Smart Vaults are designed to allow investors to deposit a set token into the smart contract, from which set tokens are bought and held on the contract.
The process is relatively simple:
- The user has to approve deposit token and then select the amount to deposit using deposit() function This will buy preset tokens in proportion and issue the user with Vault Tokens
- As the tokens rise/fall in price, the index of the vault (TVL / Total Tokens Issued) increases or falls
- The user can withdraw any amount at any given time