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Crypto Lending Vaults Reach $10B in Deposits
Crypto lending vaults have attracted over $10 billion in deposits, up from $4 billion at the start of last year. These vaults operate through smart contracts on decentralized finance platforms and are managed by curators who select lending strategies, set risk limits, and collect fees. The deposits highlight growing demand for strategies that put stablecoins and other tokens to work. However, these vaults expose depositors to risks such as illiquid collateral, liquidity issues, and smart contract vulnerabilities. Regulators are examining whether existing rules should apply to these platforms.