A vault is a smart contract that automates depositing capital into a DeFi protocol. Vaults also commonly pool capital from various users and create economies of scale through reducing gas costs and achieving higher levels of protocol incentives.
Vaults are a great way to participate in DeFi:
- Minimal maintenance (compared to manually using a protocol)
- Useful metrics to help evaluate opportunities (vault user interfaces commonly show APY, overall value locked in an opportunity, deposit history, etc.)
- Helpful with discovering new protocols
- Often cheaper to use than protocols directly, sometimes with higher returns
Follow our handy guides to get started on the basics as quickly as possible:
Learn the fundamentals of Yagi to get a deeper understanding of our main features: