> For the complete documentation index, see [llms.txt](https://docs.aozo.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.aozo.io/aozo-earn/aozo-earn/how-aozo-earn-works.md).

# How AOZO Earn works

How AOZO Earn manages your USDC position.

AOZO Earn connects a user’s USDC deposit to yield strategies through a vault. The flow has three stages: deposit, funds at work, and redemption.

<figure><img src="https://1771733737-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMcg4WOcnp7EMPPY6VrTS%2Fuploads%2FwF1YI0C3vknyj7tiJyNH%2Fhow%20aozo%20works.png?alt=media&amp;token=df027f29-e804-4838-a18b-178d80271f82" alt=""><figcaption></figcaption></figure>

### How it works

{% stepper %}
{% step %}

#### Deposit USDC

You deposit USDC from your wallet into the AOZO Earn Vault. In return, the vault mints azUSD, representing your position in the vault.
{% endstep %}

{% step %}

#### Put funds to work

The vault allocates deposited USDC to strategy venues. Your funds are deployed into yield strategies while you hold azUSD in your wallet. Funds returning from those strategies flow back into the vault.
{% endstep %}

{% step %}

#### Request redemption

When you want to exit, you submit a redemption request for your azUSD and receive a redemption receipt. The receipt represents your pending claim; receiving it is separate from receiving USDC.
{% endstep %}

{% step %}

#### Claim USDC

Once your redemption batch is funded, USDC becomes available to claim. You then claim the USDC back to your wallet, completing the redemption process.
{% endstep %}
{% endstepper %}

{% hint style="warning" %}
Your share value can rise or fall. Returns are variable, and you may receive less than you deposited.
{% endhint %}

See [Portfolio composition](/aozo-earn/transparency/portfolio-composition.md) and [Key risks](/aozo-earn/risks-and-security/key-risks.md).


---

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