Strategies & Yields

Frequently Asked Questions (Strategies & Yields)

How does strategy allocation work?

The StrategyRouter automatically distributes your deposited SOM across different strategies according to governance-defined weights. This ensures balanced exposure and efficient use of capital.

What strategies are available right now?

Currently, Insomnia includes the SimpleHoldingAdapter, which securely holds SOM as a baseline strategy. Over time, more strategies like liquidity mining, lending, or cross-chain farming can be added through governance.

Can new strategies be added in the future?

Yes. The system is designed with a modular IStrategyAdapter interface, meaning governance can add new strategies without changing the core vault or router.

How often are yields harvested?

Harvests can be triggered at any time by keepers or governance. The frequency usually depends on gas efficiency and how much yield has accumulated.

What happens during a harvest?

When a harvest is triggered, yields from strategies are collected and sent back to the vault. This increases the vault’s total assets, which is reflected in the value of your vault shares.

Do I need to manually claim yield?

No. Yield is automatically reflected in the vault’s balance. When you withdraw, your share of the yield is included in your withdrawal amount.

Are there risks with the strategies?

Yes, as with all DeFi systems. Risks include:

• Smart contract risk – bugs or vulnerabilities in strategies.

• Liquidity risk – delays or slippage when unwinding positions.

• Protocol risk – failures in the underlying protocols where funds are deployed.

The Insomnia Protocol mitigates these with conservative strategy selection, TVL caps, governance oversight, and pause controls.