Proxy Smart Contracts

Each LevelQ vault is connected to at least one Proxy Smart Contract. These Proxy Smart Contracts are crafted to encapsulate the mechanics of the actual investment strategies developed by the LevelQ team. Serving as the operational backbone, each Proxy contains precise information about its designated strategy, executing specific actions following the chosen methodology.

Crucially, Proxy Smart Contracts play a pivotal role in interfacing with third-party protocols through the LevelQ execution framework. These contracts act as conduits, forwarding requisite actions in the form of transactions to external protocols. Every Proxy Smart Contract is overseen by a designated managing address, referred to as the Proxy Operator. The Operator is responsible for signing and executing transactions, ensuring the implementation of chosen strategies.

To fortify user security, each Proxy Smart Contract is configured to permit only a specific set of operations. This deliberate limitation shields users from potential fraud by the Proxy Operator. For instance, the Proxy Operator is restricted from sending assets to arbitrary addresses and is only empowered to interact with predetermined protocols and pools. This configuration reinforces the trustworthiness of LevelQ Finance's Proxy Smart Contracts, prioritizing user protection and security.