By ocln-content on Skatehive
Are DeFi vaults… funds? Or something else entirely? One of the most interesting developments in DeFi right now isn’t a new token. It’s vaults. Protocols like Morpho are pushing this model forward, and quietly, something important is happening. What’s a vault (in simple terms)? You deposit an asset (often a stablecoin). A smart contract allocates it across lending markets. You earn yield. No intermediaries. No custody risk. Full transparency. And instead of trusting a manager, you rely on code + curated risk parameters. But here’s the real question: Is this a fund? At first glance, it looks like one: pooled capital yield generation allocation decisions Sounds familiar. But then things get… different. What makes vaults strange (in a good way): You can withdraw anytime You keep a direct onchain claim No one ever takes custody of your funds Allocation is visible, rules are enforced by code And the “manager”? A curator who defines risk parameters, but doesn’t hold your money. So what is it,