Curated DeFi vaults have reached a new milestone, collectively holding $11.29 billion in assets, with just five managers overseeing more than two-thirds of the total, according to a report released by vaults.fyi on August 24.
Market grows but remains highly concentrated
Analyses from vaults.fyi and DeFiLlama confirm that the curated DeFi vault sector has become intensely concentrated. While the two platforms differ on the total value locked (TVL) figures due to distinct methodologies in counting vaults and protocols, both agree that market share is clustered among a handful of players.
Vaults.fyi identified 131 curators across 18 protocols overseeing 856 vaults, with data accurate as of August 20. Its survey found that 69.3% of all curated DeFi assets are managed by only five curators.
This level of concentration has implications for risk, as depositing funds across different vaults does not necessarily diversify exposure if most are managed by the same teams. Curators are responsible for selecting markets, determining acceptable collateral, setting cap limits, and managing risk profiles, so the decisions of a few managers affect thousands of depositors.
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The choices made by these five curators shape the risk landscape for a majority of capital in the curated DeFi market, as their portfolios now encompass over two-thirds of the total assets.
Over the past twelve months, the curated sector’s share has risen from 5.24% to 12.51% of supply-side DeFi TVL. The sector expanded by 39%, even as the broader supply-side market shrank by 41.8%.
Morpho emerges as market leader
Morpho, an Ethereum-based decentralized lending protocol, is the dominant player, accounting for 46.2% of all curated capital across supported chains such as Ethereum and Solana. The remaining share is distributed among 17 other protocols.
This leading position stems from Morpho’s innovative approach, specifically through its Morpho Blue and MetaMorpho systems, which separate core lending functions from risk management. This structure enables external managers to design distinct lending markets packaged within individual vaults.
Traditional finance institutions are starting to participate in curated vaults. Bitwise Asset Management recently partnered with Morpho to introduce non-custodial vaults, with the initial product targeting an annual return of 6%. Bitwise also forecasts that onchain vaults—referred to as “ETFs 2.0”—will double assets under management in 2026.
Within Morpho’s top 25 stablecoin vaults, which collectively hold $3.71 billion, bitcoin collateral accounts for 54.1%. This structure means depositors may unknowingly be exposed to bitcoin’s liquidity and liquidation risks even when holding positions in stablecoins such as USDC.
Mini dictionary: Morpho is an open-source decentralized lending protocol that facilitates the creation and management of onchain credit markets, allowing external managers to customize risk and lending terms within vaults on multiple blockchain networks.
| Curator | Share of Curated TVL (%) | Network Example |
|---|---|---|
| Morpho | 46.2 | Ethereum, Solana |
| Other 17 protocols (combined) | 53.8 | Various |
Shifts in the top curators and increased institutional participation
Over the past year, the ranking of DeFi curators has evolved. Concrete and Sentora, which were absent from the rankings a year ago, now hold positions four and two, respectively. Usual, which was previously in fourth place, has dropped to thirty-fourth. The report attributes this shift to market stress events and notes that after issues involving Stream and Resolv, capital consolidated among stronger and more resilient management teams.
A study by DeFiLlama using July data supports the trend toward concentration. Sentora data from DefiLlama lists the top three curators—Steakhouse Financial ($2.03 billion), Sentora ($1.97 billion), and Gauntlet ($1.46 billion)—as controlling 75.9% of the $7.18 billion tracked TVL. The top five curators together account for 80.9%.
Non-crypto financial giants are also increasing their presence in the curated vault sector. Apollo collaborated with Securitize, Midas joined forces with Fasanara, and JPMorganChase announced the launch of tokenized money-market fund vaults.
In May, market maker Wintermute rolled out Armitage, its own curation platform, which can handle collateral types that other curators typically avoid because Wintermute is able to manage liquidations independently.
Despite ongoing concerns over security—including a surge to 207 DeFi exploit incidents in the first half of 2026 compared to 83 in the same period last year—assets continue to flow into curated DeFi vaults.
TRM Labs recorded more than twice as many DeFi exploits in the first half of 2026 as in all of 2025, highlighting ongoing risks even as institutional interest in curated vaults accelerates.
