What are Strategies/Vaults?

Vault Overview

A Vault is a pooled investment product that automates yield strategies on behalf of depositors. Users deposit tokens into the Vault, and the underlying strategy actively manages these funds to generate returns in a secure and efficient manner. The Vault abstracts away the complexities of yield farming, trading, rebalancing, and risk management, making it simple for depositors to earn optimized yield.

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Key Features

• Professionally Managed The Vault follows automated strategies designed and maintained by protocol contributors. This reduces the need for users to manage complex on-chain positions themselves.

• Optimized for Yield The strategy reallocates funds across opportunities, adjusting exposure to maximize yield while minimizing idle funds.

• Delta Neutral Structures (where applicable) Strategies may use delta-neutral methods to reduce exposure to market volatility, ensuring yield is driven more by strategy execution than by price speculation.

• Liquidation Risk Management Leverage-based strategies include automated health monitoring and rebalancing to mitigate liquidation risk. Safety parameters are built into the system to protect user deposits.

• Composability The Vault plugs into underlying DeFi protocols (like lending markets, DEXs, or staking pools) to source yield seamlessly.

• Capital Efficiency Strategies may mix lending, borrowing, farming, and hedging techniques to extract the maximum efficiency from deposited assets.

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User Benefits

• Deposit once, earn yield automatically.

• No need to manage multiple DeFi positions manually.

• Risk and exposure managed by coded safeguards.

• Transparent performance tracking on-chain.

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Additional Notes

Exact parameters, risk profiles, and mechanics of each strategy are detailed on its dedicated Strategy Page within the app: app.troves.fi.