The crypto market's focus on 'safe yield' has led to a resurgence in the size of Vaults, or on-chain yield pools, which have recovered to $6 billion following multiple platform failures in 2022. Bitwise projects that this figure could double by the end of 2026, driven primarily by demand for stablecoin yields. Vaults utilize non-custodial smart contracts to allocate funds into strategies like lending and market-making, emphasizing transparency and avoiding balance sheet exposure. However, industry experts caution that competitive pressures might lead some managers to relax risk controls and introduce leverage, potentially reintroducing risks.
Crypto Vaults Rebound to $6 Billion, Expected to Double by 2026
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