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  2. /Glossary
  3. /Vault
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defi

Vault

A smart contract that automates a yield-generating strategy by depositing and managing funds on behalf of users.

Definition

A smart contract that automates a yield-generating strategy by depositing and managing funds on behalf of users. Yearn Finance popularized vaults where you deposit tokens and the vault automatically moves funds between the best opportunities. ERC-4626 standardized how vaults work across DeFi.

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Related Terms

Yield Aggregator

A DeFi protocol that automatically moves your funds between different yield opportunities to maximize returns.

Yield Farming

Strategically moving capital between DeFi protocols to maximize returns.

Smart Contract

Self-executing code stored on a blockchain that runs when conditions are met.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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