what is a Yearn Vault?

A Yearn Vault is a smart contract that:

• Collects deposits of one asset (ETH, DAI, USDC, etc.)
• Runs an approved strategy to earn yield
• Automatically compounds profits
• Gives you back the same asset you deposited, just more of it

You are outsourcing yield farming to code.

Instead of you:

• jumping between protocols,
• worrying about gas,
• tracking APYs,
• managing liquidation risk,

…the vault does this continuously and automatically.

Simple mental model

Think of a Yearn Vault as:

“A very smart fund manager who only accepts one type of asset, never changes it, and reinvests everything for you.”

You deposit ETH → you always withdraw ETH