Protocol

High-level mechanics for the Nest Protocol

As a user, you will experience that all vaults, regardless of their composition, adhere to the same set of high-level mechanics:

1

You make a deposit

Every vault is yield-bearing by design, because the underlying assets are yield-bearing too. Vaults have different compositions and deposit conditions, but it all starts with a deposit.

2

You receive vault tokens

When you make a deposit, you receive vault tokens at the set exchange rate. Whenever yield accrues at the vault level and underlying assets increase in value, so do vault tokens.

3

You earn when you redeem vault tokens

Whenever you want to realize your earnings, you redeem vault tokens, subject to vault withdrawal conditions, in return for stablecoins based on the vault token value.