# Earn

> Put your digital assets to work through curated DeFi vault strategies.

GIWATER Earn makes it easier to put your digital assets to work through curated DeFi vault strategies.

Instead of managing complex DeFi positions across multiple protocols, users can deposit a single asset into a vault and gain exposure to its underlying yield-generating strategy.

Each vault has its own strategy, risk profile, and withdrawal conditions, allowing users to explore different yield opportunities through a unified interface.

## How Earn Works

### Single-Asset Deposits

Each vault accepts a specific asset, such as USDC, USDT or ETH.

Users simply select a vault, enter their deposit amount and confirm the transaction. The vault then allocates the deposited assets according to its underlying strategy.

There is no need to manually manage liquidity positions or interact with multiple protocols.

### Vaults and Shares

GIWATER Earn supports ERC-4626 tokenized vaults, which provide a standardized framework for deposits, withdrawals, and share accounting.

When users deposit assets into a vault, they receive vault shares representing their position.

The value of these shares reflects the vault's underlying assets and performance.

As the strategy generates returns, the value of each share may increase. However, the share value may also decrease if the strategy incurs losses.

### Yield Generation

Each vault follows a specific strategy designed to generate returns from underlying DeFi opportunities.

Depending on the vault, these strategies may involve lending markets, liquidity provision, or other yield-generating mechanisms.

Vault strategies, allocations, and supported protocols vary by provider.

Users should review each vault's strategy, associated risks, and withdrawal conditions before depositing.

## Understanding APY and Vault Performance

The Annual Percentage Yield (APY) represents an estimated annualized return based on a vault's available performance data.

APY is not guaranteed and may change depending on market conditions, strategy performance, and underlying protocol activity.

Past performance does not guarantee future returns.

Not all vaults automatically compound their returns. Yield distribution and compounding mechanisms depend on each vault's strategy.

## Risks and Considerations

Participating in DeFi vaults involves risks, including:

- **Smart Contract Risk:** Vulnerabilities in vault contracts or underlying protocols may result in losses.
- **Strategy Risk:** Returns depend on the performance of the underlying strategy and may be negative.
- **Liquidity Risk:** Withdrawals may be limited or delayed depending on available liquidity.
- **Asset Risk:** Deposited assets may experience depegging or other changes in value.
- **Curator Risk:** Vault strategies managed by external curators depend on their allocation decisions and risk management practices.

Users should evaluate each vault independently before depositing.

For a step-by-step walkthrough, see [How to Earn](/docs/guide/how-to-earn).