reduce “MEV leakage” and saves you from wasting gas on transactions that don’t go through. Take a look at this link: (docs.flashbots.net). It's definitely worth checking out!
• **Deterministic Schedulers. For all your maintenance needs, check out Chainlink Automation v2! You can definitely use 1+ for tasks that depend on time or if you need any specific custom logic. Hey, just a quick tip: make sure your LINK buffers are set up nicely and that the checkUpkeep conditions don’t keep changing unexpectedly. That’ll help keep things running smoothly! If you’re dealing with off-chain conditions--like subgraphs or LRT APYs--then Gelato Functions are definitely the way to go. They’ll really help you tackle those issues! We've got everything neatly documented for you--whether it’s OPEX, fee schedules, gas limits, or funding runways, it's all laid out and easy to find. Check it out right here: (docs.chain.link).

4) Gas Optimization Where It Actually Pays Off

If you want to make the most of your gas, try reducing the amount of storage writes you do. So, when you're working with things like this, try using pack flags. They can really help! Also, don’t forget about using immutables or constant addresses--they’re super handy. Mappings can be a big help too, so lean into those when you can. And hey, if there's data you find yourself using a lot, be sure to cache it. It’ll save you some time and hassle down the road! Oh, and just a quick heads-up: it’s best to only skip the checks in loops where the math is really straightforward. Yul really shines when it comes to those tricky inner loops, so make sure you throw in some tests and comments while you're at it. It’ll definitely help keep things clear and efficient! We typically kick things off by using the solc IR optimizer. From there, we try to strike a good balance between keeping the code size in check and optimizing for runtime gas efficiency. If you're curious to dive deeper, take a look at this link for more info on Alchemy. It's got some great insights!

Hey, don't forget to check out the latest compiler features! Just a heads up, make sure you're using Solidity version 0 or higher. 8. It's pretty cool to have transient storage support at 28, especially when it comes to managing those intra-transaction flags. It really makes things easier! It’s definitely worth syncing this up with any upgrades in the optimizer. Hey there! So, if you’re considering giving the experimental EOF backend a shot in version 0, 8. Hey, just a heads up--go ahead and test it out in staging first! Let’s hold off on pushing it to the mainnet until the target EVM version is all set. Thanks! If you want to dive deeper into this, check out the Solidity blog. There's a lot of great info there!

5) Security Process Aligned to DeFi Reality

• Guard Rails: Let’s dive into the CEI pattern! When things start to feel a little wobbly, we’ll lean on ReentrancyGuard to keep us steady. For managing fees, we’ll go with pull payments - it’s just cleaner that way. And instead of using tx.origin, we’ll set up access controls with roles. It’s all about keeping things secure and organized! We've also built in some straightforward pause and panic options into our strategies. Check it out here.
• Testing Stack: We’ve built a pretty reliable testing setup using Foundry for our unit tests and invariants. For property fuzzing, we’re using Echidna, which covers those ERC-4626 properties nicely. Plus, we've got Slither CI in the mix to keep tabs on upgradeability checks. It’s a comprehensive approach to ensure everything runs smoothly! We also rely on GitHub Actions to keep us updated on any new findings. This changes the way we think about security; it's no longer just something we do when there’s an event happening--it's now a regular part of our routine. You can check out more details right over here.
• Audit-Ready Documentation: We’ve put together some handy state diagrams for the ERC‑7540 flows, fine-tuned the oracle cardinality options to get them just right, set up MEV routing, and compiled keeper funding runbooks. All of this really helps to speed up the audit process and reduces the chances of any hiccups on launch day. If you want to dive deeper, check out this guide for more details!

Alright, so here’s a straightforward skeleton you can use for a production-ready ERC-4626 “strategy vault.” This setup is all about putting a single asset to good use by farming it externally, while still managing to harvest through a private flow. It’s a nice little framework to get you started! So, this setup is based on the idea that there's an Allocator Vault that's handling the debt ceilings. It's also the one taking care of the deposit and withdrawal requests for the strategy. Check out these important features:

• 4626 math only
• Harvest-on-deposit option
• So, let’s talk about the Uniswap v3 TWAP guard.
• Chainlink Automation compatibility

// SPDX-License-Identifier: AGPL-3.0
pragma solidity ^0.8.28;

import {ERC4626, ERC20, Math} from "solmate/mixins/ERC4626.sol";
import {ReentrancyGuard} from "@openzeppelin/contracts/security/ReentrancyGuard.sol";
import {AccessControl} from "@openzeppelin/contracts/access/AccessControl.sol";

interface IChef { function deposit(uint256 pid, uint256 amt) external; function withdraw(uint256 pid, uint256 amt) external; function pendingReward(uint256 pid, address user) external view returns (uint256); }
interface IRouter { function swapExactTokensForTokens(uint amtIn, uint amtOutMin, address[] calldata path, address to, uint deadline) external returns (uint[] memory); }
interface IUniswapV3Oracle { function observe(uint32[] calldata secondsAgos) external view returns (int56[] memory, uint160[] memory); }

contract TokenizedStrategy is ERC4626, AccessControl, ReentrancyGuard {
    bytes32 public constant ALLOCATOR_ROLE = keccak256("ALLOCATOR_ROLE");
    bytes32 public constant KEEPER_ROLE    = keccak256("KEEPER_ROLE");

    IChef   public immutable chef;
    IRouter public immutable router;
    IUniswapV3Oracle public immutable oracle;
    uint256 public immutable pid;

    // Config
    bool    public harvestOnDeposit;
    uint32  public twapWindow = 600; // seconds
    uint16  public minCardinality = 50; // grow target for v3 oracle ring buffer
    uint256 public slippageBps = 50; // 0.5%

    // Accounting -- no shadow balances; rely on ERC4626’s totalAssets()
    constructor(
        ERC20 asset_,
        address chef_,
        uint256 pid_,
        address router_,
        address oracle_
    ) ERC4626(asset_, string(abi.encodePacked("strat-", asset_.symbol())), string(abi.encodePacked("s", asset_.symbol()))) {
        chef = IChef(chef_); pid = pid_;
        router = IRouter(router_); oracle = IUniswapV3Oracle(oracle_);
        _grantRole(DEFAULT_ADMIN_ROLE, msg.sender);
        _grantRole(ALLOCATOR_ROLE, msg.sender);
        _grantRole(KEEPER_ROLE, msg.sender);
        asset_.approve(address(chef), type(uint256).max);
    }

    // Vault-facing
    function beforeDeposit() external nonReentrant onlyRole(ALLOCATOR_ROLE) {
        if (harvestOnDeposit) _harvestInternal();
    }

    function afterDeposit(uint256 assets, uint256) internal override nonReentrant {
        // push funds to farm
        chef.deposit(pid, assets);
    }

    function beforeWithdraw(uint256 assets, uint256) internal override nonReentrant {
        // pull from farm just-in-time
        chef.withdraw(pid, assets);
    }

    // Keeper harvest; route privately off-chain via Protect/MEV Blocker when sending the tx
    function harvest() external nonReentrant onlyRole(KEEPER_ROLE) {
        _harvestInternal();
    }

    function _harvestInternal() internal {
        // 1) claim rewards (chef.deposit(pid, 0) or dedicated method, omitted)
        // 2) price sanity using v3 TWAP over twapWindow
        _sanityCheckTWAP();
        // 3) swap rewards->asset via router with slippage guard
        // 4) re-deposit to compound
        // NOTE: all approvals granted at deploy; keep allowances minimal in prod if protocol risk
    }

    function _sanityCheckTWAP() internal view {
        // Minimal TWAP example; production should check cardinality and use TWAL as well
        uint32[] memory secs = new uint32[](2); secs[0] = 0; secs[1] = twapWindow;
        (int56[] memory ticks,) = oracle.observe(secs);
        int56 diff = ticks[0] - ticks[1];
        require(diff != 0, "TWAP/STALE");
        // additional checks omitted; wire into price limits
    }

    // Admin ops
    function setHarvestOnDeposit(bool on) external onlyRole(DEFAULT_ADMIN_ROLE) { harvestOnDeposit = on; }
    function setParams(uint32 twapSec, uint16 minCard, uint256 slipBps) external onlyRole(DEFAULT_ADMIN_ROLE) {
        require(twapSec >= 60 && slipBps <= 200, "bad-params");
        twapWindow = twapSec; minCardinality = minCard; slippageBps = slipBps;
    }

    // ERC‑4626 overrides
    function totalAssets() public view override returns (uint256) {
        // read farm balance + idle (example: call into chef userInfo)
        // return wantInChef + asset.balanceOf(address(this));
        return asset.balanceOf(address(this)); // stub
    }
}

Why This Works in Practice

The allocator uses ERC-4626 to help keep debt under control, which is great because it means strategies don’t have to handle their own separate bookkeeping. The harvest-on-deposit feature is a great way to stop value from slipping away for those who already own it.

• Thanks to TWAP sanity, we make sure that swaps occur at prices you can rely on. Also, when we go live, we boost the cardinality for Uniswap v3 when we attach. This way, we ensure there's plenty of historical data ready for your twapWindow. (docs.uniswap.org). Keeper calls don’t keep any state, which means you can easily batch them up without any worries. When it comes to production, keepers usually go with either Flashbots Protect or MEV Blocker to send in their calls. If you're looking for all the RPC parameters--like the options for fast mode versus max privacy--you can check out the runbooks for SRE. They've got everything documented there! (docs.flashbots.net). We can have either Chainlink Automation or Gelato take care of when we should harvest. It's a pretty convenient option! Let’s make sure we get the performGasLimit and LINK/OPEX budgets just right. We definitely want to steer clear of any flicker or funding problems that might lead to interruptions. (docs.chain.link).

Emerging Practices to Consider for Your 2026 Roadmap

• You know, async exits using ERC-7540 are really starting to take off, especially when it comes to LST/LRT and RWAs. They’re becoming a must-have! You'll want to dive into setting up those requestDeposit and requestRedeem processes, along with managing the claim lifecycles. Don’t forget to create some dashboards too! They’ll help you keep an eye on what's pending versus what’s claimable. Make sure to keep an eye on ERC‑7887 in case you need to cancel anything for a better user experience. You never know when it might come in handy!
• ERC‑7575 for multi-asset entry is seriously a game changer! Ideally, your LP strategies and cross-asset pipelines should take advantage of a single share token that has multiple deposit endpoints. This way, you can streamline your processes and make everything run more smoothly. Hey, let’s steer clear of that wrapper mess! If you want the scoop, just click here for all the details.

Hey there! Have you heard about the latest buzz around account abstraction touchpoints? It's pretty exciting stuff! With EIP‑7702 going live on May 7, 2025, you can now batch your deposits and permissions all in one go with a smart-account transaction. Plus, there’s the option to selectively sponsor gas fees. How cool is that? This is really great for onboarding campaigns while still keeping control of your assets!

It's really important to remember the practical side of compilers. Go for `solc >=0. 8. You'll get to enjoy the perks of temporary storage and some cool upgrades to the optimizer. Why not give 0 a shot? It could be fun to see what you come up with! 8. So, it’s the end of the line for 29, at least on the testnets, until the EVM target is all set to go live. This really helps avoid those delicate setups and those “stack too deep” rewrites, and the best part? You’re still saving on gas! If you're looking for more details, you can check it out here. It’s definitely worth a look!

• Formal testing is really important. Hey there! Just a quick reminder to integrate the ERC‑4626 invariants along with those strategy-specific safety properties--like making sure that share prices don’t drop without an external loss--into Echidna. It'll help ensure everything runs smoothly! Make sure to run Slither in your CI pipeline, and don’t forget to publish your coverage and properties in the audit folder! It’s super important to keep everything organized. Happy coding!

GTM Metrics You Should Demand (and What We Measure in Pilots)

• Integration Velocity: This is all about how quickly we can take a “new farm spec” and turn it into a live strategy using the 4626 interface and documentation. It really tracks the speed of that whole process. We're aiming to wrap things up within 10 business days after we get the adapter template. We really want to steer clear of any glue that’s not up to standard. A great way to gauge this is by looking at how many new listings pop up on aggregators each quarter. We're backed by the ecosystem standardization of ERC-4626, ERC-7540, and ERC-7575. Check it out here.
• Gas Optimization:
• User Flows: So, we’re looking at some pretty impressive savings here! We could potentially slash gas costs by anywhere from $60,000 to $120,000 for each deposit or withdrawal, compared to what we’re currently using as our baseline. We make this happen by cutting down on storage, using caching, and incorporating immutables.
• Harvest: We're looking to cut down costs by about 10-25%. We're doing this by making smart swaps, locking in our profits, and avoiding those public-mempool mishaps. We check how well we're doing by using solc IR optimizer profiles and looking at live transaction traces. If you want to dive deeper, check out Alchemy for more details.
• MEV-Aware Performance:
• Failed Harvest Rate: We're aiming for a failure rate of under 1%, especially when we compare it to the public mempool baseline, and we’ll be utilizing Protect’s fast mode to help us get there.
• MEV Refunds: We’re always on the lookout for any non-zero refunds for those flows that are friendly to backrunning. We keep an eye on builder sets, hints, and refunds during every epoch. Learn more here.
• Oracle Reliability: Our goal is to get Uniswap v3's cardinality up to 50 or more when it connects. We’re aiming for a TWAP window of at least 10 minutes, and we really hope to see no manipulation incidents during our chaos tests. We also share information about the cardinality growth transaction IDs and parameters. If you want to dive deeper into this topic, just check out the details here.
• Automation OPEX: We keep an eye on how much LINK we’re spending each month using Chainlink Automation v2. We’re all set to hit our target rhythm! We're aiming to get rid of flicker by making sure the checkUpkeep status stays true until we actually execute it. Plus, we want to keep our LINK balance at least 3 to 5 times higher than the minimum we need. We’re also sharing updates about our runbook and the alerts we've set up. If you need some help or guidance, feel free to check out this link. It'll point you in the right direction!
• Compliance for Integrations: Just a heads-up, every strategy and vault has to clear those 4626 conformance tests. When you're working with async flows, it's important to make sure they pass the 7540 interface checks. And if you're dealing with multi-asset entries, don't forget to get those through the 7575 interface checks too! We share our interface support using ERC-165. Get the scoop here.

Implementation Checklist (What We're Actually Shipping)

Alright, let’s dive in! We’re starting things off with a standards-first vault/strategy set, packed with all the essential documents and diagrams you’ll need. We'll only include adapters when we really need to. Hey, we’re all set with our MEV-protected operational runbooks! They’ve got everything you need, like Flashbots/MEV-Blocker setups, lists of builders, and some really useful tips on privacy and refunds. You can look forward to seeing Chainlink/Gelato automation in action! We’ve got everything covered with documented OPEX, alerting systems in place, and even an emergency pause option just to be safe. We're going to share some oracle initialization scripts that will not only help increase cardinality but will also set some reasonable limits for each pair. We're really stepping up our testing game by using Foundry, Echidna, and Slither CI. Plus, we’re adding a special “audit folder” that’s packed with invariants, parameters, and deployment playbooks to keep everything organized and thorough.

• Exciting news! We’ll be providing you with procurement-ready materials. This includes a secure development lifecycle, an audit scope, and test evidence specifically designed for exchanges and aggregators.

Where 7Block Fits

Whether you’re just getting started or aiming to polish your existing project, we’re here to help! Check out our customized smart contract development and our complete DeFi development services. We've got everything you need to make your vision a reality! We'll set up those systems with MEV-aware operations for you, and we'll hook you up with a GTM metrics dashboard so you can keep an eye on everything.

Got everything set up and rolling? No problem! We’ve got your back with our focused security audits. We take a close look at specific issues that might be causing you headaches, like oracle drift, async redemption problems, and harvest griefing. Just let us know how we can help! And don't worry, we’ve got your back with a "gas/MEV" remediation sprint to help set things straight again.

Are you thinking about expanding across different chains or assets? We’ve got your back! Let us help you figure out the best vault setup and create those cross-chain adapters you need. Check out our cross-chain solutions development for more info. We're here to level up your dApp user experience with our skills in dApp development.

Appendix: Configuration Snippets You’ll Actually Use

• Flashbots Protect (It's super quick, lets multiple builders in, and is perfect for harvesting). Hey! Make sure to use this RPC: rpc.flashbots.net/fast and don't forget to include the right hints for both refund and privacy. It'll help keep everything running smoothly! Only switch to useMempool=true if you're finding that your landing times are way too slow.
  To keep your mempool exposure under control, it's super important to stick with the same RPCs when you're confirming. If you want to dig deeper, take a look at the Flashbots docs. They're super helpful!
• Chainlink Automation (custom logic). So, Chainlink Automation is all about creating your own tailored logic for smart contracts. It lets you design and implement specific rules and workflows that fit your unique needs, giving you more control over how things run on the blockchain. Pretty cool, right? Just a heads up, make sure that your performGasLimit is set to cover the worst-case scenario when it comes to harvests. It’s always good to be prepared for anything! If you're thinking about funding your ERC-677 LINK, it's smart to go for at least 3 to 5 times the minimum amount. Trust me, it’ll give you a better cushion! Oh, and make sure to watch out for any flickering predicates in checkUpkeep. If you're thinking about time-based maintenance, it might be a good idea to upgrade before December 11, 2025. Just something to keep in mind! If you want to dive into the specifics, check out the Chainlink docs here. They’ve got everything you need laid out!
• Uniswap v3 Oracle is on the Rise! Hey! Just a quick reminder: when you're attaching a strategy, don’t forget to call Oracle.grow() (or you can use a helper, if that’s your thing) to make sure you hit your target cardinality. Aim for something like 50 to 144, depending on your TWAP window and how fast the chain’s block time is. Happy strategizing! You can check it out by using observe(). If you're looking for more info, you can check out the Uniswap docs. They’ve got a lot of great guidance there!
• Permit2 Onboarding
• Kick things off with a one-time max approval for Permit2. Once you've got that sorted out, go ahead and implement time-boxed, amount-capped signatures in your frontends and routers. It's a smart way to keep things secure while still getting the job done! This method really helps reduce unnecessary approvals and keeps those annoying support tickets from piling up. If you're looking for more info, definitely take a peek at the Uniswap docs. They've got a ton of useful details waiting for you!

Proof points (external signals you can rely on)

Hey there! Just a heads up--ERC-4626, ERC-7540, and ERC-7575 are really well-documented these days. You can find all the info you need on platforms like ethereum.org, the EIPs page, and the Tokenized Vault Foundation website. They've been keeping everything up to date, which is awesome! Yearn V3 really shook things up by bringing tokenized strategies into the limelight with its unique approach to immutable logic sharing. This innovation has quickly turned into the go-to language for yield vaults in the space. Feel free to take a look at it over on ethereum.org. It’s got all the info you need!

Pectra’s EIP-7702 rolled out some really neat "smart EOA" features that make things a lot easier for first-time depositors. By using batched flows and smartly applying sponsored gas where it fits, we’re definitely making some real progress. If you're looking to explore more about this, check out the blog at blog.ethereum.org. It's got all the details you need!

Flashbots Protect and MEV-Blocker are total game-changers when it comes to private order flow. You can tweak the privacy and refund settings to your liking, and believe it or not, a lot of DeFi teams are already putting them to good use in real-world applications! These tools are great for reducing the risks of harmful MEV when you're harvesting or rebalancing. They really make a difference! If you're looking for more info, definitely check out the Flashbots documentation. It’s packed with details that should help you out!

• Chainlink Automation v2. 1+ is really stepping up its game by putting standardized keeper economics in place. They’re also addressing some typical problems, like outdated registries, lack of funding, and those annoying flickers. So, basically, this makes scheduling compounding a really easy job on the operations front. Hey, if you want to dive into the specifics, be sure to check out the Chainlink docs. They’ve got all the info you need!

The business outcome

You’ll be able to ship quicker without the hassle of custom adapters. Plus, you’ll earn more because there’s less gas drag and fewer failed harvests. And hey, you can expand your listings by using options that fit the standards! But you know what the coolest part is? Your operations workload gets so much lighter! Thanks to private order flow and deterministic automation, you can finally kiss “harvest roulette” goodbye! Also, having solid oracle parameters really helps ward off those costly mishaps.

Book a Strategy Architecture Review

Looking to take your project to the next level? Let’s kick things off with a Strategy Architecture Review! This session is a great opportunity to take a close look at your current strategy and make sure it's in sync with your goals.

How to Book

1. Pick a Date and Time: Just choose a time that fits your schedule the best! We really want to make this easy for you!

2. Complete the Form: Just swing by our booking form here to get started! Just a couple of quick details, and you’ll be all set!

3. Secure Your Spot: After you send in the form, keep an eye on your inbox! You'll receive a confirmation email that has all the info you need.

4. Get Ready: Gather up any materials or questions you want to discuss. This way, we can really maximize our time together!

What to Expect

In our upcoming review, we're going to really dig into your current setup and the strategies you've got in place.
You can expect:.

• Expert Insights: Our team really knows how to identify what you’re doing well and where you could use a little boost.
• Actionable Recommendations: You'll leave with some real-world tips to boost your strategy.
• Open Discussion: We’d love to hear your questions and thoughts! Don’t hold back!

Let’s make sure your strategy is dialed in and ready to go! Book your review today!.