Silvio Busonero highlights the often-overlooked profitability of DeFi lending protocols, particularly Aave and SparkLend. He points out that vaults, which are built on these protocols, are not generating as much revenue as they pay in interest fees. This contradicts the common belief that distribution is the key to success in lending. In fact, lending protocols like Aave are making more money than the vaults and asset issuers such as Lido and Etherfi. The analysis breaks down the DeFi lending value chain, showing that lending protocols capture a significant share of the total market revenue, which exceeds $100 million. Busonero identifies different participants in the lending market, including users, lending protocols, lenders, and issuers. Each plays a role in the capital supply and demand, with lending protocols charging fees on borrowed assets. He emphasizes that while vaults aim to offer users yield with minimal management, the lending protocols are more profitable per unit of total value locked (TVL). For example, Mellow and Threehouse are highlighted for their performance fees, revealing that the protocols capture more value than the vaults themselves. This dynamic suggests that even as the market evolves, lending protocols will continue to hold a substantial competitive advantage over vaults and other market players.