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Vault Meaning

A vault traditionally refers to a secure room or container used by banks and financial institutions to store cash, precious metals, and documents. In the digital realm, a vault is a secure storage solution for sensitive data or assets.

For cryptocurrencies, vaults can refer to cold storage solutions that require multiple signatures or time delays to withdraw funds, providing enhanced security against hacks and accidental transfers. Some custodial services offer vault products where withdrawals are subject to multi-layer approval processes and time locks.

Decentralised vault protocols in DeFi allow users to deposit assets and earn yield through automated strategies, though these carry smart contract risk.

Regardless of context, the term vault implies heightened security and restricted access to protect valuable assets.

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