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Deposit to a vault

Learn how to deposit assets into Naga vaults to start earning yield.

Before You Start​

Make sure you have:

  • A connected Web3 wallet
  • Sufficient balance of the token you want to deposit
  • Enough native tokens (ETH, etc.) for gas fees

Step-by-Step Guide​

Step 1: Navigate to Earn Page​

  1. Go to Naga Earn
  2. You'll see a list of available vaults

Step 2: Choose a Vault​

Browse the available vaults and consider:

  • APY: Higher APY means higher potential returns
  • TVL: Higher Total Value Locked indicates more user trust
  • Asset: Choose a vault for an asset you already own or want to acquire

Click on a vault to view its details.

Step 3: Review Vault Details​

Before depositing, review:

  • Current APY and historical performance
  • Collateral of the vault
  • Your current position (if you've deposited before)

Step 4: Enter Deposit Amount​

  1. Ensure the "Deposit" tab is selected
  2. Enter the amount you want to deposit
  3. Use the "Max" button to deposit your entire balance
  4. The interface will show:
    • Amount of vault shares you'll receive
    • Your new total position
    • Updated APY calculations

Step 5: Deposit​

  1. Click the "Deposit" button
  2. Review the transaction details in the confirmation modal:
    • Deposit amount
    • Shares to receive
    • Estimated gas fee
  3. Confirm the transaction in your wallet
  4. Wait for the transaction to be confirmed

Step 6: Verify Your Deposit​

After the transaction confirms:

  1. Your position will be updated in the vault details
  2. You'll start earning yield immediately
  3. Your vault shares represent your ownership of the vault

Understanding Vault Shares​

When you deposit, you receive vault shares:

  • Shares represent ownership: Your shares represent your portion of the total vault
  • Shares appreciate: As the vault earns yield, the value of each share increases
  • Redeemable anytime: Exchange shares back for the underlying asset when withdrawing

Example​

If you deposit 1,000 USDT into a vault:

  • You might receive 950 vault shares (the exchange rate depends on the vault's current performance)
  • As the vault earns yield, those 950 shares might be worth 1,100 USDTlater
  • When you withdraw, you trade your shares back for USDT

Best Practices​

Start Small​

If you're new to a vault, consider depositing a small amount first to understand how it works.

Diversify​

Don't put all your funds in a single vault. Spread your deposits across multiple vaults to reduce risk.

Monitor Performance​

Regularly check your vault's performance and adjust your strategy if needed.

Consider Gas Fees​

For small deposits, gas fees can eat into your returns. Consider depositing larger amounts less frequently.

Understand the Strategy​

Read about how each vault generates yield so you understand the associated risks.

Common Issues​

Insufficient Balance​

Ensure you have enough tokens plus extra for gas fees. Keep some native tokens (ETH, etc.) for transaction fees.

Transaction Failed​

  • Check that you have enough gas
  • Verify the vault hasn't reached its deposit cap
  • Try increasing the gas limit if the transaction is failing

Fees​

  • Gas Fees: Network transaction costs paid to validators

No deposit or withdrawal fees. You earn yield based on vault performance and your ownership percentage.

Next Steps​

  • Learn how to Withdraw when you want to withdraw
  • Understand the Risks associated with vault deposits
  • Explore Borrowing options to leverage your deposits