Tiered Yield Vaults
Tiered yield vaults offer multiple investment tiers, each with a different yield rate and lock period. This structure rewards longer commitments with higher returns while providing flexibility for investors to choose a tier that matches their liquidity preferences.
How They Work
- Multiple yield tiers — Each vault offers several tiers (commonly up to 10), with progressively higher yields for longer lock periods. Short-term tiers may offer lower rates, while long-term commitments can earn significantly higher returns.
- Flexible duration selection — Investors choose their preferred tier at the time of investment. Tiers typically range from short-term (60 days) to long-term (24 months or more).
- Simple interest — Like fixed yield vaults, tiered vaults calculate returns using simple interest on the principal amount.
- Independent maturity — Each tier operates independently, meaning investments at different tiers mature on their own schedule.
Example Tier Structure
Tier | Lock Period | Yield Range |
|---|---|---|
Short-term | 60–90 days | Lower end of scale |
Mid-term | 6–12 months | Moderate returns |
Long-term | 18–24 months | Highest available yield |
Best Suited For
Investors who want to optimize their return based on how long they are willing to lock their capital. Tiered vaults are particularly appealing for those building a laddered investment strategy across multiple time horizons.