> For the complete documentation index, see [llms.txt](https://docs.zestprotocol.com/start/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.zestprotocol.com/start/stacks-vaults/introducing-stacks-vaults.md).

# Introducing Stacks Vaults

Learn how Stacks Vaults automate yield strategies using Zest Protocol’s lending markets.

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**Stacks Vaults** are automated yield strategies built on top of Zest Protocol's lending markets on Stacks. Users deposit a single asset into a vault, and the vault executes a yield strategy on their behalf: no position management, no rebalancing, no juggling markets.

Stacks Vaults mark the evolution of Zest Protocol from a lending market into yield infrastructure. Every yield source on Stacks becomes a strategy that can be automated and offered as a single-deposit product.

The first vault is the levered Bitcoin Staking vault (zvstBTC), built around stBTC, the liquid Bitcoin Staking token from Stacking DAO.

## What Is a Stacks Vault?

A Stacks Vault packages a strategy that would otherwise require active management into a single-deposit product.

When users deposit, they receive shares representing their proportional position in the vault. As the strategy generates returns, those returns are reflected in the value backing each share rather than distributed as separate rewards.

Each vault has its own supported assets, strategy, withdrawal process, fees and risk parameters.

## How They Work

{% stepper %}
{% step %}

## Deposit

Deposit an asset and receive vault shares priced at the current share price.
{% endstep %}

{% step %}

## Hold

Hold the shares while the vault's strategy runs and compounds, and your share price rises over time.
{% endstep %}

{% step %}

## Withdraw

Withdraw by redeeming your shares back into the underlying asset.
{% endstep %}
{% endstepper %}

The yield shows up as a rising share price rather than as separate reward payouts, so your position compounds automatically with nothing to claim.

## Shared Design Principles

### Value reflected in share price

Each vault calculates its net asset value from the assets it holds minus its liabilities. Dividing that value by the total number of shares determines the current share price.

Returns accrue through that share price, so users do not need to claim separate strategy rewards.

### Separated custody and strategy logic

Stacks Vaults separate the contracts holding strategy assets from the contracts responsible for execution. This allows strategy logic to be maintained without requiring users to migrate their positions whenever that logic changes.

The vault contracts restrict how deposited assets can be used. Each vault’s technical documentation describes its permitted actions, administrative controls and withdrawal process.

{% hint style="info" %}
Stacks Vaults are fully non-custodial. The vault contract can only execute strategy actions on Zest Protocol's lending markets. It cannot move funds anywhere else, and only the user can withdraw their position.
{% endhint %}

### Risk controls

Vaults launch with strategy-specific controls such as deposit caps, position limits, onchain timelocks and emergency pause functions. These controls reduce risk but do not eliminate smart-contract, market, liquidity or liquidation risk.

## Available Vaults

The [zvstBTC Vault](/start/stacks-vaults/zvstbtc-vault.md) is a levered Bitcoin Staking strategy. It posts stBTC as collateral on Zest Protocol, borrows sBTC against it, stakes the borrowed sBTC into more stBTC and repeats within its configured risk limits.

The strategy targets a higher return than holding stBTC without leverage. Its realised return depends on Bitcoin Staking yield, borrowing costs, utilisation, fees and market conditions.

Each vault has its own dedicated documentation covering how it earns, how to deposit and withdraw, and how it's built.

{% hint style="info" %}
**Stacks Vaults and Bitcoin Collateral Vaults are separate Zest Protocol products.**

Stacks Vaults automate strategies using Zest Protocol’s markets on Stacks. Bitcoin Collateral Vaults let holders use BTC as collateral while it remains in a vault on Bitcoin, with value moving to any chain that can read a proof.
{% endhint %}