Financial Times: Total deposits in crypto vaults have grown from $4 billion at the start of last year to over $10 billion

October 19 – According to the Financial Times, total deposits in cryptocurrency "vaults" have grown from $4 billion at the start of last year to more than $10 billion. Fintech companies, digital asset treasury managers, 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 deliver returns of 20% or higher. However, they also expose depositors to collateral risk, liquidity risk, and smart contract risk.