> For the complete documentation index, see [llms.txt](https://sparklexai.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sparklexai.gitbook.io/docs/products/earning-vaults.md).
# Earning Vaults
Earning Vaults turn one deposit into a full DeFi income stack. You supply a single asset — ETH, wBTC, USDC, USDT, sDAI, or another supported token — and receive a vault receipt token (a yield-bearing claim). That receipt grows as the vault earns. Send it back any time to withdraw your funds with all accumulated yield.
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Behind the scenes, SparkleX’s central Strategy Engine builds *Super Loop* structures across lending and staking venues. These loops borrow, re-stake, and re-deploy capital to magnify returns — but only when the extra yield justifies the borrow cost and the position stays inside safe loan-to-value limits. Funds never leave the vault contract; no bridge risk, no third-party custody.
### **How It Works**
1. **Deposit.** Choose your asset—ETH, stablecoins, or RWAs—and deposit into the vault.
2. **Convert.** The engine routes your deposit into high-yield assets, such as stETH or USDe.
3. **Loop.** If the expected yield exceeds borrow costs, the vault takes a safe amount of leverage and reinvests. The loop repeats only if APYs and risk thresholds allow.
4. **Adjust.** Every loop is monitored in real time. If yield drops or risk increases, the vault unwinds automatically—no action required.
5. **Compound.** Any rewards—rebases, interest, or emissions—are folded back into your position, boosting long-term yield.
### **Built-In Safeguards**
* **Yield vs. Cost.** The vault only loops when net returns—after gas and fees—beat the threshold.
* **Health Monitoring.** LTV, liquidity, and liquidation thresholds are tracked continuously. Leverage scales down as soon as safety buffers shrink.
* **Open Access.** Withdraw whenever you like. One transaction returns your original deposit plus earned yield.
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Most experienced DeFi users rebalance leverage a few times a week at best. Earning Vaults check the math every block and move the moment it matters. You keep custody the whole time.
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