Vaults Explained

Deep dive into how Concrete Vaults work, from capital deployment to yield distribution.

What is a Vault?

A Vault in the Concrete protocol is an automated, risk-managed strategy that accepts deposited capital and deploys it across yield-generating DeFi protocols. Vaults apply quantitative risk models continuously to manage exposure and optimize returns.

The Vault Lifecycle

• ▸Deposit: User deposits capital into the vault
• ▸Deployment: Capital is allocated across DeFi protocols per the quantitative model
• ▸Monitoring: Risk metrics are continuously tracked and evaluated
• ▸Rebalancing: Positions are adjusted when conditions breach defined thresholds
• ▸Yield Accrual: Returns are collected and attributed to depositors
• ▸Withdrawal: Users can redeem their proportional share of vault assets