Santiago R Santos, founder of Inversion Capital, has criticized the current DeFi lending market, stating that yields do not adequately reflect the associated risks. He highlighted that the Morpho vault, with approximately $11.7 billion in assets, offers an annual yield of just 2% to 4%, which is lower than some near-risk-free U.S. Treasury rates. Santos argues that these returns fail to cover the risks inherent in crypto-collateralized lending, such as price volatility, liquidation, and leverage cycles. He suggests that the yield spread for ETH/BTC collateralized loans should be at least 300 to 400 basis points above the risk-free rate.