A market maker is putting $100 million of its own money into DeFi vaults, and it wants everyone to see it there.
📌 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.
🔍 Why it matters
• 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.
• Curated vaults are becoming the way institutions touch DeFi: Vaults.fyi counted $8.6 billion across 788 vaults as of July, per CoinDesk.
• 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.
👀 What to watch
• Whether outside money follows GSR's anchor, which is the whole test of the model.
• 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.
💬 Does seeing a market maker's own capital in a vault make you more willing to deposit?
#DeFi #Aave #Vaults
📌 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.
🔍 Why it matters
• 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.
• Curated vaults are becoming the way institutions touch DeFi: Vaults.fyi counted $8.6 billion across 788 vaults as of July, per CoinDesk.
• 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.
👀 What to watch
• Whether outside money follows GSR's anchor, which is the whole test of the model.
• 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.
💬 Does seeing a market maker's own capital in a vault make you more willing to deposit?
#DeFi #Aave #Vaults