Yield Vault
A yield vault (Yearn pioneered them) is a smart contract that automates yield farming for you: deposit tokens, and the vault moves them between strategies
A yield vault (Yearn pioneered them) is a smart contract that automates yield farming for you: deposit tokens, and the vault moves them between strategies — lending, staking, compounding rewards — while you hold a single vault token representing your share.
Why it matters
Vaults turn expert-level farming into one click, auto-compounding gains you’d never harvest manually. But every strategy the vault touches is risk you inherit — a hack anywhere in the stack drains the vault. “Set and forget” works until the one strategy you didn’t read about blows up.