PANews October 19 news, according to the Financial Times, total deposits in cryptocurrency "Vaults" have grown from $4 billion at the beginning of last year to more than $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 also expose depositors to collateral risk, liquidity risk, and smart contract risk.