Strategy Optimization

Definition ∞ Strategy optimization is the process of refining investment or operational approaches to maximize desired outcomes. This involves systematically analyzing and adjusting parameters, rules, or algorithms within a trading, liquidity provision, or protocol management framework. The goal is to enhance efficiency, profitability, or risk mitigation. It utilizes data analysis and backtesting to identify superior configurations.
Context ∞ Strategy optimization is continuously applied across decentralized finance protocols and algorithmic trading systems to improve performance in dynamic market conditions. News often highlights updates to smart contract logic or protocol parameters resulting from optimization efforts. This aims to attract more users and capital by offering more competitive returns or reduced risks.