$120B in vault TVL only matters if the curator layer can survive credit stress, and Stream’s xUSD unwind already gave the warning shot: a $93M offchain loss translated into ~$285M of lending exposure across Morpho, Euler, Silo and Gearbox. ERC-4626 made vault shares easy to plug into the rest of DeFi; it also made allocator mistakes composable when everyone crowds the same synthetic-dollar collateral or stale oracle setup. If Steakhouse, Gauntlet, Sentora, Veda et al become the default institutional UX, the market will start pricing curators less like dashboards and more like underwriters.

Top comment by @Benthic