Financial Times: Total Deposits in Crypto Vaults Have Risen from $4 Billion at the Start of Last Year to Over $10 Billion

Total deposits in cryptocurrency vaults have grown from $4 billion at the beginning of last year to exceed $10 billion. Fintech firms, digital asset treasury management entities, and hedge funds are the primary depositors of these vaults. These vaults operate via smart contracts on DeFi platforms. Each vault has a "manager" (equivalent to an investment manager) responsible for selecting lending strategies, setting risk limits, and collecting fees. Their yields typically range between 3% and 10%, while higher-risk strategies can even deliver returns of 20% or more. At the same time, however, they expose depositors to collateral risk, liquidity risk, and smart contract risk.

Source: PANewsRead original

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