> For the complete documentation index, see [llms.txt](https://elys-network.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://elys-network.gitbook.io/docs/core-features/earn/vaults.md).

# Vaults

## <mark style="color:blue;">**Overview**</mark>

**Vaults** on Elys Network allows users to deposit assets to serve as lending pools. Users borrow from these pools to open [Leverage LP](/docs/core-features/leverage-lp.md) positions.&#x20;

<figure><img src="/files/EVqSN1fk1ALMWH0Y84XF" alt=""><figcaption></figcaption></figure>

By depositing assets to the vaults, users lend assets to borrowers to open Leverage LP positions. Open Leverage LP positions pay interest to the vault, starting at 12% APR and can go as high as 30% based on amount borrowed relative to the vault size. Additionally, some vaults will be incentivized by governance for bonus EDEN rewards. The maximum borrow for Leverage LP is a governance parameter, currently set to 35% for a liquidity pool.

## <mark style="color:blue;">**How It Works**</mark>

### <mark style="color:blue;">**USDC Vault**</mark>

**USDC Vault** does not require any bonding period.

By depositing USDC, you actively participate in the [<mark style="color:blue;">Leverage LP</mark>](/docs/core-features/leverage-lp.md) feature. Staking USDC essentially acts as a form of lending:

* You lend your USDC via the vault.
* Users of Leverage LP borrow these funds, and in return, **they pay fees that are transformed into rewards for you, along with bonus rewards, paid as:**
  * USDC from fees (claimable)
  * EDEN (as applicable) from bonus rewards (claimable)

### <mark style="color:blue;">**Other Token Vaults**</mark>

**Similarly these vaults do not have a bonding period**.

By depositing Tokens into these vaults, you actively participate in the [<mark style="color:blue;">Leverage LP</mark>](/docs/core-features/leverage-lp.md) feature, lending to borrowers to open Leverage LP positions.

* Example: You deposit your wBTC to the vault.
* Users of Leverage LP borrow these, and in return, **they pay fees that are transformed into rewards for you paid as:**
  * USDC from fees (claimable)
  * EDEN (as applicable) from bonus rewards (claimable)
  * Vault token (example: wBTC) from open interest, added to your existing vault balance (can be withdrawn any time)