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Users provide liquidity to yield vaults on platforms like Yearn, Beefy, or Aura by depositing tokens (often LP tokens from other protocols) into automated strategy contracts. These vaults automatically compound rewards and optimize yield farming strategies, creating complex on-chain activity on your behalf. In return, you receive vault tokens representing your share. This demonstrates sophisticated, "hands-off" capital management and deep engagement with the DeFi ecosystem. For airdrops, both the vault platform and the underlying protocols may count this activity, potentially qualifying you for multiple reward streams simultaneously.
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