# Strategy Mechanics

**Asset Supply**: Users supply their RWA tokens into a Gauntlet-curated vault, which executes the yield optimization strategy within our sophisticated risk management framework.

**Collateralization**: The vault deposits the RWA tokens as collateral on a leading lending protocol and borrows stablecoins against this collateral.

**Strategic Leverage**: The borrowed stablecoins are used to purchase additional RWA tokens, which are again deposited as collateral.

**Dynamic Optimization**: This loop remains active subject to risk levels established by our quantitative yield optimization engine, which continuously monitors yield and borrow rates across DeFi markets.

**Automated Risk Management**: Our engine dynamically adjusts leverage ratios and collateralization levels based on market conditions, removing the need for manual position management.


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