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How It Works

At its core, Concrete simplifies:

  1. Vault Creation: Partners deploy new vaults through the Concrete Factory.
  2. Asset Management: Deposited funds are allocated across yield strategies.
  3. Automated Operations: Fees, yield, and accounting are all updated continuously through on-chain events and automations.

Deposit​

Users deposit a supported base asset (for example, USDC) into a vault. The vault mints ERC-20 shares representing proportional ownership in the total assets under management.

Each vault focuses on a single asset and can deploy those funds across multiple strategies to earn yield.

Yield Generation​

Strategies are smart contracts that interact with DeFi protocols to earn yield.

Each vault can have several strategies — for example, lending on Aave, providing liquidity on Pendle, or holding yield-bearing tokens. The vault’s Allocator role moves funds between strategies safely, ensuring target exposures and limits are respected.

Accounting and Fees​

Vaults automatically track performance and apply management or performance fees. These fees are minted as shares rather than withdrawn in tokens, so vault performance and user balances stay accurate in real time.

Withdrawals​

Withdrawals can happen instantly or in epochs (if the vault uses asynchronous mode).

Async vaults queue requests in time-based batches, allowing the vault to process redemptions efficiently and maintain liquidity control. Instant withdrawals remain available for vaults configured in standard mode.

Behind the Scenes​

Concrete ties vault operations together through automations and on-chain transparency:

  • Automated yield accrual keeps total asset values up to date.
  • Subgraph indexing tracks every vault action, from deposits to yield updates.
  • Role-based access ensures that only authorized operators can move funds or change parameters.
  • Factory deployment and upgrades guarantee that vaults can evolve safely over time.

This automation framework eliminates manual interventions, enabling daily updates that reflect real-time NAV (Net Asset Value) accuracy and institutional-grade accounting.

Example Scenario​

Let’s look at how a typical Earn V2 vault works in practice:

  1. A partner launches a USDC vault through Concrete Build using the Factory. The vault is configured with two strategies: a Pendle yield strategy and a Curve stable pool strategy.
  2. Users deposit USDC, receiving vault shares that represent ownership of the vault’s total assets.
  3. The Allocator moves capital — half into Pendle, half into Curve — balancing allocations as yields change.
  4. Each day, the vault’s automated accounting updates total assets, calculates yield, and applies any management or performance fees.
  5. When users withdraw, the system converts their shares back into USDC, either instantly or after the next epoch (for async vaults).
  6. All activity is recorded on-chain and reflected in the subgraph, giving full transparency to vault operators and depositors.