# Lending vaults

The Circuitry API lists lending vaults from Morpho and Aave on Base and Robinhood Chain. A vault lends one asset to borrowers, and pays interest to the accounts that deposit into it.

[List vaults](/reference/lending-vaults) to compare their rates, and [retrieve a vault](/reference/lending-vault) to read one vault. Deposits and withdrawals through the API are not available yet.

## Vaults

Circuitry lists two kinds of vault:

* A Morpho vault. A company, the curator, chooses the Morpho markets where the vault lends. Each market accepts one type of collateral from its borrowers.
* An Aave reserve. Aave's governance sets the rules of each reserve. The API calls an Aave reserve a vault too.

Each vault has an address on its chain. A Morpho vault's address is also the address of its share token. An Aave reserve's address is the address of its aToken.

## How Circuitry selects vaults

Circuitry lists a short set of vaults. The Circuitry team reviews each vault before Circuitry lists it. Each vault must meet these conditions:

* It lends an [asset](/reference/assets) that Circuitry supports, such as USD or ETH.
* It held deposits of at least 1,000,000 USD when Circuitry listed it. At that time, depositors could withdraw at least 5% of the deposits.
* A Morpho vault comes from Morpho's own factory. Steakhouse Financial, Gauntlet, Spark, or Anthias Labs is its curator.
* A Morpho vault must wait at least 3 days before it adds a market, an adapter, or a larger cap. No one can stop a withdrawal from the vault with a gate.
* An Aave reserve is part of Aave's official market on its chain.

Circuitry lists no more than 5 Morpho vaults for each asset on each chain.

## Rates

`apy` is the annual percentage yield of a deposit at the current rate. It subtracts all fees. It does not include rewards, such as the tokens that some programs give to some depositors. The rate changes when borrowers borrow and repay.

Circuitry calculates each rate from the vault's data on the chain. It reads each vault every minute.

## Statuses

| Status | Meaning |
| --- | --- |
| `active` | The vault takes deposits and pays withdrawals |
| `withdrawals_only` | Circuitry takes no new deposits into the vault. Withdrawals continue |
| `paused` | The protocol stops deposits and withdrawals |

A vault changes to `withdrawals_only` when one of these events occurs:

* Its owner, its curator, its guardian, its gates, its adapters, or its adapter registry changes.
* One of its timelocks becomes shorter.
* Its share price falls by more than 0.01%. This fall shows a loss.
* Aave freezes the reserve.
* Circuitry removes the vault from its list.

The Circuitry team then reviews the vault. Circuitry never stops withdrawals from a vault.

## How a vault can lose funds

A deposit in a vault is not a bank deposit. A vault can lose funds in these ways:

* Bad debt. The value of a borrower's collateral can fall faster than a liquidation can sell it.
* An oracle failure. A wrong price can let a borrower take more than the value of the collateral.
* A curator's decision. A curator can lend in a market that has more risk.
* A contract bug. A bug in Morpho, in Aave, or in a vault can let an attacker take funds.
* Low liquidity. When borrowers use almost all of a vault's assets, a withdrawal must wait. It waits until borrowers repay, or until the curator moves funds.

The Circuitry list is not a guarantee. Before you deposit a large amount, read about the vault's markets and its curator.