> For the complete documentation index, see [llms.txt](https://docs.tydro.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tydro.com/ii.-core-concepts/lending-vaults.md). # Lending Vaults Managed capital allocation to various lending markets Vaults let managers run strategies and deploy capital on top of Tydro markets. This page describes the vault types Tydro supports, defined by what they do and who can control them. A vault follows the ERC-4626 standard or an equivalent. A depositor supplies an asset, the vault puts it to work under a manager, and each share tracks the depositor's portion of the result. The standard is flexible, so a clear description of each vault's function, permissions, and access control matters the most. ### Vault types * **Lending vaults.** A curator and allocator move capital across whitelisted lending markets seeking a target risk-adjusted return. Suited to depositors who want diversified exposure across markets rather than managing positions themselves. See [Morpho Vaults](https://morpho.org/blog/vaults-the-future-of-noncustodial-finance/) for a conceptual overview. * **Manager-directed vaults.** A manager holds defined roles over the asset, strategy, and venue, within a single or multi-strategy mandate. The role structure is explicit, so depositors can see what the manager can and cannot do. * **Vault-held assets.** The manager completes KYB and acquires assets or securities through an entity or SPV, then represents them in the vault. This is how real-world and off-chain exposure reaches on-chain depositors under a defined legal structure. Tydro supports a variety of vault products, including Sentora's Kraken Earn vaults. {% hint style="info" %} External vaults that allocate to Tydro should be independently diligenced by investors. Using a permissionless market for yield is not an endorsement from Tydro of the vault manager or strategy. {% endhint %} ### Permissions and control Every vault runs on role-based access control. Each role, whether curator, allocator, or manager, has a defined set of actions and clear limits. The Tydro app states relevant information for each vault, so depositors know who controls their capital and what those parties are able to do with it. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.tydro.com/ii.-core-concepts/lending-vaults.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.