DeFi power shifting from protocols to risk curators, says Tiger Research

Asian Web3 research and consulting firm Tiger Research argued in a new report that power in the DeFi lending market is shifting from protocols to risk curators. The report explained that as the on-chain lending structure becomes more specialized, curators responsible for collateral selection and risk assessment are effectively acting as asset managers. While the current market size is small at approximately $7 billion, it is in an early phase where capital is concentrating among top players. For institutions, the key to entry is not simply deciding whether to participate in DeFi, but choosing which decision-making powers to delegate and which to control directly. The level of control and the risks involved will differ based on three entry strategies: distribution, supply, and management.