Aave Founder Slams Morpho's Non-Custodial Vault Classification
- —Kulechov said a timelock does not make a vault non-custodial if a curator can change capital allocation
- —Morpho proposed two categories: non-custodial vaults with smart-contract rules and discretionary vaults with manager control
- —Kulechov cited managerless vaults and the original Yearn vaults as genuinely non-custodial
- —Morpho referenced SEC Commissioner Peirce's view that vaults should be judged by structure, not labels
Why it matters: The dispute sets standards for institutional on-chain lending, where vault classification drives regulatory treatment and depositor protections.
Source: The Crypto Times