How vault shares represent pooled assets deployed through programmable strategies.
DeFi explainer
Yearn vaults use strategies to deploy pooled assets across DeFi protocols.Credit: Yearn Finance mark via Cryptocurrency IconsOriginal sourceLicenseAll image credits
A Yearn vault pools deposited assets and issues shares that represent a claim on the vault. Strategies can move capital through DeFi protocols in an attempt to earn yield after costs.
Returns appear in the value of vault shares
The number or exchange value of shares reflects the vault’s assets and strategy results. Displayed annualized rates are backward-looking measurements, not guaranteed future returns.
Strategies can change over time
Governance or authorized operators may update how a vault deploys assets, subject to the vault’s current rules.
Automation combines several risks
Vault users face smart-contract risk, strategy risk, dependency risk, oracle or liquidity failures, and the market risk of the deposited asset. Withdrawal conditions and fees should be checked directly.
Dependencies create layered risk
A vault can depend on other protocols, tokens, price feeds, bridges, or liquidity venues, so failures may propagate.
