Crypto Lending Vault Deposits Top $10B as Experts Warn of Systemic Risk
- —Vault deposits rose from $4 billion in early 2025 to more than $10 billion
- —Growth is driven by institutions and treasuries chasing stablecoin yield
- —Key vulnerabilities are collateral reuse and liquidity mismatches
- —Experts urge Basel III-style capital buffers and 'proof of exposure' disclosures
Why it matters: DeFi lending is scaling without mandatory capital buffers, raising the risk of cascading liquidations and a regulatory crackdown.
Source: Bitcoin.com