Institutionalizing risk curation in decentralized credit

This paper maps the emerging market for decentralized credit in which ERC 4626 vaults and third-party curators, rather than monolithic lending protocols alone, increasingly determine underwriting and leverage decisions. We show that modular vaults differ in capital utilization, cross-chain and cross asset concentration, and liquidity risk structure. Further, we show that a small set of curators intermediates a disproportionate share of system TVL, exhibits clustered tail co movement, and captures markedly different fee margins despite broadly similar collateral composition. These findings indicate that the main locus of risk in DeFi lending has migrated upward from base protocols, where underwriting is effectively centralized in a single DAO governed parameter set, to a permissionless curator layer in which competing vault managers decide which assets and loans are originated. We argue that this shift requires a corresponding upgrade in transparency standards and outline a simple set of onchain disclosures that would allow users and DAOs to evaluate curator strategies on a comparable, money market style basis.