Vault

DeFi

Product or contract that automates asset management.

A vault aggregates user deposits to run strategies like lending, farming, or rebalancing. It abstracts complexity, often with tokenized shares representing deposits.

Frequently asked questions

  • How do vaults work?
    They pool deposits and run strategies, distributing gains and losses across depositors.
  • What risks do vaults have?
    Smart contract risk, strategy risk, and market risk. Read docs and audits before depositing.
  • How are shares calculated?
    Vaults issue shares proportional to deposits and adjust share price as profits or losses accrue.