Moshood Usman1 min read·Just now--
Most people deposit into DeFi vaults, see shares, eRate, and NAV… and still don’t fully get what’s happening.
Here’s the simple breakdown for Concrete vaults:
When you deposit, you receive vault shares. Think of it like owning a slice of a pool. The NAV (Net Asset Value) is the total value of that pool, while the eRate is the value of each share. As the vault earns yield, NAV increases, and your share becomes more valuable over time.
This is where automated compounding comes in. The vault doesn’t just sit idle. It actively deploys capital through onchain capital deployment, rebalances strategies, and captures better opportunities. That’s what makes it managed DeFi, not passive holding.
Time matters. Like a growing system, the longer you stay, the more compounding and strategy optimization work in your favor. Short-term moves miss the real benefit.
Simple model:
Vault = pooled capital
Shares = your ownership
NAV = total value
eRate = share value
Time = growth
Management = optimization
Explore Concrete at app.concrete.xyz
