A Systematization of Knowledge on DeFi Vaults: Architectures, Curation Mechanisms, and Strategy Design

Decentralized Finance (DeFi) vaults represent sophisticated smart-contract-based asset management systems that pool assets and execute pre-programmed strategies. Their evolution has led to the emergence of a 'curation' layer, responsible for strategy selection, risk configuration, and operational coordination. This introduces new principal-agent dynamics and potential failure points within these systems.

The evolution of DeFi vaults and the introduction of a 'curation' layer signify increasing complexity and centralization within decentralized financial ecosystems. Understanding these architectures, and the associated principal-agent dynamics and failure modes, is crucial for developing robust financial infrastructure and managing emerging risks in the digital asset space.

DeFi vaults are asset management systems operating via smart contracts, pooling deposits and executing programmable strategies.

Forward consideration, not a verified fact.