Financial Times: Total crypto vault deposits have increased from $4 billion at the beginning of last year to over $10 billion.

October 19 - According to a report by the Financial Times, total deposits in cryptocurrency "vaults" have grown from $4 billion at the beginning of last year to over $10 billion. Fintech companies, digital asset treasury management institutions, and hedge funds are the main depositors in such "vaults." These "vaults" operate through smart contracts on DeFi platforms.

Each "vault" has a "manager" (equivalent to an investment manager) responsible for selecting lending strategies, setting risk limits, and charging fees. Their yields typically range from 3% to 10%, while riskier strategies may even bring returns of 20% or higher. But at the same time, they expose depositors to collateral risk, liquidity risk, and smart contract risk.