> ## Documentation Index
> Fetch the complete documentation index at: https://docs.voltr.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# How It Works

> Understand the Voltr vault lifecycle from deposit to yield generation

## The Vault Lifecycle

<Steps>
  <Step title="Users deposit assets into Vaults">
    * Receive LP tokens representing their share
    * Assets are tracked and accounted for
  </Step>

  <Step title="Vault managers allocate funds">
    * Managers allocate into different protocols
    * Adaptors handle protocol-specific interactions
    * Standardized interfaces ensure consistent behavior
  </Step>

  <Step title="Yield generation">
    * Yield is automatically compounded
    * Performance from the yield is tracked
  </Step>

  <Step title="Asset management">
    * Vault managers can rebalance between different protocols
    * Each reallocation is tracked and accounted for
    * Profits and losses are reflected in LP token value
  </Step>
</Steps>