If you're new to the world of cryptocurrencies and decentralized finance (DeFi), it's easy to feel overwhelmed by all the jargon and complex processes. But don't worry — we're here to break down one of the most important concepts in DeFi: staking and unstaking — especially in the context of Aarna's âtv vaults.

Let's start from the beginning.

What Are âtv Vaults?

An âtv vault is like a digital piggy bank that helps you earn interest on your crypto without having to do anything yourself. It's a smart contract on the blockchain that automatically invests your money into different DeFi platforms so you can earn rewards — like interest or fees — in return.

These vaults are designed to aggregate yield. That means they search for the best places to put your money so you can make as much profit as possible. Think of it like having a robot manage your savings, choosing the best banks and interest rates for you.

Staking: Putting Your Money to Work

Staking is when you lend your crypto to a DeFi protocol in return for rewards. For example, if you stake $100 in a protocol, you might get back $102 after a while because that protocol pays interest.

In the case of âtv vaults, when you deposit your assets (like stablecoins) into the vault, the system automatically stakes a portion of them into different DeFi platforms to generate yield. The exact percentage of assets that are staked is called stakePercentage, and it’s set when the vault is created.

Let’s look at how it works on different blockchains:

On Ethereum

The âtv vaults can stake assets in three major platforms:

• Aave – a popular lending protocol where you can earn interest by lending out your crypto.
• Compound V2 & V3 – another lending platform that offers interest rates based on supply and demand for different assets.
  By using all these platforms, the vault ensures it’s getting the best possible returns.

On Arbitrum

Arbitrum is a fast and cheap blockchain that works on top of Ethereum. Here, âtv vaults stake assets in:

• Aave
• Compound V3
• DForce
• Morpho
• Dolomite
  This gives more options and better chances for higher rewards.

On Sonic

Sonic is a different blockchain. Here, the strategy is even more advanced. The vault first stakes your assets in Aave, and then the staked tokens (like aUSDC) are moved into Pendle LP pools. These are special pools that let you earn even more rewards through liquidity provision. This is like collecting interest on your interest — it gives even more returns!

How Staking Works in âtv Vaults

When you deposit your assets into a vault, the system doesn’t stake everything at once. Instead, it uses a percentage (x%) of your assets to stake, and the rest stays on the âtv base contract, which acts like a wallet that’s always available.

For example, if the stakePercentage is 70%, 70% of your assets are staked into DeFi protocols to earn interest, and 30% stays in the vault for quick access.

This balance helps the vault earn more rewards while still having enough cash available when you want to withdraw.

Unstaking: Getting Your Money Back

Sometimes you’ll want to take your money out — this is called unstaking. This happens when you want to redeem your shares or have a queued withdrawal.

When you request a withdrawal, the vault doesn’t unstake everything at once. Instead, it uses the same percentage (x%) to unstake the portion that was originally staked. The rest (100 - x%) is taken directly from the base contract.

This design is smart because it keeps the vault running smoothly and avoids large, costly transactions to unstake everything at once.

Why This Matters for You

This system makes it easy to earn passive income without having to worry about the complex details. You just deposit your assets, and the vault takes care of the rest.

The rewards you get from staking are added to the vault, which increases the Net Asset Value (NAV). The NAV is like a score that tells you how much your share is worth. As the vault earns more, your share becomes more valuable.

What About Emergency Withdrawals?

Even though these vaults are designed to be safe and reliable, sometimes things go wrong — like smart contract bugs or market crashes. That’s why the vaults have emergency withdrawal functions. This means you can quickly get your money back if something goes wrong, without waiting for the vault to unstake everything.

Final Thoughts

In a world full of complex DeFi platforms, âtv vaults offer a simple and efficient way to earn passive income. By automating the staking and unstaking process, they take the guesswork out of yield farming and make it accessible for everyone, including crypto beginners.

Whether you're looking to grow your crypto savings or just learn how DeFi works, understanding staking and unstaking in âtv vaults is a great first step. With these tools, you can start earning interest on your crypto — all while sitting back and letting the system do the work for you.