Vaults Overview
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 to explore available vaults.
How Vaults Work
- Select a vault — Browse available vaults on Mezo, each with different strategies and yield sources
- Deposit asset — Deposit the required token (e.g., MUSD, BTC) into the vault
- Receive receipt token — Get a token representing your share of the vault
- Strategist optimizes — The vault strategist deploys assets to generate yield according to the described strategy
- Earn — Accumulate yield and optionally stake for additional rewards
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
Mezo Vaults
Vaults built and managed by Mezo, such as the MUSD Savings Rate Vault.
External Vaults
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.
MUSD Savings Rate Vault
The MUSD Savings Rate 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 Rate gauge to earn emissions.
The tradeoff:
- Unstaked sMUSD: You earn your proportional share of vault yield and MUSD interest/fee revenue directly
- Staked sMUSD: 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
This mirrors how LP staking works in pools — stakers give up fee revenue in exchange for mats, 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.
Risks
Strategy Risk
Each vault deploys assets differently. Understand the underlying strategy before depositing — some strategies carry more risk than others.
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.
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.