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On-Chain Vaults

Definition

On-chain vaults are smart contract-controlled repositories for digital assets, where funds are held and managed directly on a blockchain network. These vaults execute predefined strategies for yield generation, asset management, or security, all transparently verifiable on the public ledger. Users deposit their assets into these contracts, which then automatically deploy them according to the vault’s programmed logic. They provide a decentralized and automated method for interacting with various DeFi protocols.