Glossary
Plain-English definitions for terms used in Earn.
Approval
An on-chain allowance that lets Earn move a token for you. Earn asks for one on USDC, sized to your deposit, and an unlimited one per vault share token, so it can move shares during rebalances, collect the fee, and redeem at close. Manage them on the Vaults page or with revoke.cash. See Approvals and signatures.
APY
Annual percentage yield. Earn reports each vault's share-price APY: the annualized rate at which the share price grew. It excludes token rewards and is not guaranteed.
APY smoothing window
How long Earn averages a vault's share-price APY before it ranks the vault. Default 6 hours. See The scoring rule.
Auto-Pilot
The app's name for Earn's rebalancer. The Auto-Pilot Status card on each strategy page shows what it is doing. See Rebalancing.
Batched approvals
Several per-vault approvals sent in one transaction, up to ten, on wallets that support it. Other wallets sign one approval per vault. See Supported wallets.
Bridge
A cross-chain USDC move through Circle's CCTP v2: burn on the source chain, mint on the destination chain. On a deposit or rebalance the mint goes into a vault. On a close or a Reduce it goes to your wallet. See Cross-chain bridging.
Claim to wallet
A button on the Bridging card when a deposit bridge has not landed 30 minutes after the burn. It mints the USDC to the wallet that started the bridge instead of the vault. See If a bridge stalls.
Clone
A button on a strategy page that copies its settings into a new draft. Anyone viewing the page can use it. See Creating a strategy.
Confirmation window
How long a candidate vault must hold its edge, on consecutive five-minute checks, before Auto-Pilot moves. Default 1 hour. See Rebalancing.
Covered strategy
A strategy with optional loss cover from OpenCover, for a 1.05% per year premium charged inside the vault. It invests on Base only, though you can fund it from any network, and a full close is the only way to take capital out. See Covered strategies.
Cycle
One pass Auto-Pilot makes over a strategy every five minutes: score eligible vaults, decide whether to move, submit the transaction.
Eligible vault
A vault Auto-Pilot may route your strategy into. It must meet all of these: on Earn's approved set; approved by your wallet; not hidden; on one of your chains; above your Minimum vault size (TVL) and Minimum liquidity to enter; able to accept the deposit; reporting a positive APY. See Vaults.
Forced exit
An exit that skips the gap and confirmation gates. Auto-Pilot leaves a vault on the next check because you hid it, its withdrawable liquidity fell below your Minimum withdrawable liquidity, or its TVL fell below your Auto-exit vault size. See Forced exits.
Holding
A tag on a position whose vault cannot cover a withdrawal right now. The position stays put, keeps earning, and is left out of moves, a Reduce, and a close until liquidity returns. On a close its shares stay in your wallet. See Rebalancing.
Increase and Reduce
The two capital actions on an active standard strategy. Increase adds USDC, and Reduce takes part of it out without closing. See Managing positions.
Manage tab
The tab on a strategy page that holds the settings, Clone, Pause and Resume, and Close (or Delete before funding). Visitors can read it and use Clone. Only the owner can change the settings, pause, resume, or close.
Position
Your holding in one vault. At creation a strategy splits its capital near-equally across the vault count you chose. A Reduce takes a slice from every position. An Increase adds to the vaults the strategy already holds.
Principal-erosion guard
A check that skips a rebalance whose fee would push net value below your deposits minus your withdrawals. Forced exits skip it. See Principal-erosion guard.
Realized APY
Your strategy's own annualized return since its first deposit landed, measured from vault share-price growth. Capital added later counts only from when it arrived. Shown about 30 minutes after your first deposit lands, bridge included.
Rebalance
A move from one eligible vault to another when a higher-APY vault clears your gap and confirmation window. Same-chain or cross-chain. See Rebalancing.
Rebalance fee
The gas cost of a rebalance, converted to USDC, times a per-chain factor of 1.1x to 5x. Taken in shares of the vault you leave. Never a percentage of yield. A Reduce can also pay a relay fee. See Fees and gas.
Rebalance gap
How much better a candidate vault's APY must be than your lowest held vault before Auto-Pilot moves. Default 3% on the same network. The Cross-network gap, default 5%, applies to a vault on another network. See Rebalancing.
Strategy
One auto-rebalancing setup: its chains, settings, vault count, and balance. One wallet can own many. See Creating a strategy.
USDC
The US dollar stablecoin issued by Circle. Earn supports USDC only.
Vault
A smart contract that pools deposits and lends them through Morpho's markets. The vault mints its shares to your wallet, and you can redeem them on Morpho up to the vault's withdrawable liquidity. See Vaults.
Withdrawable liquidity
The USDC that can be pulled out of a vault right now. Usually far less than TVL, because vaults lend most deposits out. Shown per vault with a Liquid % tag. See Vaults.