Curated DeFi vaults grew to $11.29B TVL (+39% YoY) but face concentration risk with 5 managers controlling ~69% of assets.
DeFi & Yields ·
Curated DeFi vaults have grown to $11.29B in total value locked, expanding 39% over the past year in contrast to the broader DeFi market, which saw supply-side TVL decline 41.8% in the same period. This divergence suggests investor interest in professionally managed vault strategies despite overall sector headwinds.
Concentration risk poses a significant structural concern within the curated vault ecosystem. Five managers control approximately 69% of the $11.29B in TVL, and many vaults share similar underlying asset exposures, amplifying correlated risk across the sector. This concentration means individual vault performance depends heavily on a small number of decision-makers.
Investors evaluating curated vaults should assess factors beyond advertised yields, including collateral composition, the discretionary authority granted to managers, and the practical mechanics of redemption. The current structure leaves open questions about how diversified vault strategies truly are and what happens during periods of rapid withdrawal demand.