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STVs vs. DeFi Vaults
"Vaultification" is a DeFi trend that has been steadily growing since 2020.
In real life, vaults are secure storage containers where users deposit assets or other valuables. In DeFi terms, vaults also securely store assets, but they also allow additional behind-the-scenes maneuvering of funds for the purpose of earning returns on them. A number of protocols (featured in the image above) have launched since the days of Yearn Finance.
STFX is taking the concept of on-chain vaults and applying it to a new innovation that we call STVs: non-custodial, active asset management vaults that live for the duration of one trade. STVs allow users to invest in singular trades.
In comparison to previous DeFi vault offerings, STVs aim to be shorter in duration and capture higher volatility.
Last modified 6mo ago