Blockworks data show that deposits in crypto lending vaults exceed $10 billion, up from $4 billion at the start of last year. Vault curators choose investment strategies, set risk parameters and collect fees, similarly to fund managers. Typical strategies offer returns between 3% and 10%, while some riskier strategies offer 20% or more. Investors face risks from automatic liquidation, hacks and smart-contract coding errors. The US Securities and Exchange Commission said in July that the agency was examining how vaults may fall under securities laws. The European Securities and Markets Authority said proposed oversight of intermediaries is relevant where crypto service providers facilitate access to lending vaults.