Reward harvesting

Beyond lending interest, some reserves pay bonus reward tokens, for example SpringSUI (sSUI), BLUE, DEEP, or Volo (vSUI). On its own, a reward token sitting in another denomination does nothing for your samSUI/samUSDC. SAM turns it into yield.

The harvest pipeline

On each rebalance, for every reserve that pays a reward, SAM:

1. Claims the accrued reward tokens from the protocol.
2. Swaps them back into the vault’s underlying coin via Cetus, using a fixed 2-hop route:

$$\text{Reward} \;\rightarrow\; \text{SUI} \;\rightarrow\; \text{CoinIn}$$

(Liquid-staking rewards like sSUI are first redeemed 1:1 to SUI, then swapped to the vault coin.) 3. Compounds the resulting amount into the pool as earnings, lifting the share price for every holder (after the performance fee). 4. Records the realized value, which feeds that reserve’s reward APR and therefore its allocation on the next rebalance.

Buffering small rewards

A reward amount too small to swap cleanly (below a minimum redeem floor) would round to nothing or be rejected by the swap pool. Instead of losing it, SAM buffers it inside the protocol position and swaps the whole accumulated buffer once it crosses the floor. Nothing is paid to whoever triggered the harvest, residual dust always stays working for the vault.

The compounding loop

Putting the pieces together, rewards create a self-reinforcing loop:

reward emitted → harvested and swapped to the vault coin → compounded into the share price → realized value lifts that reserve’s measured APR → next rebalance allocates more capital there → more reward emitted.

This is what lets SAM lean into whichever venue is paying the most at any given time, without anyone steering it by hand.

Note

Reward swaps execute against live Cetus pools at the moment of harvest. As with any on-chain swap, the amount realized depends on pool conditions at that instant.