> For the complete documentation index, see [llms.txt](https://docs.mydiscocats.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mydiscocats.com/product/flex-vaults.md).

# Flex Vaults

**Flex Vaults** offer capital-efficient, flexible yield farming with **seamless single-sided deposits** via our **Zapper v2**. Fully integrated with our **Unified Borrowing System**, they allow users to **auto-compound rewards** and **borrow against LP positions**—all in a single, streamlined flow.

Deposit any token, earn auto-compounded yield, and unlock liquidity **without leaving the vault**.

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## **Benefits**

* **Auto-Compounding Yields**: Rewards are automatically compounded back into the position, maximizing APY over time.
* **Borrow Without Exiting**: Use your LP position as collateral and borrow USDC instantly through our unified system to loop or deploy elsewhere without needing to unwind your position.
* **Unlock Additional Layers of Liquidity**: Deposit into partner vaults, earn, and borrow against your position—all while maintaining exposure and boosting capital efficiency.
* **Zapper v2 Integration**: Deposit any token and get routed optimally into LP positions in just one click.

## **Why it matters?**

1. **Everything Becomes Borrowable**\
   With our unified borrowing system, users can deposit into any supported product, be it liquidity pools, lending markets, or yield vaults and borrow against those positions. This turns virtually *any yield-generating asset and vault into usable collateral*, unlocking new capital efficiency.
2. **Supercharges Monad Liquidity via Zapper v3** \
   Zapper v3 accepts any token from any chain, making cross-chain onboarding frictionless. This will drive deep liquidity into Monad-native pools by letting users zap into LPs or vaults with *one click*, regardless of origin chain or token.
3. **More Yield from More Sources**\
   As borrowing and liquidation activity grows, so does the revenue flowing back to the underlying vaults. Interest and fees collected from borrowers enhance vault performance, creating *multi-layered yield*.