> For the complete documentation index, see [llms.txt](https://docs.markovlabs.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.markovlabs.xyz/curation-methodology/allocation-engine.md).

# Allocation Engine

Markov approaches curation in DeFi similarly to how traditional asset managers approach portfolio management. Our process is built around a rigorous, research-driven framework: we design models through quantitative research, implement them through systematic execution, and continuously evaluate performance relative to industry benchmarks.

At the core of this process is our **allocation engine**, the systematic framework used to determine how capital is distributed across credit markets. Portfolio allocations are derived from models developed through quantitative modeling, empirical testing, and large-scale simulations.

The core of the allocation engine is as follows:

* [**Model Determination**](/curation-methodology/allocation-engine/model-determination.md)**:** Build and validate quantitative models to identify how yield is generated across markets and determine optimal portfolio allocations.
* [**Systematic Allocator**](/curation-methodology/allocation-engine/systematic-allocator.md)**:** Execute model-driven allocations in real time, rebalancing capital efficiently based on market conditions and predefined constraints.
* [**Research Phases**](/curation-methodology/allocation-engine/research-phases.md)**:** Develop strategies in stages, starting with controlled deployment and scaling over time as models are validated and refined.