Crypto lending vaults have attracted more than $10 billion in deposits, as investors seek returns on their digital assets, according to the Financial Times.

Deposits have risen from $4 billion at the start of last year, highlighting growing demand for strategies that put stablecoins and other tokens to work.

Vaults operate through smart contracts on decentralized finance platforms. Each has a “curator”, effectively an investment manager, who selects lending strategies, sets risk limits and collects fees. Returns typically range from 3% to 10%, although riskier strategies can generate as much as 20% or more.

The appeal comes with considerable risks. Loans can be backed by illiquid tokens, crypto-backed stablecoins or tokenized private…