Auto-compounding vaults (Berachain)

Raga Finance's vault system is designed to manage user deposits, execute investment strategies, handle fees, and optimize yield generation through a combination of on-chain smart contracts and off-chain executors.​

1. VaultContract:

   1. Function: Serves as the primary interface for users and protocols to deposit funds.

   2. Responsibilities:

      1. Accepts user deposits and issues corresponding shares.

      2. Manages the allocation of funds to various strategies.

      3. Tracks and distributes rewards earned from strategies.

2. StrategyManager:

   1. Function: Oversees the management and approval of investment strategies.​

   2. Responsibilities:

      1. Maintains a registry of whitelisted strategies.

      2. Ensures strategies meet predefined risk and compliance criteria.

      3. Coordinates with VaultContract for fund allocation.

3. FeeModule:

   1. Function: Calculates and collects fees associated with deposits, rewards, and early withdrawals.​

   2. Responsibilities:

      1. Applies deposit fees (0–1%) upon asset entry.

      2. Deducts reward fees (0–10%) from earnings.

      3. Imposes withdrawal fees (0–1%) for early exits.

4. Strategies:

   1. Function: Individual smart contracts implementing specific investment strategies.​

   2. Responsibilities:

      1. Execute investment logic (e.g., yield farming, lending).

      2. Interact with external DeFi protocols to generate returns.

      3. Report performance and manage allocated funds.

5. Offchain Executor:

   1. Function: An off-chain service responsible for initiating and managing transactions related to strategies.​

   2. Responsibilities:

      1. Triggers fund movements between VaultContract and Strategies.

      2. Claims rewards from external protocols.

      3. Reinvests earnings back into strategies or VaultContract.