GSR commits $100 million to launch onchain credit vaults
GSR is committing $100 million, mostly as a credit facility, to Hare’s Aave-powered dollar and gold vaults, putting onchain credit underwriting to the test.
By Blockchain Today Editorial3 min read
GSR is committing $100 million to Hare, a new business that will build and manage onchain credit vaults with liquidity platform Turtle, in a bet that investors will want more than tokenized assets sitting idle. The commitment is multi-year and will mostly take the form of a credit facility, with GSR providing anchor liquidity before other investors arrive, according to CoinDesk’s report on Hare’s launch.
The move shifts GSR beyond its trading and market-making business into managing how capital is deployed. Hare’s first products are designed to make dollar stablecoins and tokenized gold productive through lending markets. That puts the firm in a growing market for curated vaults, where managers choose strategies and bear responsibility for assessing the assets and risks behind them.
What will Hare’s first vaults hold?
Hare plans to launch two Aave-powered products: Hare USD Earn, which will accept major dollar stablecoins in one vault, and Hare Gold Earn, which will let holders of Paxos’s PAXG and PAXGy tokenized gold earn yield. Paxos Labs is partnering on the gold product, CoinDesk reported.
Vaults pool deposited assets in smart contracts, while a curator decides where to deploy the capital. In this case, the stated focus is credit: Hare says it will assess collateral, counterparties and how positions could behave under market stress. GSR’s capital is meant to provide early liquidity, but the $100 million is a commitment to Hare’s products, not a report of money already deposited by outside investors.
The scale of the existing market gives context to the launch. CoinDesk cited Vaults.fyi data showing $8.6 billion across 788 curated vaults as of July, with 1.4 million reaching them. Those figures describe a broad category, not Hare’s share of it or a forecast of its returns.
How does Hare differ from other vault businesses?
Hare’s emphasis on credit underwriting distinguishes it from some alternatives, though the products still depend on lending protocols. CoinDesk reported that Two Prime recently introduced a bitcoin lending vault built on Pareto with $10 million of backing, while Galaxy Digital’s Galaxy Curator uses Morpho and gives Fireblocks’ 2,400 institutional clients access to onchain yield strategies.
GSR’s CEO framed the gap as a shortage of underwriting for risks that do not show up directly onchain. In a company-authored interview, GSR’s Connor Milner said DeFi curators are familiar with smart-contract and oracle risks but may have less expertise in underlying offchain credit risk. That argument explains Hare’s pitch: assess not just the vault contract or lending market, but also collateral and counterparties. It is a view from the company building the product, not an independent assessment of Hare’s risk controls.
What risks and signals should investors watch?
Vaults can make deposits easier to allocate, but yield does not remove credit, liquidity or smart-contract risk. Milner said Hare intends to simulate redemption stress and explain how much liquidity could be available immediately, after seven days or later. Those were examples of possible liquidity intervals in his interview, not published withdrawal terms for either product.
The next evidence will be operational: the vaults’ launch, their actual assets and deployment strategies, and the liquidity terms investors can use. Hare’s ability to communicate how collateral and counterparties are assessed will also matter, especially if market stress tests whether the vaults can meet withdrawals on the timelines depositors expect.