docs(vault-manager): add readme for vault manager

contracts/liquidity_hub/vault-manager/README.md

@@ -1,4 +1,42 @@
 # Vault Manager
 
-The Vault Manager is the V2 iteration of the original WW vault network. This is a monolithic contract that handles all
-the vaults and flashloans in the White Whale DEX.
+The Vault Manager is the V2 iteration of the original White Whale vault network. This is a monolithic contract that 
+handles all the vaults and flashloans on the Migaloo DEX.
+
+Vaults are single collateral pools used primarily by bots to take arbitrage opportunities across different AMMs via 
+flashloans. Flashloans have fees that are distributed among the users that have deposited into the vault where the 
+flashloan originated, and the users who bond assets on the Bonding Manager.
+
+## How it works
+
+The following is a high-level overview of how the Vault Manager works. It touches on some technical details, assisting
+developers in understanding the contract's inner workings, while also providing a general understanding of the contract's
+functionality, so a regular user can understand how to interact with it.
+
+### Vault Creation
+
+Creating vaults is a simple and permissionless process. A user can call the `CreateVault` message, with the desired vault 
+parameters together with the vault creation fee. The vault creation fee is a protocol fee that is sent to the Bonding 
+Manager. There can be multiple vaults for the same asset, but each vault must have a unique identifier. Vaults cannot be
+removed or updated once created, so it is important to get the parameters right from the start.
+
+### Deposits and Withdrawals
+
+Users can deposit and withdraw assets from the vaults at any time. The assets are stored in the vault's balance, and they  
+are used to provide liquidity to the arbitrage bots.
+
+### Flashloans
+
+Flashloans are a powerful tool that allows bots and users to borrow assets from the vault without any collateral, with 
+the condition that the assets plus the flashloan fees are returned within the same transaction, otherwise the transaction 
+is reverted as if nothing had happened. 
+
+A flashloan can be taken by calling the `FlashLoan` message, with the desired amount, vault identifier and the payload. 
+The payload is a list of messages that will be executed in the same transaction, and it doesn't need to include the "payback" 
+transaction as it is handled by the contract.
+
+When a flashloan is taken, a boolean in the state is set to true on `ONGOING_FLASHLOAN`, so the funds can't be used to 
+be deposited back into a vault or to take another flashloan. After the payload is executed, the `CallbackMsg::AfterFlashloan` 
+is called. This makes sure the funds are back in the vault plus the fees. The profit made from the payload operations is 
+sent back to the originator of the flashloan. The Bonding Manager receives the protocol fees via the `FillRewards` message 
+and the users that have deposited into the vault where the flashloan was taken from receive the flashloan fees.