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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

Related Terms

Related Articles

🤖 Vaults: DeFi Investing Streamlined?

As the ecosystem of decentralized financial services on Ethereum grows and matures, the service offering is becoming more dense and sometimes hard to understand. While the most technically savvy users can chase the latest releases and hedge their risk appropriately, less-seasoned investors might feel left out. Luckily, there are DeFi services made to match the diverse set of investors exploring the space. Yearn Finance was the first platform to pioneer a passive-type of investment products: vaults.
🤖 Vaults: DeFi Investing Streamlined?

YearnFinance - DeFi on autopilot?

A few weeks ago, Yearn v2 release and the launch of the YFI token (pronounced “Waifu”) shook decentralised finance. Indeed, the whole recipe was there: Yearn is like a robo advisor, it helps you save and grow a capital - obviously one of the most thought after use cases. More than the product itself, core to defining what Yearn became was its founder Andre Cronje, his choice of fully opening the governance, and the amazing community that soon federated around the project.
YearnFinance - DeFi on autopilot?