A market maker is putting $100 million of its own money into DeFi vaults, and it wants everyone to see it there.
๐ What happened
Per CoinDesk, crypto trading firm GSR committed $100 million, mostly as a multi-year credit facility, to Hare, a new business built with liquidity platform Turtle to create and manage on-chain vaults. The capital acts as anchor liquidity before outside investors arrive. Hare's first products run on $AAVE: a dollar vault that accepts major stablecoins and a gold vault that lets holders of Paxos' $PAXG and PAXGy earn yield, built with Paxos Labs.
๐ Why it matters
โข Hare CEO Connor Milner, formerly of DeFi fund Re7 Capital, told CoinDesk the point is that allocators see GSR's own capital in the same vaults as theirs.
โข Curated vaults are becoming the way institutions touch DeFi: Vaults.fyi counted $8.6 billion across 788 vaults as of July, per CoinDesk.
โข It is a crowded lane. Galaxy Digital launched a Morpho-based vault platform for Fireblocks' 2,400 institutional clients, and lender Two Prime introduced a bitcoin lending vault with $10 million of backing.
๐ What to watch
โข Whether outside money follows GSR's anchor, which is the whole test of the model.
โข The risk: vaults concentrate judgment in a curator. Collateral behaviour under stress is exactly what Hare says it assesses, and it has not been tested in a drawdown yet.
๐ฌ Does seeing a market maker's own capital in a vault make you more willing to deposit?
#DeFi #Aave #Vaults
๐ What happened
Per CoinDesk, crypto trading firm GSR committed $100 million, mostly as a multi-year credit facility, to Hare, a new business built with liquidity platform Turtle to create and manage on-chain vaults. The capital acts as anchor liquidity before outside investors arrive. Hare's first products run on $AAVE: a dollar vault that accepts major stablecoins and a gold vault that lets holders of Paxos' $PAXG and PAXGy earn yield, built with Paxos Labs.
๐ Why it matters
โข Hare CEO Connor Milner, formerly of DeFi fund Re7 Capital, told CoinDesk the point is that allocators see GSR's own capital in the same vaults as theirs.
โข Curated vaults are becoming the way institutions touch DeFi: Vaults.fyi counted $8.6 billion across 788 vaults as of July, per CoinDesk.
โข It is a crowded lane. Galaxy Digital launched a Morpho-based vault platform for Fireblocks' 2,400 institutional clients, and lender Two Prime introduced a bitcoin lending vault with $10 million of backing.
๐ What to watch
โข Whether outside money follows GSR's anchor, which is the whole test of the model.
โข The risk: vaults concentrate judgment in a curator. Collateral behaviour under stress is exactly what Hare says it assesses, and it has not been tested in a drawdown yet.
๐ฌ Does seeing a market maker's own capital in a vault make you more willing to deposit?
#DeFi #Aave #Vaults