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DeFi vaults allocate deposited assets into onchain lending markets where borrowers pay interest to access liquidity. That interest flows back to the vault, increasing the value of deposited shares over time. Vault strategies are managed by curators who determine how capital is allocated across markets to balance risk and return. APY fluctuates based on borrower demand, market utilization, and the curator’s allocation strategy. Some vaults also distribute additional token incentives on top of the base lending yield. All lending and borrowing happens onchain through non-custodial smart contracts. Earn

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Capabilities

  • Deposit and withdraw assets into yield vaults with a single API call per operation
  • Query positions to display real-time holdings, accrued yield, and vault shares
  • Collect fees from a configurable share of the yield generated through your app
  • Sponsor gas for your users; if your app has gas sponsorship enabled, Privy automatically sponsors gas for earn deposit, withdraw, and incentive claim actions
  • Spend from vault balances with stablecoin-backed cards, for approved card programs

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How DeFi yield accrues

DeFi vaults track balances in shares. A deposit converts assets into shares at the current share price. As interest accrues, the share price rises - each share redeems for more of the underlying asset. Yield accrues passively with no claiming or compounding required, and withdrawals return the original deposit plus earned yield. Example: a wallet deposits 1,000 USDC at a share price of 1.00 and receives 1,000 shares. When the share price reaches 1.05, those shares are worth 1,050 USDC. No new shares are minted; existing shares appreciate. Vault shares are standard ERC-20 tokens and can be transferred between wallets like any other token.

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Direct protocol access

Apps can deposit directly into Morpho and Aave vaults. The Privy Dashboard offers a select set of vaults for self-serve setup. To use a Morpho or Aave vault that isn’t listed, contact [email protected] and Privy will enable it for your app. See Setting up vaults to get started.

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Vault aggregation

Vault aggregators can allocate a single deposit across several yield sources to optimize returns. Vault aggregation is available upon request, as aggregators craft bespoke strategies for each developer. Contact [email protected] to get started with Tempo Earn or Veda vaults for other EVM chains. Developers can integrate Tempo Earn and Veda vaults using the same Earn API endpoints for deposit, withdraw, and getting balance details.

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Revenue sharing

Your app can earn revenue by keeping a configurable share of the yield generated by its users’ deposits. An admin wallet your app controls receives the fees. See revenue sharing for how to configure and collect fees across providers.
Privy does not control DeFi vaults or underlying protocols. Vault information is provided for reference only and may change or be inaccurate. Earnings are generated from third-party vaults and are not guaranteed. Using vaults involves risk, including loss of funds. These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to engage in any specific transaction. You are responsible for evaluating vaults at your own discretion. Privy does not provide investment, financial, legal, or tax advice.