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Understanding a Strategy

A Strategy consists out of two moving parts. The first is the Strategy Adapter, which is a Smart Contract that "manages" deposits, withdrawals and (re-) compounding for a given Yield Generator. The second part is the actual Yield Generator its Smart Contract, Aave or Curve for example.
Every integrated protocol within the Spool Ecosystem has its own Strategy Adapter. Creating a new Spool Smart Vault does not deploy new Strategy Contracts, instead it uses existing ones.
A Strategy can technically be anything that takes deposits, allows instant withdrawals and generates yield. As an example, a complicated strategy can buy spot ETH, short ETH future contracts and collect funding as yield. Spool will allow for many unique and tailored, complex strategies in the future.
In order to understand "Where the yield comes from" we invite you to look at: