Vaults
Morpho Vaults are managed yield strategies that automatically allocate your deposits across multiple markets.
How vaults work
Instead of picking individual markets yourself, you deposit into a vault. The vault's curator (manager) handles allocation:
- You deposit — Add USDG (or another asset) to the vault
- Curator allocates — Funds are spread across selected markets
- You earn yield — Aggregated returns from all underlying markets
- You withdraw — Get your deposit + earnings anytime
Example
Robinhood Earn USDG
Curated by Robinhood
6.8%
Net APY
TVL
$1.2M
Markets
12
Fee
10%
Vault metrics
Net APY
Your expected annual return after all fees. This is the blended rate from all underlying markets.
TVL (Total Value Locked)
Total deposits in the vault. Higher TVL often indicates more trust in the curator's strategy.
Curator
The entity managing the vault's allocation. Curators can be:
- Protocols — Like Robinhood or Gauntlet
- DAOs — Community-governed strategies
- Individuals — Expert yield farmers
Performance fee
Percentage of earnings taken by the curator. A 10% fee means you keep 90% of the yield.
Vault vs. direct market
Example
| Aspect | Vault | Direct Market |
|---|---|---|
| Management | Passive — curator handles it | Active — you manage positions |
| Diversification | Automatic across markets | Manual — you choose |
| Fees | Performance fee to curator | None (just gas) |
| Control | Limited to deposit/withdraw | Full control over position |
When to use vaults
Vaults are ideal if you:
- Want passive income — No active management required
- Trust the curator — Their track record and strategy
- Prefer diversification — Spread risk across markets
- Have limited time — Don't want to monitor positions
When to use direct markets
Direct market deposits are better if you:
- Want maximum yield — No curator fee
- Have specific strategy — Target a particular market
- Want full control — Adjust positions yourself
- Understand the risks — Can manage liquidation risk