> ## Documentation Index
> Fetch the complete documentation index at: https://mintlify.com/mezo-org/documentation/llms.txt
> Use this file to discover all available pages before exploring further.

# Vaults

> Automated MUSD and bitcoin yield strategies through Mezo vaults

Mezo Vaults are yield-generating strategies that deploy your assets across DeFi to earn returns. Deposit into a vault, receive a receipt token representing your position, and let the strategist optimize for yield.

Visit [mezo.org/earn/vaults](https://mezo.org/earn/vaults) to explore available vaults.

## How Vaults Work

<Steps>
  <Step title="Select a Vault">
    Browse available vaults on Mezo, each with different strategies and yield sources
  </Step>

  <Step title="Deposit Asset">
    Deposit the required token (e.g., MUSD, BTC) into the vault
  </Step>

  <Step title="Receive Receipt Token">
    Get a token representing your share of the vault
  </Step>

  <Step title="Strategist Optimizes">
    The vault strategist deploys assets to generate yield according to the described strategy
  </Step>

  <Step title="Earn">
    Accumulate yield and optionally stake for additional rewards
  </Step>
</Steps>

## Understanding the Vault Table

| Column         | What It Means                                                |
| -------------- | ------------------------------------------------------------ |
| **Vault**      | Name and description of the vault strategy                   |
| **TVL**        | Total Value Locked — the total assets deposited in the vault |
| **APY**        | Annual Percentage Yield — your estimated yearly return       |
| **Reward**     | The token(s) you earn from the vault                         |
| **Strategist** | The team or protocol managing the vault strategy             |

## Vault Types

<CardGroup cols={2}>
  <Card title="Mezo Vaults" icon="shield-halved">
    Vaults built and managed by Mezo, such as the MUSD Savings Vault. These are native to the Mezo ecosystem.
  </Card>

  <Card title="External Vaults" icon="arrow-up-right-from-square">
    Vaults built by partner protocols (e.g., August, UWI, Upshift) that deploy assets into their own strategies. These can also appear as featured banners on the vaults page and link out to the partner's platform for deposits.
  </Card>
</CardGroup>

## MUSD Savings Vault

The MUSD Savings Vault is Mezo's native savings product for MUSD holders.

### How it Works

* Deposit MUSD to earn a share of protocol fees generated by MUSD borrowing activity
* Yield comes from MUSD interest, issuance fees, refinance fees, and other protocol fees accumulated each epoch
* You receive sMUSD (a receipt token) representing your share of the vault

### Vault Details

| Parameter            | Value |
| -------------------- | ----- |
| Deposit token        | MUSD  |
| Receipt token        | sMUSD |
| Strategist           | Mezo  |
| Withdrawal fee       | None  |
| Withdrawal time-lock | 0h    |

### Staking sMUSD in the Gauge

You can optionally stake your sMUSD receipt token in the MUSD Savings gauge to earn emissions.

**The tradeoff:**

<CardGroup cols={2}>
  <Card title="Unstaked sMUSD" icon="coins">
    You earn your proportional share of vault yield and MUSD interest/fee revenue directly
  </Card>

  <Card title="Staked sMUSD" icon="arrow-trend-up">
    Your portion of interest and fee revenue is redirected to veBTC voters on the gauge. In exchange, you earn emissions based on how many votes the gauge receives
  </Card>
</CardGroup>

This mirrors how LP staking works in pools — stakers give up fee revenue in exchange for emissions, while voters earn the redirected fees.

The MUSD Savings Rate gauge competes for votes alongside LP pool gauges. These are collectively called "staking gauges" — a vote allocated to the savings rate gauge cannot also be allocated to an LP gauge.

## How to Use Vaults

<Steps>
  <Step title="Connect Wallet">
    Visit [mezo.org/earn/vaults](https://mezo.org/earn/vaults) and connect your wallet
  </Step>

  <Step title="Choose a Vault">
    Browse available vaults and review:

    * Strategy description
    * Current APY
    * TVL and capacity
    * Strategist information
  </Step>

  <Step title="Deposit">
    * Click on your chosen vault
    * Enter the amount to deposit
    * Approve the token spending (if first time)
    * Confirm the deposit transaction
  </Step>

  <Step title="Receive Receipt Token">
    Your vault receipt token (e.g., sMUSD) is minted to your wallet
  </Step>

  <Step title="Monitor and Claim">
    * Track your position's performance
    * Claim rewards when available
    * Withdraw by burning receipt tokens
  </Step>
</Steps>

## Risks

<Accordion title="Strategy Risk">
  Each vault deploys assets differently. Understand the underlying strategy before depositing — some strategies carry more risk than others.
</Accordion>

<Accordion title="Smart Contract Risk">
  Vaults interact with multiple smart contracts. While Mezo vaults are audited, all smart contracts carry inherent risk. Only deposit amounts you're comfortable with.
</Accordion>

<Accordion title="External Vault Risk">
  External vaults are managed by third-party protocols. Mezo does not control these strategies. Review the partner's documentation and audits before depositing.
</Accordion>

<Note>
  Always conduct your own research and only deposit amounts you're comfortable with. Past performance does not guarantee future results.
</Note>