# How Do Concrete Vaults Actually Work?

**Published by:** [nguyentruonggiang](https://paragraph.com/@nguyentruonggiang--/)
**Published on:** 2026-03-24
**URL:** https://paragraph.com/@nguyentruonggiang--/how-do-concrete-vaults-actually-work

## Content

Most people think DeFi is about chasing yield. But the truth is: DeFi is about how capital flows. And Concrete vaults are designed to control that flow. 1⃣ What Happens After You Deposit? When you deposit into a Concrete vault, your funds don’t just sit there. They enter a system. A system that immediately begins working: allocating capital deploying into strategies preparing for yield generation At the same time, you receive vault shares — your proof of ownership. You are no longer holding idle capital. You are participating in a live capital system. 2⃣ Shares Are Static — Value Is Not Here’s something important: Your number of shares usually doesn’t change. But their value does. This is where eRate comes in. Instead of increasing your token balance directly, the vault increases the value of each share. 👉 Think of it like owning stock: You don’t get more shares But each share becomes more valuable That’s how growth happens. 3⃣ NAV: The Pulse of the Vault If eRate is the price per share… Then NAV is the heartbeat of the vault. NAV reflects: total capital active positions accumulated yield When strategies perform well → NAV increases. When NAV increases → eRate rises. When eRate rises → your position grows. Everything is connected. 4⃣ Continuous Capital Deployment One of the biggest advantages of Concrete vaults: Capital is always working. Instead of sitting idle: funds are deployed rewards are harvested capital is reallocated This is called: onchain capital deployment And it’s what separates vaults from manual DeFi. 5⃣ Why This Matters Without vaults: users react slowly opportunities are missed capital becomes inefficient With vaults: execution is continuous decisions are systematic capital remains productive 6⃣ The Bigger Picture Concrete vaults are not just tools. They are infrastructure. They turn DeFi from: manual actions → automated systems And that’s how DeFi scales. Mental Model Vault = engine Shares = ownership eRate = price per unit NAV = total system value Flow = continuous optimization 🚀 Explore Concrete at app.concrete.xyz

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