{"id":"octant","title":"Octant","content":"**Octant** v2 is a [blockchain](https://iq.wiki/wiki/blockchain)-based funding system that redirects investment yield into funding streams for projects and initiatives, while preserving the depositor's original capital. The system is designed to create continuous, automated funding by separating investment returns from the underlying assets. [\\[6\\]](#cite-id-vWHnAKisOHJwmLA8) \n\n## Overview\n\nOctant v2 is a [blockchain](https://iq.wiki/wiki/blockchain)-based funding system that redirects investment yield into funding streams for projects and initiatives, while preserving the original capital. Users deposit assets into standardized vaults, choose yield-generating strategies, and configure how the resulting returns are distributed to predefined recipients or funding mechanisms. Instead of accruing yield to the depositor, the system automatically routes it to designated addresses or allocation models. The system is built from [smart contract](https://iq.wiki/wiki/smart-contract) components, including vaults for managing assets, routing contracts for splitting distributions, and optional mechanisms for community-driven allocation (e.g., voting-based models). It separates principal from yield, ensuring only generated returns are distributed. This enables continuous, automated funding without depleting underlying capital, using interoperable [DeFi](https://iq.wiki/wiki/defi) standards and programmable distribution rules. [\\[1\\]](#cite-id-0uc6LlmE3Zk363wx) \n\n## Features\n\n![](https://ipfs.everipedia.org/ipfs/QmfEkBewfn89FZMa8sA2ewGrskJjy1QLi8Bn1aTRdxEqs8)\n\n### Funding Vaults\n\nFunding Vaults are smart contracts that deploy assets into [DeFi](https://iq.wiki/wiki/defi) strategies to generate yield and automatically direct that yield toward funding purposes. The deposited capital remains intact, while only the returns are distributed according to predefined rules. The vaults handle strategy selection, yield collection, and distribution, allowing assets to produce ongoing funding streams without reducing the underlying balance. \n\nMulti-user vaults support participation from multiple contributors and can be configured for different asset types and strategies. Variants include vaults for non-rebasing tokens (where yield is generated externally), rebasing tokens (where yield accrues within the token), and vaults that use multiple strategies simultaneously. Some configurations include optional lock-up periods and shared participation in funding. Each type is designed to capture yield efficiently and distribute it while maintaining the security of deposited capital.\n\n“Dragon” vaults are designed for use with [multi-signature](https://iq.wiki/wiki/multi-signature-wallet) treasury wallets. Assets remain under the control of wallet owners as they are deployed into yield-generating strategies. The generated returns are automatically routed to funding destinations, while the original assets are preserved. Protective controls are included to limit risk exposure during strategy execution. [\\[2\\]](#cite-id-7bDH34EPiAh3an8f) \n\n### Contribution Types\n\nOctant defines two main methods for contributing funding through yield. In both cases, the system routes value generated from assets toward funding purposes rather than returning it to the asset holder.\n\nOne method, often described as regenerative contribution, involves depositing assets into funding vaults and selecting yield-generating strategies. The vaults generate returns and automatically redirect them to distribution mechanisms. These vaults can also accept yield-bearing tokens, with the value they accrue captured and routed without additional steps, enabling integration with existing [DeFi](https://iq.wiki/wiki/defi) assets.\n\nThe second method allows contributions without depositing assets into vaults. Instead, assets remain in an external wallet, and the user authorizes periodic transfers of funds to the system. Yield generation occurs independently of Octant, and only predefined amounts are transferred for distribution through its allocation mechanisms. [\\[2\\]](#cite-id-7bDH34EPiAh3an8f) \n\n### TAM\n\nTokenized Allocation Mechanisms are [smart-contract](https://iq.wiki/wiki/smart-contract) systems used to manage funding decisions and distribution through structured voting processes. They are based on a standardized core design with fixed lifecycle stages—such as registration, proposal creation, voting, finalization, and distribution—while allowing different voting models to be implemented through configurable logic. Participants can register for voting, optionally by depositing assets to gain voting power. Proposals are submitted for funding, and users allocate votes according to predefined rules, such as quadratic voting, in which increasing influence carries a higher cost. After voting ends, results are finalized, and approved proposals are queued for distribution. Funding is then allocated either by issuing redeemable shares or transferring assets directly, depending on the configuration.\n\nThe system enforces strict rules on timing, permissions, and execution, including voting periods, distribution delays, and limited redemption windows. It uses a token-like accounting structure to track voting power and allocations, while restricting transfers to maintain consistency. Overall, the mechanism provides a modular and auditable framework for running funding rounds with programmable voting and distribution logic. [\\[5\\]](#cite-id-kO9ldXEqk8BRGkba) \n\n## Strategies\n\n### YDS\n\nYield Donating Strategies are [smart-contract](https://iq.wiki/wiki/smart-contract) vaults that accept a single token and deploy it into an external yield source, such as lending or [staking](https://iq.wiki/wiki/staking). Instead of distributing profits to users, any gains are converted into new shares that are assigned to a predefined recipient address. When losses occur, shares held by that recipient are reduced first, acting as a buffer that protects user balances unless losses exceed that reserve. The model separates user deposits from yield outcomes. Users receive shares that track their principal rather than accumulating returns, while all generated yield is redirected for funding purposes. A periodic reporting process updates the system by harvesting rewards, valuing positions, and determining whether to [mint](https://iq.wiki/wiki/minting) or [burn](https://iq.wiki/wiki/token-burn) shares for the recipient address. This process ensures that profits are consistently redirected and that losses are absorbed in a defined order.\n\nThe design relies on standard tokenized vault interfaces and keeps user interactions simple, with deposits and withdrawals functioning as in typical vault systems. Additional roles, such as managers and automated operators, handle configuration and reporting. Overall, the structure enables yield to be systematically diverted into funding streams while maintaining transparent accounting and preserving deposited capital unless losses exceed the available buffer. [\\[3\\]](#cite-id-h8afWHEnFgbjtotR) \n\n### YSS\n\nYield Skimming Strategies are [smart-contract](https://iq.wiki/wiki/smart-contract) vaults designed for yield-bearing assets whose value changes through an internal exchange rate (e.g., [staking](https://iq.wiki/wiki/staking) derivatives). Instead of passing this appreciation to users, increases in value are converted into shares assigned to a designated recipient address. When the asset’s value declines, those recipient-held shares are reduced first, acting as a buffer that protects user balances unless losses exceed that reserve. Users deposit assets and receive shares that track a stable reference value (such as an equivalent [ETH](https://iq.wiki/wiki/ethereum) value) rather than fluctuating with the underlying asset’s appreciation. The vault holds the yield-bearing asset directly, and a periodic reporting process updates the exchange rate and determines whether to [mint](https://iq.wiki/wiki/minting) or [burn](https://iq.wiki/wiki/token-burn) shares for the recipient address. This ensures that gains are consistently redirected while losses are absorbed in a defined order.\n\nIf losses exceed the available buffer, the system enters a fallback state where remaining assets are distributed proportionally among participants, and normal operations are restricted. Overall, the structure enables automatic capture and redistribution of asset appreciation while maintaining stable user value exposure under normal conditions. [\\[4\\]](#cite-id-HxE95UrU3zNGdz0H) \n\n## Partnerships\n\n* Shutter\n* [Morpho](https://iq.wiki/wiki/morpho)\n* KPK\n* [Ethereum Foundation](https://iq.wiki/wiki/ethereum-foundation-ef)\n* Protocol Guild\n* [Yearn](https://iq.wiki/wiki/yearn)\n* [Sky.Money](https://iq.wiki/wiki/skymoney)\n* [Lido DAO](https://iq.wiki/wiki/lido-dao)","summary":"Octant's blockchain system funds projects with investment yield, creating continuous, automated funding streams while preserving the original capital.","images":[{"id":"QmZ8X4PzPNHokEeSoVy8TuZY7auH7WjHh38VTu1eYiE8C7","type":"image/jpeg, image/png"}],"categories":[{"id":"defi","title":"defi"}],"tags":[{"id":"Protocols"},{"id":"Ethereum"},{"id":"Organizations"}],"media":[{"id":"QmQSCc4hqaHwuWQ52zVkDwRLdKNWqsvTqskFBiSqxN2ntu","type":"GALLERY","source":"IPFS_IMG"},{"id":"QmfEkBewfn89FZMa8sA2ewGrskJjy1QLi8Bn1aTRdxEqs8","name":"Yn0it4xWs2tHlriq.svg+xml","caption":"","thumbnail":"QmfEkBewfn89FZMa8sA2ewGrskJjy1QLi8Bn1aTRdxEqs8","source":"IPFS_IMG"}],"metadata":[{"id":"references","value":"[{\"id\":\"0uc6LlmE3Zk363wx\",\"url\":\"https://docs.v2.octant.build/docs/developers/introduction\",\"description\":\"Octant v2 Introduction\",\"timestamp\":1774448183664},{\"id\":\"7bDH34EPiAh3an8f\",\"url\":\"https://docs.v2.octant.build/docs/developers/introduction/core-concepts\",\"description\":\"Octant Core Concepts\",\"timestamp\":1774448183664},{\"id\":\"h8afWHEnFgbjtotR\",\"url\":\"https://docs.v2.octant.build/docs/developers/yield\\\\_donating\\\\_strategy/introduction-to-yds\",\"description\":\"Octant Project Fundamentals Analysis\",\"timestamp\":1774448183664},{\"id\":\"HxE95UrU3zNGdz0H\",\"url\":\"https://docs.v2.octant.build/docs/developers/yield\\\\_skimming\\\\_strategy/introduction-to-yss\",\"description\":\"Introduction to Yield Skimming Strategy\",\"timestamp\":1774448183664},{\"id\":\"kO9ldXEqk8BRGkba\",\"url\":\"https://docs.v2.octant.build/docs/developers/tokenized\\\\_allocation\\\\_mechanisms/introduction-to-tam\",\"description\":\"Introduction to Tokenized Allocation Mechanisms\",\"timestamp\":1774448183664},{\"id\":\"vWHnAKisOHJwmLA8\",\"description\":\"Octant\",\"timestamp\":1774463928748,\"url\":\"https://octant.build/en\"}]"},{"id":"website","value":"https://docs.v2.octant.build/"},{"id":"twitter_profile","value":"https://x.com/OctantApp"},{"id":"discord_profile","value":"https://discord.gg/octant"},{"id":"github_profile","value":"https://github.com/golemfactory/octant"},{"id":"commit-message","value":"\"Added Octant v2 content and defi category\""}],"events":[{"id":"16899baf-2c51-4f2e-9e91-dc9ceaa1ebd7","date":"2023-01","title":"Octant Project Launch","type":"CREATED","description":"Octant, a project by the Golem Foundation, was launched in 2023 to create a blockchain-based funding system that redirects investment yield.","link":null,"multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"operator":{"id":"0xacb6c5AD52b8f605299B0d774CE97F26e3DB80c2"},"language":"en","version":1,"linkedWikis":{"blockchains":["ethereum"],"founders":[],"speakers":[]}}