Analysis of the Development of On-Chain Lending Markets and Innovations in Treasury Models

The on-chain lending market is experiencing a new development cycle, with the vault model becoming an important innovation. A certain exchange has launched the DeFi Earn platform, channeling lender deposits into vaults and connecting them to protocols such as Aave, offering up to 8% annual percentage yield (APY). Bitwise has introduced a non-custodial vault strategy on the Morpho platform, and another exchange previously launched a USDC lending service. The total value locked (TVL) in on-chain lending protocols has reached $58 billion, with active loans exceeding $40 billion, and vault deposits surpassing $5.7 billion. Vaults achieve fund transparency through smart contracts, combining risk management and yield optimization to drive the improvement of the on-chain lending ecosystem. However, challenges such as liquidity risk and curator discretion remain. On-chain credit reduces operational costs and is expected to enhance the inclusiveness of credit services.