# Tarot Vaults

Many popular DEXs offer additional rewards to incentivize LPs to provide liquidity for specific token pairs. Liquidity providers can put their LP tokens to work in a farming or staking pool to earn these additional rewards beyond transaction fees.

Tarot handles this process automatically with Tarot Vaults. Any lending pool with a Tarot Vault enabled will earn and reinvest these rewards. Rewards are accrued to anyone who deposits or leverages their collateral (LP tokens) in the lending pool, and periodically reinvested to buy more LP tokens on their behalf.

### Mechanics

Whenever a borrower deposits LP tokens in a lending pool which supports Tarot Vaults, the LP tokens are automatically staked in the underlying staking pool. Later, when the borrower deleverages or withdraws their LP tokens, it is automatically withdrawn from the underlying staking pool. This way, the borrower automatically earns additional LP tokens.

Reinvestment is enabled by a permissionless bounty system for Tarot Vaults. Anyone can initiate the reinvestment process for the pending reward of a lending pool. In exchange, they keep a small percentage of the reward as a reinvestment bounty (currently 1%).


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.tarot.to/tarot-protocol/tarot-vaults.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
