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DeFi Vaults

Definition

DeFi vaults are smart contracts that automatically manage and optimize cryptocurrency assets for users. These vaults execute predefined strategies to generate returns from various decentralized finance protocols, such as lending, liquidity provision, or yield farming. Users deposit their digital assets into a vault, and the underlying logic allocates these funds to maximize returns while potentially minimizing gas fees. They abstract away the complexity of active DeFi participation, offering a simplified approach to yield generation.