The command center Allo.sol calls to strategy contracts to determine logic around recipient eligibility, allocation, and token distribution. Every pool is created with a strategy, which it is tied to. You may choose to create a custom strategy, or clone an existing one.

All strategies, including custom ones, inherit a BaseStrategy.sol (opens in a new tab) that defines the common interface. This interface is how the strategy is able to be used even when calling from Allo.sol.

There is a wealth of developer-oriented information in the bundled Strategy ReadMe.md (opens in a new tab).

Strategies

While allocation mechanisms (opens in a new tab) can vary significantly, Allo generalizes the pattern to the register-allocate-distribute flow.

This flow addresses the following:

1. Recipient Eligibility: Who is eligible to receive funding from a pool? How is that eligibility determined?
2. Allocation: How does your strategy allocate from the pool? You can have token-holders vote, pool managers give approval, or something else entirely.
3. Distribution: Once funds have been allocated, how are they distributed? In a lump-sum, in milestone-based payments, as a stream, or something else?

Allo provides a standard pattern for implementing these, but what they do is entirely up to you. You're encouraged to look over existing examples (opens in a new tab), allo.expert (opens in a new tab), and beyond for inspiration.

Strategy Library

The Strategy Library (opens in a new tab) includes a variety of useful components.

• Example contracts (opens in a new tab), to be used out of the box or as reference
• Extensions (opens in a new tab)/ Libraries (opens in a new tab) to provide readily reusable components, taking grunt work out of custom development
• BaseStrategy.sol (opens in a new tab) to provide a common pattern for calling of strategy methods

Please note that these strategies are presented as-is, and some components may not be audited.