diff --git a/Cargo.toml b/Cargo.toml
new file mode 100644
index 0000000..20ed9eb
--- /dev/null
+++ b/Cargo.toml
@@ -0,0 +1,10 @@
+[package]
+name = "microyield_vault"
+version = "0.1.0"
+edition = "2021"
+
+[lib]
+crate-type = ["cdylib"]
+
+[dependencies]
+soroban-sdk = { version = "20.5.0", features = ["alloc"] }
diff --git a/lib.rs b/lib.rs
new file mode 100644
index 0000000..36a71c6
--- /dev/null
+++ b/lib.rs
@@ -0,0 +1,192 @@
+#![no_std]
+
+use soroban_sdk::{
+    contract, contractimpl, contracttype, token,
+    Address, Env, Map, Symbol
+};
+
+/// -------------------------------
+/// DATA TYPES
+/// -------------------------------
+
+#[contracttype]
+#[derive(Clone)]
+pub struct UserBalance {
+    pub amount: i128,
+}
+
+/// Storage keys
+#[contracttype]
+pub enum DataKey {
+    Admin,
+    Token,
+    Balances,
+}
+
+/// -------------------------------
+/// CONTRACT
+/// -------------------------------
+
+#[contract]
+pub struct MicroYieldVault;
+
+/// -------------------------------
+/// IMPLEMENTATION
+/// -------------------------------
+
+#[contractimpl]
+impl MicroYieldVault {
+
+    /// Initialize the vault
+    /// admin -> contract owner
+    /// token -> stablecoin or XLM wrapped token address
+    pub fn initialize(env: Env, admin: Address, token: Address) {
+        if env.storage().instance().has(&DataKey::Admin) {
+            panic!("Already initialized");
+        }
+
+        admin.require_auth();
+
+        env.storage().instance().set(&DataKey::Admin, &admin);
+        env.storage().instance().set(&DataKey::Token, &token);
+        env.storage().instance().set(
+            &DataKey::Balances,
+            &Map::<Address, UserBalance>::new(&env),
+        );
+    }
+
+    /// Deposit tokens into vault
+    pub fn deposit(env: Env, user: Address, amount: i128) {
+        user.require_auth();
+
+        if amount <= 0 {
+            panic!("Amount must be positive");
+        }
+
+        let token_address: Address = env
+            .storage()
+            .instance()
+            .get(&DataKey::Token)
+            .unwrap();
+
+        let token_client = token::Client::new(&env, &token_address);
+
+        // Transfer token from user to vault
+        token_client.transfer(&user, &env.current_contract_address(), &amount);
+
+        // Update internal vault balance
+        let mut balances: Map<Address, UserBalance> = env
+            .storage()
+            .instance()
+            .get(&DataKey::Balances)
+            .unwrap();
+
+        let mut user_balance = balances
+            .get(user.clone())
+            .unwrap_or(UserBalance { amount: 0 });
+
+        user_balance.amount += amount;
+        balances.set(user.clone(), user_balance);
+
+        env.storage().instance().set(&DataKey::Balances, &balances);
+    }
+
+    /// Withdraw tokens from vault
+    pub fn withdraw(env: Env, user: Address, amount: i128) {
+        user.require_auth();
+
+        if amount <= 0 {
+            panic!("Invalid withdrawal amount");
+        }
+
+        let token_address: Address = env
+            .storage()
+            .instance()
+            .get(&DataKey::Token)
+            .unwrap();
+
+        let token_client = token::Client::new(&env, &token_address);
+
+        let mut balances: Map<Address, UserBalance> = env
+            .storage()
+            .instance()
+            .get(&DataKey::Balances)
+            .unwrap();
+
+        let mut user_balance = balances
+            .get(user.clone())
+            .unwrap_or(UserBalance { amount: 0 });
+
+        if user_balance.amount < amount {
+            panic!("Insufficient vault balance");
+        }
+
+        user_balance.amount -= amount;
+        balances.set(user.clone(), user_balance);
+
+        env.storage().instance().set(&DataKey::Balances, &balances);
+
+        // Transfer tokens back to user
+        token_client.transfer(
+            &env.current_contract_address(),
+            &user,
+            &amount,
+        );
+    }
+
+    /// Get user vault balance
+    pub fn balance(env: Env, user: Address) -> i128 {
+        let balances: Map<Address, UserBalance> = env
+            .storage()
+            .instance()
+            .get(&DataKey::Balances)
+            .unwrap();
+
+        balances
+            .get(user)
+            .unwrap_or(UserBalance { amount: 0 })
+            .amount
+    }
+
+    /// Get vault total TVL
+    pub fn total_value_locked(env: Env) -> i128 {
+        let balances: Map<Address, UserBalance> = env
+            .storage()
+            .instance()
+            .get(&DataKey::Balances)
+            .unwrap();
+
+        let mut total: i128 = 0;
+
+        for (_, balance) in balances.iter() {
+            total += balance.amount;
+        }
+
+        total
+    }
+
+    /// Admin only emergency withdrawal
+    pub fn emergency_withdraw(env: Env, to: Address, amount: i128) {
+        let admin: Address = env
+            .storage()
+            .instance()
+            .get(&DataKey::Admin)
+            .unwrap();
+
+        admin.require_auth();
+
+        let token_address: Address = env
+            .storage()
+            .instance()
+            .get(&DataKey::Token)
+            .unwrap();
+
+        let token_client = token::Client::new(&env, &token_address);
+
+        token_client.transfer(
+            &env.current_contract_address(),
+            &to,
+            &amount,
+        );
+    }
+}