Automated strategies that compound and optimize yields across DeFi protocols.
Networks
EthereumArbitrum
Top protocols
ConvexYearnBeefyStakeDAO
What are Yield Vaults?
Yield vaults are automated strategies that optimize returns by compounding rewards, rebalancing positions, and executing complex DeFi strategies. You deposit assets and the vault handles everything.
How Yield Vaults Work
Auto-Compounding: Vaults automatically harvest rewards and reinvest them, capturing compound interest without manual intervention.
Strategy Optimization: Vault managers allocate across protocols to maximize risk-adjusted returns.
Gas Efficiency: Costs are shared across all depositors, making frequent compounding economical.
Top Vault Protocols
Convex Finance: Boosted Curve yields through CRV/CVX stacking
Yearn Finance: Multi-strategy vaults across DeFi
Beefy Finance: Multi-chain auto-compounding
StakeDAO: veToken liquid lockers
Vault Types
Single Asset: Deposit one token, vault executes strategies
LP Vaults: Deposit LP tokens for auto-compounded pool rewards
Boosted Vaults: Use governance tokens for enhanced yields
Risks to Consider
Strategy Risk: Vault strategies can underperform or fail
Smart Contract Risk: Additional contract layer
Management Fees: Typically 2% management + 20% performance
Dependency Risk: Relies on underlying protocol stability