Covenant

Covenant is now live on @monad mainnet. Covenant splits assets into - Leverage tokens (high risk) providing 1-click looping, - Yield tokens (lower risk) to lock-in rates, but remain liquid. Covenant brings capital efficient credit markets to Monad, multiplying composable liquidity across DeFi. More details below!

@OttoSuwen 🤔

Are there any cool projects still building?

@Cointelegraph 👀

🇺🇸 JUST IN: SEC says certain crypto interfaces, including DeFi front-ends, wallet extensions, and apps, may operate without broker-dealer registration under conditions: • No custody of user funds (self-custodial only) • No investment advice or recommendations • No order routing or execution • Fixed, neutral fee structures only • No discretion over transactions or market activity

@0xFastLane x5 times better sleep with shMONx5 ...

The best yield comes while you sleep.

@AccountableData 👀 can't wait to tranche these...

Coming soon to a YieldApp near you.

@roycoprotocol @Morpho First tranched vault on @Morpho happened @monad x.com/covenantFi/sta… Coming soon to eth mainnet for better rates...

First tranched vault on @Morpho. The Senior side has averaged 5.6% APY over the past day, while the Junior side provides 7% coverage before Senior depositors take any loss. You can earn covered yield while the Junior side absorbs the risks. That's why they get paid more. Capacity is capped at $241,500 during testing. Interested in structured risk with real coverage? Check out what's live on Royco: dawn.royco.org/explore

@waleswoosh Does depositing all your $MON into $shMON and then leveraging it up to $shMONx5 count as selling? @0xFastLane @covenantFi

Monad is pushing new ATHs at $0.037 USD. 75% sold their entire airdrop. 5% sold more than half of their airdrop. 17% are still holding. Which group are you a part of?

@krakenfx tranching

What's the next big narrative in crypto?

@BrianInCrypto Every risk can be split... e.g., catastrophe bonds 'tokenize' the tail risk of improbable events... (long tail, ultra non-linear) @covenantFi is a tranching primitive to split risk in two

lmao we are introducing tranching to segregate risk in DeFi??? this isn't mortgage backed securities. DeFi risk is long tail, ultra non-linear. So what's the junior tranche going to get? 10,000% APR And the senior tranche? 0.5% APR. Tranching doesn't solve shit.

Where can I get all three? 🤔 • x2 $MON leverage (up 100% in last 10 days) • 20% APY (thx @0xFastLane) • No liquidations

@shafu0x 👀

ok we seriously have a big problem in defi rn The risk for the yield you get does not fucking make sense. You have the risk of loose everything. And for what? An extra 40 bps or something. Does not make any sense. No circuit breakers, no protections, nothing. Which would be acceptable if you get more yield. But you don't. Why would I put my money in Morpho or Aave when I can just put it into t-bills. Dao drama, north korea and hacks everywhere... We need to grow up or accept that on-chain lending is for people that cannot off-ramp for different reasons. (You know the reason lol) The solution? I don't know tbh. I wish I knew. Circuit breakers on the corpo chains would make a ton of sense imo. But yeah tradfi will eat defi if we don't fix things. Would love to open up a discussion here. Something I don't see? Potential solutions? I love defi. I was building in defi for 4 years. But I'm seriously considering moving everything to my bank account. Which is crazy to think about.

@santiagoroel This is caused by the structure of on-chain lending... Better approaches exist.

rates in DeFi are too low for the level of risk $11.7B sitting in Morpho vaults today at 2-4% APY. retail is funding these markets via exchanges thinking it's a savings account. it's not. they're taking real credit risk on crypto-collateralized lending no institution accepts near risk-free rates to come on-chain not all vaults are created equal. same 2-4% yield but completely different risk profile (different curators, collateral, LLTVs). retail picks the highest number. farmers will farm back in the day >100% APYs in DeFi made sense. you were compensated for the risk you were taking. DeFi is a different animal today but vol, historical dislocations, and looping strategies on crypto collateral still demand at least 300-400 bps above risk-free. we're nowhere near that. @LucaProsperi ran the math (see below). tldr - fair value spread on ETH/BTC-collateralized lending is 250-400 bps above risk-free. observed rates are a fraction of that last cycle we saw a lot of retail pour savings into algo stablecoins promising "risk free" yield. this cycle vaults have a lot of demand but they are mispriced for the level of risk. you're trusting someone to LP into vaults and trust the manager will manage position at least private credit earned you 12-16% go read this: open.substack.com/pub/dirtroads/…

yields today...

@daveontheway @monad 1⃣ ✅ 2⃣✅ 3⃣✅ 4⃣✅ 5⃣✅ 6⃣✅ 7⃣✅ 😅

After 1 week exploring the @monad ecosystem, I’ve found 3 (it could be 4, I am checking) DeFi projects that check all my boxes: 1⃣ Juicy APR 2⃣ Lower risk 3⃣ Strong composability between them 4⃣ Potential future airdrops 5⃣ Backed by top-tier players 6⃣ Interconnected with each other Anyone curious? Try to name the 3 (4) dApps I’m talking about 👀 Tag them below 👇👇👇

Try it out: app.covenant.finance Boost your points: rewards.covenant.finance

🚨 Points integration with @AccountableData Accountable incentives now flow with leverage to Covenant market participants. $aHYPERx5.USD now earns ~6% APY in Accountable points (in addition to Merkle + Covenant incentives)

Is 7% the on-chain risk-free rate? AAVE - 3% US Treasuries - 4% Covenant Senior Tranches (20% buffer) - 7%

rewards.covenant.finance for instructions...

Covenant Talents compound 10% boost if you link your X account 10% boost if you sign in with a referral Unlimited upsides if you are the referrer...

@CipherResearchx It's either fully DeFi, or it's not....

DeFi exploits in 2026 so far: Step Finance → $27.3M Truebit → $26.2M Resolv → $25M+ (today) SwapNet → $13.4M YieldBlox → $10.97M SagaEVM → $7M Makina → $5M IoTeX → $4.4M Aperture Finance → $3.7M Venus Protocol → $3.7M CrossCurve → $2.8M Solv Protocol → $2.7M FOOMCASH → $2.3M Moonwell → $1.8M TMX → $1.4M Total exploited since Jan 2026: ~$137M+ It's only March.