DeFi crypto lending vault deposits have exceeded $10 billion, up from about $4 billion at the start of 2025, according to a Financial Times report cited in the source. The report links the growth to investors seeking higher yields, but warns that users may not understand the risks and does not call for immediate government intervention.
Zigfinance executive Abdul Rafay Gadit said risk controls remain uneven. He warned that reused collateral could spread liquidations across platforms, while vaults offering quick withdrawals against locked or illiquid assets could run short of liquid reserves. Echo Base’s August Widmer proposed capital buffers modeled on Basel III, while acknowledging they would add costs and slow development.
