Vault

In DeFi, a vault is a smart contract that automates yield-generating strategies on behalf of depositors. Users deposit their assets into a vault, which then deploys those funds across various DeFi protocols to maximize returns through strategies like compounding rewards, liquidity provision, or lending. Vaults simplify complex DeFi strategies into a single deposit action. The term is also used more broadly for any secure smart contract that holds and manages funds, such as treasury vaults in DAOs.