Vaults

Wasabi vaults use the ERC-4626 tokenized vault standard. ERC-4626 is a standard that optimizes and unifies the technical parameters of yield-bearing vaults.

To deposit into Wasabi LP Pools, the LP deposits tokens into the vault to buy vault shares. Deposited tokens are used to provide liquidatable loans to traders. Once a position is closed or liquidated, the vault collects the interest, increasing the price per vault share. A loss will be recorded in the unlikely event of a late liquidation, decreasing the share price.

By selling their shares back to the pool, LPs can claim the interest earned and the original deposit amount.