Crypto lending vaults have attracted over $10 billion in deposits, up from $4 billion at the start of last year, as investors seek returns on digital assets. These curator-managed strategies, offering typical returns of 3%-10% (or over 20% for riskier options), expose depositors to collateral, liquidity, and smart-contract risks. Regulators are increasing their scrutiny, with the U.S. SEC questioning vaults holding securities and European regulators proposing oversight for DeFi intermediaries.