Vault
A smart contract that automatically manages your crypto to earn yield. You deposit, and it handles the complex strategies for you.
Example
Depositing stablecoins into a Yearn vault that automatically moves them between Aave, Compound, and Curve for best returns.
Related Terms
Tools & Protocols
⚙️How It Works
- 1
Deposit
Send tokens to the vault contract
- 2
Receive Shares
Get vault shares representing your stake
- 3
Strategy Works
Your tokens earn yield through automated strategies
- 4
Redeem
Trade shares back for tokens + earned yield
⚠️Risks & Warnings
- •Smart contract bugs in vault or underlying protocols
- •Strategy losses if market conditions change
- •Withdrawal delays during high demand
- •Impermanent loss in LP-based strategies