Using vault markets
Using vault markets is a seamless experience while all the actions are completed in 1 transaction.
When a user supplies the base asset, for example, USDC, it is wrapped into yvUSDC and sent to the Vault Market. While the USDC is in yvUSDC form, it continues to generate yield. Upon withdrawal, the Vault Market unwraps yvUSDC back into USDC, which is then sent to the user.
During the borrowing process, the borrowed asset is initially taken out in the form of vault shares. It is then unwrapped into the target asset. For instance, yvUSDC is unwrapped to become USDC. Upon repayment, the USDC is wrapped back into yvUSDC and repaid to the market.
Last modified 3mo ago