Vault's higher yield compensates for the protection it offers to PWRD. The protection here is not against market risks (i.e. yield strategies delivering variable yields) but rather the risk of failures in a stablecoin or protocol (e.g., due to a protocol exploit). Such losses, if they incur, will first be absorbed by Vault holders, reducing the risk that PWRD holders will lose any assets. The utilisation ratio also determines how stablecoin assets are invested into underlying yield-bearing strategies.