Vault staking refers to a method of earning rewards by locking up assets within a smart contract, often called a vault. Users deposit their tokens into the vault, allowing them to participate in various activities such as lending, liquidity provision, or yield farming.In exchange for locking their assets, participants receive rewards, usually in the form of additional tokens or transaction fees generated by the vault’s activities. This approach helps improve liquidity and stability within the platform while also providing users with a potential source of passive income.Vaults can vary in terms of risk and return, depending on the strategy employed. Some may focus on stable assets with lower returns, while others may pursue higher-risk investments for greater rewards. Before participating, users should understand the associated risks, including the potential for loss or reduced liquidity. Overall, vault staking can be an effective way to utilize idle assets while contributing to the broader ecosystem’s growth and efficiency.