![]() For community-made strategies such as the ETH strategy, currently, 10% of this fee goes to the strategy creator. On top of that, some profit-earning transactions will result in a 5% fee to subsidize the gas costs. The amount that is withdrawn is the initial amount that was put in, plus the pool yield that was earned, minus the fees. So farmed tokens and accrued fees are sold for the main asset in the vault. One of the important rules when it comes to Vaults or Yearn protocol, in general, is the fact that you always withdraw the same asset that was initially deposited. Similarly to the standard Yearn protocol, when tokens are deposited to a vault the user receives their corresponding yTokens that can be redeemed for the underlying tokens. You can learn more about yield farming and liquidity mining here. Yearn Vaults were created as a direct response to yield farming and liquidity mining that made searching for the highest yield much more complex than just switching between different lending protocols. Each vault follows a strategy that is voted in by the Yearn community. This can involve supplying collateral and borrowing other assets such as stable coins, providing liquidity and collecting trading fees or farming other tokens and selling them for profit. In fact, most vault strategies can do multiple things to maximise the returns. Vault strategies are more active than just lending out coins like in the standard Yearn protocol. Yearn Vaults, in essence, are pools of funds with an associated strategy for maximising returns on the asset in the vault.
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