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# Explainer: How Degen Vaults Work
- URL: https://www.staderlabs.com/blog/explainer-how-degen-vaults-work/
- Published: 2022-03-07T16:24:18.000Z
- Updated: 2026-06-05T04:32:14.000Z
- Description: 1. What are Degen Vaults?
- Author: Dheeraj
- Tags: Stader, #rahul, #medium, Import 2023-10-09 09:03, #staderlabs, #Import 2026-10-28 04:49

***1\. What are Degen Vaults?***

***2\. Who is it For?***

***3\. Immediate Launch Details***

### **1\. What are Degen Vaults?**

Vision for Degen Vaults is to create a Yearn-style platform for yield-farming strategies using LunaX (and other complementary assets).

Each vault is a combination of a smart contract and a strategy associated with it. Strategy is set by a strategy manager who is skilled at developing yield farming strategies.

Strategies can have different characteristics including APR, Risk levels, time locks, static/dynamic strategy etc.

### **2\. Who is it For?**

Degen vaults can be used by any crypto user from a beginner to advanced. It helps simplify the discovery of opportunity and execution of yield farming on LunaX.

- **Discovery:** Identifying the right strategies based on their risk appetite
- **Execution:** Implementing multiple steps across several protocols
- **Monitoring:** Monitoring positions to manage risks/liquidations

Stader aims to solve the above problems by creating a strategies platform called Degen Vaults. Anyone will be able to develop a strategy and create a vault (if governance approved) in the future.

### **3\. Immediate Launch Details**

Degen vaults will be launched in two Phases, with the first phase going live early March.

- The first phase (V1) will have 1–2 vaults with a strategy & lock-in period for funds
1. Users can deposit LunaX into the Degen Vault on the Stader dApp.

2\. All user deposits are locked for a period of time (Eg: 1 month).

3\. Strategies which are a predetermined set of functions will be performed on the deposited LunaX to earn additional yields\* during the Lock-in period.

4\. Once the lock-in period is completed the additional yield is distributed across users & users can then unlock their funds.

- The second phase (V2) will offer additional functionalities on top of V1 with more vaults & features like risk tranching, rebalancing strategies etc.

Watch out for the V1 Launch.