DeFi lending lives and dies by trust. One of the biggest mistakes is trying to compare DeFi lending with AMM pools because they work in completely different ways. Lending only works when people believe the markets are sound, that collateral is solid, risk parameters make sense, and the system as a whole is stable. Once that trust breaks, you get the onchain version of a bank run. That’s why a model where anyone can spin up a vault permissionlessly and market it on the same platform has built-in weaknesses. Since most strategies are already commoditized, curators don’t have many ways to stand out. They either lower fees to the bone or take on more and more risk to attract capital from other pools. At some point, one big failure could wipe out confidence across the space and set the whole industry back. The next Terra Luna moment will come from a reckless curator on an open platform.