DeFi Vaults: How They Work and Yield Strategies
DeFi vaults are smart contracts that automatically manage your yield strategies. Instead of manually jumping between protocols, signing dozens of transactions, and tracking rates, a vault handles everything for you. Without one, you'd be selecting protocols, approving transactions, monitoring rates, claiming rewards, swapping tokens, and reinvesting. Each step costs gas and time. A vault turns this into a single deposit that compounds automatically. Your wallet holds the position, the vault keeps your capital productive.