2 hours ago
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Key Takeaways
- S&P Global Ratings has launched a framework for assessing on-chain lending-vault risk.
- It examines credit, liquidity, curator, blockchain, protocol, security and governance risks.
- The assessment is not a credit rating and does not judge whether a vault’s yield is attractive.
- S&P has not yet published individual Vault Risk Assessments.
A vault turns a deposit into a managed position
A lending vault pools deposits and deploys them under a defined strategy. If someone deposits $1,000 of USDC, they receive a token representing their share of the pool. That capital may be lent through selected markets, allocated by smart-contract rules or managed by a person or team known as a curator.
The share token is a claim on the vault’s assets and results; it is not a promise of a fixed return. Its value depends on borrowers repaying, the pool keeping enough liquidity for withdrawals and the strategy continuing to operate within the limits depositors expected when they entered.
Those questions become more consequential a...
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