> ## Documentation Index
> Fetch the complete documentation index at: https://docs.privy.io/llms.txt
> Use this file to discover all available pages before exploring further.
# Overview
> Put wallet balances to work with Privy integrations to yield-generating ERC-4626 vaults.
Earn enables apps to generate yield on wallet balances via DeFi lending protocols. Deposit into vaults, withdraw at any time, and track positions in real time, all with a few API calls. Privy simplifies vault deployment, smart contract interactions, and onchain execution.
## 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](/wallets/actions/overview#gas-management) enabled, Privy automatically sponsors gas for earn deposit, withdraw, and incentive claim actions
## Supported vaults
Earn is built on the [ERC-4626](https://eips.ethereum.org/EIPS/eip-4626) tokenized vault standard and supports multiple protocols through a single API. [Morpho](https://morpho.org/) vaults curated by [Gauntlet](https://www.gauntlet.xyz/) and [Steakhouse](https://steakhouse.financial/) are available today in the Privy Dashboard.
Morpho, Aave, and Kamino vaults across all supported chains are available on request. Contact [sales@privy.io](mailto:sales@privy.io) to enable your preferred vault.
Do your own research when selecting a vault. You can find more information on the vaults supported
in the Dashboard, including details on the liquidity and allocation below:
* [Gauntlet USDC Prime (USDC on
Base)](https://app.morpho.org/base/vault/0x050cE30b927Da55177A4914EC73480238BAD56f0/gauntlet-usdc-prime)
* [Steakhouse Prime Instant (USDC on
Base)](https://app.morpho.org/base/vault/0xbeef0e0834849aCC03f0089F01f4F1Eeb06873C9/steakhouse-prime-instant)
### Earn on real world assets
Privy also supports earning on real world assets (RWAs) today. Contact [sales@privy.io](mailto:sales@privy.io) to explore options on Tempo and other chains.
## How DeFi yield is generated
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.
### How yield accrues
ERC-4626 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.
Your app should make clear to end users that yield is generated via a DeFi protocol independent
from the wallet provider. Users keep full control of their assets and should explicitly direct the
deposit action.
## Revenue sharing
Privy helps deploy a fee wrapper that wraps the underlying Morpho vault. Through your app, users direct deposits into this fee wrapper, and the fee wrapper captures a configurable portion (up to 50%) of the accrued yield as shares in a designated admin wallet. Your app can withdraw those shares at any time to collect fees.
## Next steps
Deploy a fee wrapper and configure your vault in the Privy Dashboard.
A working Next.js app with end-to-end deposit and withdraw flows.
Looking for the legacy Morpho integration guide? It's still available [here](/recipes/legacy/morpho-guide).
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.