Vaults are a great primitive for onchain asset management.
But vault-curated lending markets are a different story.
You are trusting a curator to set the right risk parameters and pick the right collateral. The vault abstracts this so deeply that users cannot accurately assess their actual exposure.
This is not theoretical. During the Resolv exploit, curators had hardcoded USR at $1.
Borrowers with legitimate positions got liquidated at distorted prices. The Public Allocator then kept automatically routing more funds into the broken markets because high utilization spiked the yields.
This is exactly what DeFi was built to replace. Yet somehow this is being sold as the endgame of onchain lending.
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