<\/p>\n
Automated yield vaults have led the growth, as large investors dominate capital flows.\n<\/p>\n
On-chain asset management is having a strong year, with assets under management (AUM) more than doubling in 2025, according to a new report from investment firm Keyrock and on-chain asset manager Maple Finance<\/a>.<\/p>\n The report found that total AUM across automated yield strategies, discretionary strategies, structured products, and on-chain credit surged 118% to $35 billion so far this year. <\/p>\n Three protocols \u2013 Morpho<\/a>, Pendle, and Maple itself \u2013 account for 31% of the total. Morpho boasts a total value locked (TVL) on-chain of $7.14 billion, while Pendle has a TVL of $8.3 billion, and Maple\u2019s TVL stands at $2.7 billion, per DefiLlama<\/a> data. <\/p>\n Most depositors are small investors, referred to as \u201cshrimps,\u201d who hold less than $10,000 in on-chain protocols. However, the majority of capital comes from larger investors \u2013 \u201cdolphins\u201d (more than $100,000) and \u201cwhales\u201d (more than $1 million) \u2013 who provide 70-99% of total on-chain AUM. <\/p>\n Moreover, the report identified automated yield as the primary entry point for allocators, marking the largest share of AUM at $18 billion. <\/p>\n The findings show that on-chain strategies are no longer experimental. Instead, they deliver competitive returns and are often more transparent and accessible than traditional financial products. <\/p>\n However, the findings did highlight several risks for on-chain strategies, including smart contract exploits, limited market capacity, and variable returns. <\/p>\n \u201cThe evolution of on-chain asset management in 2025 has demonstrated that on-chain strategies are a viable, scalable component of the global financial landscape,\u201d the report reads.<\/p>\n \u201cOnchain asset management is the blueprint for the next generation of capital markets, in that it is programmable, transparent, and composable by default.\u201d<\/p>\n Specifically, automated yield vaults are outperforming traditional passive investments by about 186bps after fees, the report notes. Meanwhile, discretionary strategies deliver returns similar to TradFi. <\/p>\n Structured products and on-chain credit earn slightly less after fees but still perform well, with structured products at 10.3% APY, discretionary strategies at 9.7% APY, automated strategies 8%, and on-chain credit 7.5%. <\/p>\n Looking ahead, the report\u2019s authors say the next phase of on-chain asset management will be shaped by the \u201cinterplay between innovation, composability, and institutional adoption.\u201d <\/p>\n They project that AUM could grow from $35 billion to $64 billion in the coming cycle and eventually become \u201cembedded infrastructure for global allocators,\u201d as driven by stronger governance, deeper liquidity, and a rising number of institutional investors. <\/p>\n Keyrock is a global crypto investment firm specializing in market making, OTC, and options trading, while Maple is an on-chain asset manager with $4 billion in AUM.<\/p>\nOn-Chain vs. TradFi<\/h2>\n
Growth is Coming<\/h2>\n