[Analysis of On-Chain Lending Market Development and Vault Model Innovation] The on-chain lending market is undergoing a new development cycle, with the vault model emerging as a key innovation. Kraken has launched the DeFi Earn platform, channeling lenders' deposits into vaults and connecting them to protocols like Aave, offering up to an 8% annual percentage yield (APY). Bitwise has introduced a non-custodial vault strategy on the Morpho platform, while Coinbase previously launched its USDC lending service. The total value locked (TVL) in on-chain lending protocols has reached $58 billion, with active loans exceeding $40 billion and vault deposits surpassing $5.7 billion. Vaults achieve fund transparency through smart contracts, combining risk management and yield optimization to enhance the on-chain lending ecosystem. However, challenges such as liquidity risks and curators' discretionary power remain. On-chain credit reduces operational costs and is expected to improve credit accessibility.