# Mechanics

Overview of ChainPL Protocol Functions

ChainPL operates through a streamlined protocol involving the interaction of various wallets and smart contracts. This protocol primarily delivers two core functions:

1. **Automated Yield Farming Optimization**: Enhancing user yields from yield farming processes, ensuring higher returns through ChainPL compared to other platforms or manual processes.
2. **Stakeholder Incentives**: Rewarding and incentivizing on-chain stakeholders who support and facilitate the protocol's continuous operations.

Detailed Mechanism

* **Yield Farming Function**: The protocol automates yield farming and optimizes returns. This process is depicted on the left side of the protocol flowchart. It includes the automated claiming and compounding of farm rewards back into the user's initial deposit, leveraging ChainPL Vaults and Strategy contracts.
* **Stakeholder Incentives**: The right side of the flowchart outlines the process of distributing rewards and incentives to protocol stakeholders. This includes participants who actively contribute to the maintenance and growth of the protocol.

Core Components of ChainPL Protocol

At the heart of the protocol lie various smart contracts, which include:

* **ChainPL Vaults**: These contracts store user deposits and implement yield optimization strategies.
* **Revenue Bridge Contracts**: These handle the conversion of various reward tokens into a uniform asset.
* **Fee Batch Contract**: It aggregates and manages the distribution of protocol fees.
* **Incentive Programs and Treasury**: Distribute rewards to stakeholders and manage the financial resources of the protocol.

Dependence on External Contracts

For optimal functionality, the ChainPL protocol relies on underlying liquidity pools and farms. These external contracts provide the necessary environment for profitable yield farming. Should these underlying platforms cease operations, ChainPL's contracts would still exist, but the yield generation and fee accrual would be significantly impacted.

In summary, ChainPL's protocol is a sophisticated blend of automated yield farming strategies and stakeholder reward mechanisms, all underpinned by a complex network of smart contracts that interact seamlessly to maximize returns and incentivize protocol growth and sustainability.
