# Vaults Overview

_Automated MUSD and bitcoin yield strategies through vaults_

_Source: https://mezo.org/docs/users/mezo-earn/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.

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## How Vaults Work

1. **Select a vault** — Browse available vaults on Mezo, each with different strategies and yield sources
2. **Deposit asset** — Deposit the required token (e.g., MUSD, BTC) into the vault
3. **Receive receipt token** — Get a token representing your share of the vault
4. **Strategist optimizes** — The vault strategist deploys assets to generate yield according to the described strategy
5. **Earn** — Accumulate yield and optionally stake for additional rewards

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## 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 |

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## Vault Types

### Mezo Vaults

Vaults built and managed by Mezo, such as the [MUSD Savings Vault](/docs/users/mezo-earn/vaults/musd-savings-vault) and [USDC Lending Vault](/docs/users/mezo-earn/vaults/usdc-lending-vault).

### External Vaults

The [Ditto MUSD Savings Vault](/docs/users/mezo-earn/vaults/ditto-musd-savings-vault) accepts MUSD on Mezo and issues dMUSD. Ditto Network handles swaps, bridging, and an initial allocation to Spark Savings on Ethereum. Redemptions return MUSD on Mezo and are processed asynchronously.

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.

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## 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.