Vault (DeFi)
A smart contract that pools deposited funds and automates a specific investment strategy.
A DeFi vault is a smart contract that accepts deposits from multiple users and automatically executes a specific, predefined strategy with the pooled funds, issuing depositors a token representing their share.
Vaults let users access an automated strategy without executing each step manually themselves, at the cost of trusting the vault's specific strategy and code.
Examples
- A vault might automatically compound staking rewards back into the original position on a regular schedule.
- Each vault's specific strategy and risk should be reviewed independently before depositing.
Learn more
Yield Aggregator
Read the Yield Aggregator glossary definition
DeFi Options Vault (DOV)
Read the DeFi Options Vault (DOV) glossary definition
ERC-4626
Read the ERC-4626 glossary definition
Redemption Fee
Read the Redemption Fee glossary definition
Yield Tokenization
Read the Yield Tokenization glossary definition