From the user's perspective, they choose which token they want to deposit, and Cargo finds the best possible strategy with the highest compounded interest rate. In the background, smart contracts swap users' funds into a matching pair of tokens and deposit that pair into the pool as a liquidity provider, minting LP tokens in return. The LP tokens are stored in the smart contract, and the user receives tokens representing their share in the pool. It is non-custodial in design meaning the user can safely leave the deposit to be managed passively. Meanwhile, bots collect accumulated rewards, swap them, and reinvest them into the most profitable pools. The main goal was to increase the return on investment which was proven successful in the shift from linear to logarithmic returns.
