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STRATEGIES

Vault (Yield Vault)

Definition

A vault is an automated DeFi strategy that pools user funds and deploys them across various protocols to maximize yields. Vaults handle the complexity of yield farming automatically.

Example

💡 Example

Yearn Finance vaults automatically move your funds between different protocols to find the highest yields.

Risks to Consider

⚠️ Risks
  • Strategy risk
  • Smart contract risk
  • Impermanent loss

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