Depositing into Vaults: A Step-by-Step Guide

Rho Vaults are automated strategies designed for users to passively earn yield by contributing liquidity to Rho Protocol. They are a key part of Rho’s growing ecosystem and provide a market-efficient way to participate in interest rate markets. (If you're new to Vaults, check out our first article: "Vaults Are Coming: A First Look")

This guide will walk you through the deposit process for the Rho Liquidity Vault and explain why your participation matters to the broader Rho Protocol.

Before You Start

Requirements

• Asset: USDT (Tether) on the Arbitrum network.
• Wallet: A compatible Web3 wallet (e.g., MetaMask, Rabby, WalletConnect-enabled options).

Security Notes

• Always verify you're on the official Rho Protocol website.
• Read through the docs.rho.trading before depositing.
• Understand the risks: while Vaults are market-efficient, they are not risk-free.

Step-by-Step Deposit Guide

1. Connecting Your Wallet

• Visit the Rho Protocol
• Click “Connect Wallet”.
• Select your wallet provider (MetaMask, WalletConnect, etc.).
• Ensure you are connected to the Arbitrum network. If not, switch networks in your wallet

2. Selecting the Rho Liquidity Vault

• Navigate to the “Vaults” tab in the app interface.
• Click on “Rho Liquidity Vault”.
• Review vault details: strategy overview, current yield (APR), performance fee, and deposit/withdrawal parameters.

3. Entering Deposit Amount

• Input the amount of USDT you wish to deposit.
• If applicable, note any minimum or maximum deposit thresholds.

4. Review & Confirm

• A summary screen will display your deposit details.
• Approve the transaction in your wallet (if this is your first deposit, an “approve” step is required before the “deposit” transaction. You need to give the permissions to spend your USDT).
• Confirm the transaction and pay the gas fee (Arbitrum fees are generally low).

5. Tracking Your Position

• After confirmation, you can track your position in the Vaults dashboard.
• View metrics like:
  • Total deposit
  • Current yield
  • Accrued fees
  • Withdrawal (your funds are always unlocked and withdrawable)

FAQs & Tips

Are there any early withdrawal penalties?

Currently, there is no fixed lock-up, but withdrawal conditions may vary depending on the vault’s strategy and liquidity cycles.

Is this risk-free?

No, the vault strategy is not entirely without risk, there may still be exposure to extreme volatility, depegging risks, or smart contract vulnerabilities.

Need help?

• Visit the FAQ
• Join our Discord for live support.
• Refer to the Product Guide for in-depth strategy insights