More than $10B is now sitting in crypto lending vaults, up from roughly $4B at the start of 2025. We’re moving beyond users depositing assets into a lending protocol and collecting a yield. A new layer is emerging between capital and the protocols that put it to work. The structure looks like this: Depositors → vaults → curators → lending markets → borrowers → yield Here is how I map the landscape: ➥ Lending infrastructure @Morpho, @aave and @eulerfinance provide markets where capital can be supplied and borrowed. They are the underlying financial infrastructure. But a lending market doesn’t automatically determine how every depositor’s capital should be allocated. ➥ Vaults and capital allocation @Morpho and @sparkdotfi are part of the infrastructure behind curated lending strategies. Curators such as @SteakhouseFi, @GauntletNetwork and @SentoraHQ help determine where capital goes, which collateral is acceptable and how risk parameters are configured. This is where capital allocation becomes a product of its own. ➥ Risk assessment The problem is that two vaults can offer similar yields while carrying completely different risks. One may lend against liquid collateral with conservative limits. Another may depend on concentrated collateral, fragile liquidity or assumptions that only work while markets remain calm. S&P Global’s new Vault Risk Assessment framework is a sign that independent risk analysis is becoming more important as this market grows. ➥ The hidden risk A vault’s displayed yield doesn’t tell you everything. You also need to understand: ▫️ who controls the strategy ▫️ where deposits are actually deployed ▫️ how collateral is valued ▫️ whether withdrawals can be met during stress ▫️ what happens when liquidations hit thin markets ▫️ how much trust is placed in the curator Automated execution doesn’t eliminate bad risk management. It can make the consequences happen faster. ★ Where I think the opportunity is If onchain lending continues to attract institutional capital, the next valuable layer may not be another lending market. It could be the infrastructure that makes lending strategies easier to evaluate, allocate to and monitor. That includes: – onchain credit analytics – vault risk monitoring – collateral intelligence – automated risk management – transparent portfolio reporting – institutional capital allocation The opportunity is not simply to offer a higher APY. It’s to make the risk behind that APY understandable. My main watchlist here is $MORPHO, $AAVE and $EUL, alongside the curators building on top of lending infrastructure. The question I care about most is whether DeFi can turn its growing pool of capital into a credit market that institutions can actually evaluate.