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

# OAV v3

> Wrap a single DeFi strategy in an ERC-4626 vault with configurable fees, whitelisted reward claiming, and role-based pausing.

An **Optimized Allocator Vault (OAV)** wraps a single DeFi strategy in an ERC-4626 compliant vault. You deposit an asset, the vault forwards it to the strategy and mints you shares, and the value behind each share grows as the strategy earns yield. OAV v3 is the current production implementation.

## How it works

1. You deposit the underlying asset; the vault invests it in its strategy and mints you shares.
2. The strategy earns yield, so each share's redeemable value grows while your share count stays constant.
3. Deposit, management, and performance fees, if configured, are collected as additional vault shares minted to the fee recipient.
4. You redeem or withdraw at any time, burning shares and receiving the underlying asset back.

## Vault mechanics

| Property | Behavior |
| - | - |
| Strategy | One ERC-4626 strategy per vault, fixed at deployment |
| Fee types | Deposit, performance, and management, each independently configurable |
| Reward claiming | Whitelisted per target contract and function selector; gated to `HARVESTER_ROLE` |
| Pausing | A dedicated `PAUSER_ROLE` can pause deposits and mints, and separately disable new deposits |
| Custody | Role-gated functions route deposits only to the vault's fixed strategy; the vault's implementation is upgradeable by yield.xyz (see [Migrate from OAV v1 & v2](/documentation/platform/vaults/migrate-from-oav-v1-v2)) |

<Tooltip headline="ERC-4626" tip="The standard vault interface: deposit(), withdraw(), mint(), and redeem() against a single underlying asset." />

## Fees

Each vault has its own `depositFee`, `performanceFee`, and `managementFee`, set when the vault is configured.

| Fee | Charged | Collected |
| - | - | - |
| Deposit fee | On the deposited amount, at entry | Minted as fee shares alongside the user's shares in the same deposit |
| Management fee | Continuously, against assets under management | Minted as fee shares at harvest |
| Performance fee | On gains since the last harvest | Minted as fee shares at harvest |

All fees are collected by minting new vault shares to the configured fee recipient, which dilutes existing holders proportionally rather than pulling assets out of the strategy. Harvest runs automatically before every deposit, withdrawal, and redemption, so fee accrual stays current even if no one calls it directly; it can also be called on demand by `HARVESTER_ROLE`.

OAV fees are also bounded by the vault contract, so agree OAV fee levels with yield.xyz when you request the vault.

Optionally, a vault's fee recipient can be a fee-splitter contract that distributes collected fee shares across multiple beneficiaries on demand, instead of a single address.

See [Monetization](/documentation/earn/monetization) for how yield.xyz's fee model works generally, and [Discretionary fees](/documentation/advanced-setup/dashboard/discretionary-fees) for where fees are configured.

## Reward handling

Strategies often pay part of their yield as separate incentive tokens rather than compounding it into the position automatically. OAVs claim these through a whitelisted, role-gated function and route them back into the strategy, either through yield.xyz's automated job or a manually operated one:

<Columns cols={2}>
  <Card title="Automatic off-ramping" icon="arrows-rotate" href="/documentation/platform/vaults/oav-mechanics/automatic-off-ramping">
    yield.xyz's recurring job claims, swaps, and reinvests rewards with no action from you.
  </Card>

  <Card title="Manual reward claiming" icon="signature" href="/documentation/platform/vaults/oav-mechanics/manual-reward-claiming">
    Claim and reinvest on your own schedule instead of the automated job.
  </Card>
</Columns>

## Versions

OAV v1 shipped the core ERC-4626 vault with deposit, performance, and management fees but no reward-claiming mechanism. Reward claiming and target whitelisting were added at v2. v3 refined deposit-fee share accounting and added deposit pausing, a dedicated pauser role, and a configurable reward-forwarding address. Vaults run behind upgradeable proxies, so an existing vault can move between these versions without changing its address; see [Migrate from OAV v1 & v2](/documentation/platform/vaults/migrate-from-oav-v1-v2).

## Next steps

<Columns cols={2}>
  <Card title="Vaults & OAVs overview" icon="vault" href="/documentation/platform/vaults">
    The three vault families and how they differ.
  </Card>

  <Card title="Off-the-shelf OAVs" icon="store" href="/documentation/platform/vaults/off-the-shelf-oavs">
    Pre-deployed OAVs you can integrate today.
  </Card>
</Columns>


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