A . B . C . D . E . F . G . H . I . J . K . L . M . N . O . P . Q . R . S . T . U . V. W . X . Y . Z

Vault

A vault is a sort of blockchain architecture that is used for storing, depositing, and withdrawing various types of cryptocurrency assets, particularly in decentralized finance (DeFi) protocols.

A DeFi system, for example, must automatically exchange the proper quantity of assets between multiple parties using smart contracts when a user stakes, loans, borrows, or mints distinct crypto assets.

During times of heavy purchase or sell pressure, a vault mechanism may be utilized to maintain a 1:1 stablecoin peg with fiat currencies by adding and deleting various cryptocurrencies (typically baskets of currencies) and stablecoins.


Related content

(Visited 5 times, 1 visits today)
© Cryptopress. All rights reserved.