In case a protocol used in strategies gets exploited, we can emergency withdraw the funds from the protocol on behalf of Brokkr users. The funds are still stored in the strategy but not in the 3rd party protocol.
Consists of two strategies, an actual investment strategy, and a cash strategy.
Typically the target allocation of the Wrapper portfolio would be 100% investment strategy, and 0% cash strategy.
In case of an emergency exit, the portfolio rebalances all funds from the investment strategy (100% -> 0%) into the cash strategy (0% -> 100%).
The DAO Team decides to emergency exit a strategy
The DAO multisig triggers a function to rebalance
The portfolio moves all funds from the investment strategy into the cash strategy
Users can withdraw their funds at any point, while DAO has never access to their funds