Vaults

What is a Vault in DeFi?

A Vault is like an automated yield basket. You deposit your crypto — and the vault handles the rest:

• It finds the best yield opportunities

• Moves your funds automatically between them

• Reinvests profits back into the strategy (so your returns compound!)

Why Vaults Are Great for Beginners

• Set it and forget it — just deposit once and let the strategy run

• Auto-compounding — profits are reinvested to grow faster

• Curated by experts — the strategy logic is built by teams who optimize for safety and yield

What are the Risks?

While vaults make things easy, it’s still important to be mindful:

• Smart contract risk — You’re trusting the vault’s code and automation logic

• Strategy risk — If the yield sources it uses drop or change suddenly

• Access risk — Some vaults may have lock-up times or withdrawal fees