Vault
Last updated 17 October 2026Last verified 17 October 2026
What is a DeFi vault?
A managed strategy contract that pools user deposits and runs a specific yield-seeking program (leveraged staking, automated LP management, etc.). Adds operational convenience but also adds one more smart-contract layer between the user and their capital. Strategy risk, manager risk, and contract risk all stack on top of each other in vault architectures.
TradFi equivalentA discretionary managed mandate. The depositor is buying a strategy and a manager, and takes strategy risk and manager risk on top of the underlying exposure.