# What is a strategy ?

Strategies are smart contracts connected to [BentoBox](https://hackmd.io/@HHK-ETH/ry1Hi8I-Y), they are supposed to generate yield for assets sitting inside [BentoBox](https://hackmd.io/@HHK-ETH/ry1Hi8I-Y).

Each strategy focus on a specific asset and have a maximum percentage allocation to manage risks.

For example, a strategy for USDC could be to lend 20% of the USDC sitting inside [BentoBox](https://hackmd.io/@HHK-ETH/ry1Hi8I-Y) on [Compound](https://compound.finance/).

This is how DAPPs like Kashi or Trident built on top of [BentoBox](https://hackmd.io/@HHK-ETH/ry1Hi8I-Y) generates extra yield for their users.