How Do Concrete Vaults Actually Work?

--

Let’s imagine a simple situation: you go to Concrete vaults, make a deposit and suddenly some kind of shares appear… Your balance starts growing, you see numbers like eRate, NAV. And a question appears: what’s going on?

So let’s figure this out!

When you deposit money into a vault, you’re not just storing it there. You’re receiving a share of the overall pool. It’s like a common fund: all the funds are pooled and put to work together.

Shares — your part of this pool.

eRate — the price of one share.

Important: the number of your shares usually doesn’t change. Instead, their price is growing.

Why? Because the pool becomes bigger.

Here the NAV appears — it’s the total value of all assets in the vault. When the NAV grows, the pool grows too, and each share becomes more expensive.

Where the growth comes from?

Concrete is managed DeFi, the funds are actively used:

- capital is distributed across strategies

- positions are changed

- income is reinvested

This is the onchain capital deployment and automated compounding — money constantly works and brings in new income.

The time factor is important here.

Vault — isn’t about quick deals. Strategies take time to produce results, and income is amplified through accumulation. The longer you stay in the vault, the stronger the compounding effect becomes.

Ultimately, it all boils down to a simple model:

Vault — the shared pool

Shares — your share

eRate — the price of a share

NAV — the total value of the entire pool

Time — the main growth factor

You make money not just from income, but from how that income is managed and accumulated.

Explore Concrete at app.concrete.xyz (https://concrete.xyz/).