# Smart Vaults ## First, what is a *Vault*? A vault is a smart contract that pools and routes user funds via preprogrammed strategies designed to maximize returns on deposited assets. Vaults are automated and save on gas fees, making them particularly useful for the smaller liquidity provider.\ \ Vaults were created as a response to yield farming and liquidity mining that made searching for the highest yield much more complex than just switching between different lending protocols. DeFi vaults are not necessarily yield farming strategies. The underlying strategy may vary, but the principle remains the same. ## What is a *Smart Vault?* Smart Vaults (formerly Sweet Vaults) are self-custodial, permissionless, and automated asset strategies that generate yield on single-asset crypto deposits. {% hint style="info" %} **Smart Vault Fees** * Deposit: 0% * Withdrawal: 0% * Performance: Dynamic * Management: Dynamic {% endhint %} ## Arbitrage your rewards veVCX holders can boost the amount of oVCX rewards they receive from Smart Vault gauges. Read [Boosting](/tokenomics/vcx/boost.md) under Tokenomics to learn how to boost. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.vaultcraft.io/products/smart-vaults.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.