Value of Deposits in Cryptocurrency Vaults Exceeds $10 Billion

The total value of deposits in cryptocurrency lending vaults has surpassed $10 billion, rising from $4 billion at the beginning of last year. Investors are seeking ways to generate passive income from stablecoins and tokens. The vaults operate based on smart contracts, with returns ranging from 3% to 10% annually, and in more risky schemes, they can reach up to 20%. Among the investors are fintech companies, traditional entities, and hedge funds. However, high returns come with risks associated with low liquidity of collateral, which can lead to the loss of savings in the event of price drops. Additional risks include automatic liquidation mechanisms and cyberattacks. New solutions are emerging in the market, such as the lending vault from Two Prime, which utilizes Bitcoin and offers returns of 1.5% to 2% annually. The increase in the value of deposits has attracted the attention of regulatory institutions, which are considering new regulations.

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