INSTITUTIONALIZING RISK CURATION IN DECENTRALIZED CREDIT

Summary from the TLDR Crypto newsletter

DeFi lending was restructured between 2022-2025 into a two-layer architecture where base protocols provide infrastructure while ERC-4626 vaults and third-party curators determine critical underwriting decisions. Aave maintains 45% market share with $34B TVL, while $7.27B in curated TVL is concentrated among top managers like Gauntlet (27.6%), Steakhouse (17.8%), and MEV Capital (12.6%). The research proposes minimal onchain disclosure standards for comparable risk assessment across vault strategies.