Overview
A yield vault is a managed pool that automates yield strategies for deposited funds. It moves capital between opportunities to maximize returns. Vaults reduce the effort of active yield management.
How It Works
Depositors fund a vault, and its strategies allocate assets to the best yield sources. Strategies rotate automatically as rates change. Users receive yield-bearing tokens representing their position.
Why It Matters
Vaults democratize sophisticated yield strategies and save users time and gas. They are central to yield aggregation and auto-compounding. Their risk includes strategy and smart contract failures.
Related Concepts
Yield vaults are a feature of Yield Aggregators like Yearn. They connect to Auto-Compounding and APY.