What are Hooks and Yield Strategies?

Hooks are small smart‑contract scripts that execute on the XRPL when certain conditions are met. They can enforce compliance rules, trigger automated rebalancing or perform yield harvesting. Yield strategies use hooks to compound staking rewards or adjust liquidity across pools without manual intervention. When you opt into an auto‑compound strategy, a hook may automatically re‑stake your AMM dividends, maximising your yield. Dynamic rebalancing strategies move capital between pools based on yield rates and risk targets. All hooks are audited and sandboxed to prevent misuse; you can manage your strategies in the admin panel.