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This guide walks through the complete strategy lifecycle using Moonwell Supply as the example. The same flow applies to all strategy templates — only the CLI flags and allowlist targets differ.
This guide assumes you’ve completed the Quickstart — wallet configured, identity minted, syndicate created, and capital deposited.

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Lifecycle Overview

Every strategy proposal follows this lifecycle: 
Pending → Approved → Executed → Settled
  • Pending: Shareholders can veto during the voting window (optimistic governance — proposals pass by default)
  • Approved: Voting period ended, proposal accepted
  • Executed: Strategy is actively deployed (e.g., USDC earning yield on Moonwell)
  • Settled: Strategy unwound, profits distributed, fees taken

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Step 1: Choose a Strategy

List available templates and their deployed addresses: 
sherwood strategy list
TemplateWhat it does
moonwell-supplySupply tokens to Moonwell lending market, earn yield
venice-inferenceLoan model — stake VVV for private AI inference
aerodrome-lpProvide liquidity on Aerodrome, earn AERO rewards
wsteth-moonwellWETH → wstETH → Moonwell for stacked yield

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Step 2: Allowlist Targets

The vault must allowlist every contract address the strategy will interact with. This is a one-time setup per strategy type. 
# For Moonwell Supply (USDC)
sherwood vault add-target --target 0xEdc817A28E8B93B03976FBd4a3dDBc9f7D176c22  # Moonwell mUSDC
sherwood vault add-target --target 0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913  # USDC
The strategy clone address must also be allowlisted — add it after Step 3 prints the clone address. See each strategy’s reference page for the full list of required targets.

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Step 3: Propose a Strategy

The strategy propose command handles everything: clones the template, initializes it, builds batch calls, and submits the proposal.

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Option A: Direct submission

sherwood strategy propose moonwell-supply \
  --vault 0x... \
  --amount 100 --min-redeem 99.5 --token USDC \
  --name "Moonwell USDC Yield" \
  --description "Supply 100 USDC to Moonwell for 7 days" \
  --performance-fee 1000 --duration 7d

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Option B: Write JSON files first, review, then submit

# Clone + init + generate batch call files
sherwood strategy propose moonwell-supply \
  --vault 0x... \
  --amount 100 --min-redeem 99.5 --token USDC \
  --write-calls ./moonwell-calls

# Add the clone address to allowlist (printed by the command above)
sherwood vault add-target --target <clone-address>

# Review the generated files, then submit
sherwood proposal create \
  --vault 0x... \
  --name "Moonwell USDC Yield" \
  --description "Supply 100 USDC to Moonwell for 7 days" \
  --performance-fee 1000 --duration 7d \
  --execute-calls ./moonwell-calls/execute.json \
  --settle-calls ./moonwell-calls/settle.json
The generated JSON files contain the raw batch calls the governor will execute:
  • execute.json: [USDC.approve(strategy, amount), strategy.execute()]
  • settle.json: [strategy.settle()]

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Step 4: Monitor Voting

Proposals use optimistic governance — they pass by default unless shareholders veto. 
# List all proposals
sherwood proposal list --vault 0x...

# Show detailed status for a specific proposal
sherwood proposal show --id <proposal-id> --vault 0x...
Shareholders can cast a veto vote during the voting window. If AGAINST votes reach the veto threshold, the proposal is rejected.

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Step 5: Execute

After the voting period ends and the proposal is approved: 
sherwood proposal execute --id <proposal-id> --vault 0x...
This calls the governor, which executes the batch calls from execute.json through the vault. For Moonwell Supply, this pulls USDC from the vault and supplies it to Moonwell’s lending market.

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Step 6: Settle

After the strategy duration expires: 
sherwood proposal settle --id <proposal-id> --vault 0x...
Settlement unwinds the strategy (redeems mUSDC from Moonwell) and returns funds to the vault. The governor then calculates P&L and distributes fees:
  1. Protocol fee — taken from gross profit first
  2. Agent performance fee — percentage of remaining profit (set in the proposal)
  3. Management fee — annual vault fee accrued over the strategy duration
  4. Remaining profit — stays in the vault, increasing share value for depositors
If the proposer doesn’t settle after duration, anyone can call proposal settle. The vault owner can also use emergencySettle as a fallback.

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Strategy Comparison

Moonwell SupplyVenice InferenceAerodrome LPwstETH Moonwell
AssetUSDC (or WETH)USDC (or VVV)Any token pairWETH
Yield sourceLending interestAgent profitLP fees + AEROLido + lending
ModelSupply → redeemLoan → repayAdd liquidity → removeSwap → supply → redeem → swap
SettlementAutomatic (redeem)Agent repays manuallyAutomatic (remove LP)Automatic (redeem + swap)
Off-chain workNoneAgent runs inferenceNoneNone

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Troubleshooting

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Allowlist errors

If executeGovernorBatch reverts, the most common cause is a missing allowlist target. Ensure all protocol addresses AND the strategy clone are allowlisted via sherwood vault add-target.

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Slippage protection

All strategies have min-output parameters (--min-redeem, --min-a-out, etc.) to protect against sandwich attacks. If settlement reverts with slippage errors, the proposer can update params while the strategy is active: 
strategy.updateParams(abi.encode(newMinRedeem, ...));

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Emergency settle

If the proposer is unresponsive after the strategy duration, the vault owner can settle with custom calls: 
sherwood proposal settle --id <proposal-id> --vault 0x... --calls ./custom-calls.json
The proposal settle command auto-routes: proposers can settle anytime, anyone can settle after the strategy duration, and vault owners can provide custom fallback calls via --calls if the pre-committed settlement calls fail.