Plain English
A vault is a DeFi product that automates a yield strategy for depositors. You deposit an asset, the vault’s smart contract executes the strategy (lending, LP positions, restaking, hedged farming) on your behalf, and returns are split among depositors after fees.
How it actually works
Yearn pioneered the model. Today vaults exist for everything: ETH staking strategies, stablecoin yield aggregation, leveraged LP positions, hedged basis trades. Each vault has a clear strategy described in its docs and audited code. You deposit the input asset, receive a vault token representing your share, and withdraw any time (subject to lockup, if any).
What it means for you
For members who want yield without operational complexity, well-built vaults are a working solution. The trade-off: vault fees, smart-contract risk on top of the underlying protocol risk, and strategy-specific drawdowns when markets move against the position.
We teach vault selection: how to read a vault’s strategy, evaluate its real returns net of fees, and combine vaults to construct a diversified yield stack.
Educational content only. Not investment, tax, or legal advice.