Introduction

Allo V2 uses a single strategy contract to handle all logic around recipients, allocations, and token distribution. Developers can choose to create a custom strategy or clone an existing strategy. Allo provides a BaseStrategy that all strategies will inherit from. For more information, see the Writing a Custom Strategy page. Strategies must be created prior to creating a new pool and will be called by the Allo.sol contract.

To help illustrate strategy concepts, this documentation will refer to the Donation Voting (opens in a new tab) strategy as an example.

Recipients

Recipients refer to groups or individuals who can receive allocations from the pool. Strategy logic determines how eligible recipients are identified and registered. At a minimum, the recipient logic should consider:

• How recipient eligibility is determined
• What statuses a recipient may need to go through when registering
• How recipients will be identified
• Any additional data that is required for a recipient to be registered and eventually receive funds

The registerRecipient function is inherited from the BaseStrategy contract and needs to be completed in a custom strategy.

In our Donation Voting example, recipients are identified by their wallet address and are required to submit an application that is then reviewed by the pool manager. Applications are only accepted during a specified time period. Upon submission, the recipient is in a 'Pending' status, and after review are either 'Accepted' or 'Rejected'.

Allocations

Allocation logic determines how and when allocators can express opinions about distributing the pool's funds to recipients. Allocators are wallet addresses that are able to utilize the allocate function. Each strategy will need to determine what makes a wallet eligibile to be an allocator. Allocation can be as complex or simple as needed for a given strategy. Some common considerations include:

• Is there a certain time period allocation can occur during?
• Can an allocator allocate multiple times?
• Does allocation require funds to be sent, and if so where are they stored?

The Donation Voting strategy marks all addresses as eligible and they may allocate multiple times. Allocation involves donating pre-approved tokens to the recipient. Allocation can only occur during a specified allocation window.

Token Distribution

Finally, strategies need to determine how payouts are handled for recipients. Payout logic may include:

• Caluclating payout amounts
• Determining when and how often payouts occur
• Ensuring payout eligibility and accuracy
• Managing who can initiate a payout

Payouts are handled through the distribute function.

Donation Voting allows anyone to distribute funds, as long as a pool manager has determined the funds are ready for payout. It also includes the capability to reclaim undistributed funds 30 days after allocation has ended.

Strategy Library

The Strategy Library (opens in a new tab) includes a variety of strategy contracts. These contracts can be used as is or as a starting point for a custom strategy.