> For the complete documentation index, see [llms.txt](https://learn.woo.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://learn.woo.org/woofi/earn-vaults.md). # Earn vaults Earn vaults put your assets to work without changing what you hold. Deposit a token, keep your exposure to it, and earn yield paid in the same token. The yield compounds automatically and there is nothing to claim. Vaults are available for crypto assets such as BTC, ETH and stablecoins, and for tokenized stocks through RWA vaults. #### How it works WOOFi is a propAMM. Its market maker quotes prices from live market data using the [sPMM algorithm](https://learn.woo.org/woofi/synthetic-proactive-market-maker), not from the balance of a pool. To fill swaps it needs inventory, and Earn vaults are where that inventory comes from. 1. You deposit a token into its vault and receive a share of the vault. 2. WOOFi's market maker borrows up to 90% of the vault's assets as needed and uses them to fill swaps in the WOOFi liquidity pool. 3. The market maker pays interest to the vault. The interest is added to the vault, so each share is worth more tokens over time. 4. Withdrawals are settled every Monday at 0:00 UTC. Any request before that, can be withdrawn on Tuesday. The vaults also have an instant withdrawal feature, that can be used with a 0.3% fee, but that is limited to 10% of the vault during one settlement period. #### Where the yield comes from All vault yield is borrowing interest paid by WOOFi's market maker. It is not a token incentive or a reward programme. Earn vaults do not place your deposit in third-party protocols, so your yield does not depend on any outside platform. The WOOFi liquidity pool is the only address allowed to borrow from a vault. #### Rates The borrow rate is set by a formula. Your yield is the borrow rate applied to the share of the vault that is lent out, so it moves with deposits and trading demand: * As deposits grow, a smaller share of the vault is lent out and the yield comes down slightly. * As trading demand grows, more of the vault is borrowed and the yield goes up. WOOFi may raise rates for limited periods, for example during promotions. Over time, yield tends to settle around 4%-9% APY. The live APY for every vault is on the [Earn page](https://woofi.com/earn). #### RWA vaults RWA vaults are Earn vaults for tokenized stocks. A tokenized stock is a token that tracks the price of a real share. RWA vaults work the same way as every other Earn vault, and a deposit earns in three ways at once: * **Share price.** Your deposit stays in the stock token, so it moves with the share price. * **Dividends.** When the underlying share pays a dividend, it is reflected in the token automatically. * **Vault yield.** The vault pays you more of the same token and adds it to your position. The first RWA vaults are NVDAB (NVIDIA) and SPCXB (SpaceX) on BNB Chain. More will be added as new tokenized stocks are listed on WOOFi. Tokenized stocks may not be available in every country. See the [Terms of Use](https://learn.woo.org/legal/terms-of-use). #### Settlement cycle Each vault runs on a 7-day cycle that starts at 0:00 UTC every Monday. When a cycle ends, WOOFi's market maker has 24 hours to repay the amount needed to cover that cycle's withdrawal requests. The next cycle begins as soon as settlement completes. #### Withdrawals * **Standard withdrawal.** There are two steps: request, then withdraw. You can request any amount with no fee at any time, except while the vault is settling. Your tokens are ready to withdraw when the next settlement completes, which is no later than 0:00 UTC Tuesday and usually within a few hours of the cycle ending. * **Instant withdrawal.** At the start of each cycle the vault sets aside 10% of its assets for instant withdrawals. You can withdraw immediately within the weekly limit for a 0.3% fee. The limit resets at the start of each cycle. #### How the market maker manages price risk On most DEXs, liquidity providers carry impermanent loss: the pool ends up holding more of the asset that fell in price. In Earn vaults that risk sits with WOOFi's market maker, not with you. The market maker stays market neutral by hedging every trade. When a swap is executed on WOOFi, for example USDC for HYPE, the WOOFi liquidity pool has sold HYPE for USDC. Once the transaction is final onchain, the market maker buys the same amount of HYPE on a centralized exchange. Its combined position onchain and on exchanges stays neutral, so it can return the borrowed tokens at settlement even when the onchain pool is out of balance.