OriginalSK

We're seeking renewal as @CurveFinance's risk provider for 2026–2027. Curve is a powerhouse of DeFi innovation, and we are grateful to have the opportunity to serve this community. Partners since 2022 🤝 Here's what's next 👇

@SoFi, @WesternUnion, and @Klarna are all launching custom stablecoins. US and EU law both bar issuers from paying yield to holders. That structural yield vacuum positions @aave as the default savings layer for millions of retail users entering crypto. Our latest research below🧵 Distribution at scale — not from crypto, but from legacy finance. Unlike native DeFi assets, custom stablecoins plug into massive existing networks. Klarna serves 100M+ users. WesternUnion operates 500k agents across 150+ countries. SoFi adds a bank-regulated reserve layer designed to underpin whitelabel issuances by other institutions. This creates a direct on ramp for non crypto native retail capital into Aave, no DeFi interface required. Regulation creates the yield gap Aave fills. Both MiCA and the GENIUS Act prohibit stablecoin issuers from paying interest directly to holders. This isn't incidental, it's a structural constraint that forces yield generation to third party venues. Aave becomes the natural savings layer, helping issuers retain users while staying compliant. With over $400M in PYUSD already deposited on Aave at filled caps, early market validation is visible. V4's Hub-and-Spoke architecture is purpose-built for this. Dedicated, conservatively parameterized spokes allow Aave to onboard custom stablecoins and generate yield on otherwise idle assets without contaminating broader liquidity pools. Issuers get embedded yield infrastructure. Aave gets retail-scale deposit flow. Three risk vectors demand close monitoring. First, fragmentation: excessive issuance by entities chasing branding rather than operational utility dilutes liquidity and hurts merchant adoption. Second, closed-loop design: issuers may restrict transfers to internal ecosystems, killing DeFi composability entirely. Third, centralization: issuers retain freeze and clawback authority over tokens, a counterparty risk that depositors and borrowers must price in.

Working with @CurveFinance since 2021. Here’s our latest update on our progress. 🦙 We focused on proactive risk management, $crvUSD stability, oracle upgrades, governance, YieldBasis research & market optimization, strengthening Curve’s resilience, and LlamaLend v2 prep. Here are some key highlights from the report: • Secured a 250,000 OP grant from @Optimism to bootstrap LlamaLend v2 • Protocol revenue continued to grow steadily • LlamaLend v2 prep & coordination with Swiss Stake on audits, launch sequencing, and specs • Developed new risk frameworks for upcoming markets • Contributed to improved crvUSD stability • Contributed towards designing more robust oracles for Llamalend markets • Submitted 26 governance proposals across LlamaLend, crvUSD, and AMMs with great engagement

As 2025 draws to a close, we want to express our deepest gratitude to our clients, partners, and fellow service providers building alongside us. From launching LlamaGuard NAV to expanding our team, we are forging a safer DeFi future. Read our full end-of-year statement below 👇 As we close the year, we’ve found ourselves returning to a simple idea that has grounded us throughout 2025: our work is fundamentally an act of service to the people who build, secure, and rely on open financial systems. DeFi is often described in terms of protocols, models, or code, but what inspires us most is the human network behind it: clients, partners, our fellow service providers, and the DeFi users who depend on the systems we help safeguard. This community constitutes a large extended family, and we are grateful to play our small part in supporting it. Thank you for trusting us, challenging us, collaborating with us, and sharing in our vision for a safer, more transparent, and more resilient on-chain world. Highlights this Year This year marked meaningful steps forward in our mission: Make DeFi win through transparent and rigorous risk management. 🔹 Onboarded as Risk Partner for Aave Horizon Horizon represents the frontier of TradFi–DeFi convergence, and we’re honored to serve as its risk partner. Our work spans onboarding asset issuers, implementing risk alerting systems, managing protocol parameters, and helping to ensure safe and competitive growth for the ecosystem’s leading institutional venue. 🔹 Launched LlamaGuard NAV on Aave Horizon We introduced LlamaGuard NAV, a next-generation risk-aware NAV oracle developed with our partners Chainlink Labs and Aave Labs. As DeFi applications scale into more complex data environments, real-time, transparent risk intelligence becomes core infrastructure — and we’re proud to contribute to that foundation. 🔹 Expanded Real-Time Transparency with PoR Systems Our independent PoR work with Ethena strengthened our conviction that the industry needs robust, credibly neutral, high-frequency reserves attestations. This year’s progress set the stage for a generalized, automation-ready PoR framework that can support a broad set of issuers and markets. Stay tuned for exciting updates on this topic. 🔹 Prepared Curve for LlamaLend V2 We supported Curve with research for safe debt ceilings, oracle configurations, and market parameterization for LlamaLend V2. We also developed new interest rate models for looping markets and built the risk foundations for PT markets — now progressing through audit. A Year of Collaboration We’re grateful to our core partners for the collaborations and your continued trust in us this year: @aave, @chainlink, @CurveFinance, @ethena 🎄 As a small nod of appreciation, our holiday card features ornaments representing teams we believe exemplified excellence this year. We’re grateful to be learning from and building with you. Every step forward this year was shaped by the teams who worked alongside us — developers, asset issuers, risk contributors, growth teams, and service providers. Whether we were designing collateral methodologies, refining PoR standards, or implementing new risk primitives, your insight and partnership consistently elevated the work. In a year defined by rapid innovation and increasing complexity, your partnership grounded us. It reinforced our belief that DeFi thrives when we operate as a true extended family: supporting one another, learning from one another, and working collectively to make the ecosystem safer and more resilient for everyone. Looking Ahead In 2025, we focused deeply on a small group of core protocol partners, investing in their systems and communities. That commitment remains unchanged. But the demand for reliable, real-time risk tooling continues to grow — and with it, our responsibility to support a larger share of the ecosystem. To meet this need, we’re expanding LlamaGuard automations, transforming our methodologies into scalable, on-chain risk infrastructure. Our roadmap includes: Risk-managed price feeds that strengthen oracle reliability and market integrity A generalized proof-of-reserves framework adaptable to diverse issuers and asset structures Automated implementations of risk methodologies, enabling continuous, verifiable oversight at protocol scale Delivering these systems requires close collaboration across the stack: working with Chainlink on foundational automation and oracle infrastructure; partnering with risk and growth teams to operationalize their methodologies; and supporting asset issuers in meeting the increasingly rigorous expectations of their clients. Our goal is straightforward: scale high-quality risk management to more protocols, more assets, and ultimately more users. By extending our reach without sacrificing depth, we plan to maximize the benefit to the millions of people who rely on DeFi every day. We’re Hiring The industry’s growing focus on responsible risk management has led to a significant expansion in demand for our work — and we’re scaling our team accordingly. In 2026, we’re hiring across: Quantitative Research Backend & Smart Contract Engineering Business Development Marketing & Communications If you’re energized by the challenge of building the risk infrastructure that will underpin the next decade of DeFi, we’d love to hear from you. Visit our careers page or reach out on Telegram. Final Thoughts As we enter the new year, we remain committed to: putting people at the center of our risk frameworks, building tools that empower protocols and users alike, strengthening the foundations of open, transparent finance, and serving this extended family with humility, rigor, and heart. Thank you for being part of our journey. Wishing you a warm and restful holiday season — from all of us at LlamaRisk. Here’s to a safe, collaborative, and inspired 2026. ❤️

We’re excited to share that as part of @aave’s onboarding of @strata_fi’s PT-srUSDe, the Strata team has committed to launching a public bug bounty program in Q1 2026. A strong move that reinforces trust, boosts user protection, and strengthens the ecosystem’s security baseline.

@GHO is evolving beyond purely crypto-native backing. Through the Horizon market, @aave’s stablecoin is partly backed by RWAs, such as @SuperstateInc's USCC (CME Futures/T-bills). In our latest LlamaRisk Insights, we explore this material shift and unpack GHO’s balance sheet. 🧵 To understand GHO's true backing, look past the Total Minted Supply ($441.8M) to the Circulating Supply ($326.2M)—the actual debt held by users. GHO origination isn't a single entry point; it flows from four distinct venues: the foundational Ethereum Core Market, the Prime Market, the GSM (peg stability), and the RWA-focused Horizon Market. While Core drives retail origination, Prime and Horizon use Direct Minters to support strategic demand. A prime example is @ResolvLabs borrowing GHO against USCC collateral—a move facilitated by @Token_Logic. This mechanism serves as the bridge, bringing RWAs onto GHO's balance sheet. This integration has materially diversified GHO. USCC is now the third-largest collateral asset, representing ~9.2% ($68.4M) of total backing. This exposure acts as a volatility dampener. By integrating assets uncorrelated with broad crypto-beta, the protocol decouples GHO’s stability from the cyclical volatility of ETH and BTC, effectively lowering overall portfolio risk. The Trade-off: The protocol prioritizes collateral diversity and bootstraps novel use cases over immediate revenue maximization. While Horizon yields lower fees than the volatility-driven Core market, it creates a scalable foundation: GHO's circulating supply can now grow significantly without proportionally increasing portfolio volatility. Looking ahead, market conditions may drive similar demand for other high-yield RWAs, including Collateralized Loan Obligations (CLOs), further expanding this diversification strategy.

Navigating relationships between contracts has always been way too hard and slow (dozens of tabs and chats). Not anymore, with the Herd contract visualizer - take any contract/transaction page and click "visualize" to see all the function and variable relationships.

As part of the @aave onboarding, we collaborated with @Paxos to enhance security. We're pleased they've committed to a public bug bounty in Q1 2026 covering their assets (USDG, PYUSD, PAXG, USDP) & APIs—a shared win for the ecosystem! LlamaRisk USDG review & confirmation ↓

In our series on bug bounties for @Aave listed assets, today we focus on @monerium. With $23M+ in circulation, lacking a bug bounty leaves critical parts of the ecosystem exposed. Bug bounties are a vital defense layer. Hey Monerium, here's how your program can be improved👇 Monerium currently does not have a publicized bug bounty program. The lack of a bug bounty removes a critical layer of security, weakening incentives for ethical hackers and limiting risk identification to internal teams and periodic audits. As the first onchain Euro stablecoin, EURe, currently secures over $23 million. We believe that a bug bounty program with a max bounty of at least $50,000 should be introduced to protect these funds. A minimum bounty of this size would incentivize skilled researchers to identify any potential vulnerabilities. Although centralized issuers like Monerium rely on regulatory and legal frameworks for post-incident recourse, these reactive measures cannot prevent exploits targeting critical infrastructure, custodial keys, or operators themselves. A robust bug bounty program provides the proactive safeguard needed to reduce reliance on after-the-fact interventions.

Introducing LlamaGuard NAV ⛊ A next-gen oracle for RWAs, built with @chainlink & @aave, is going live in production on Aave Horizon. It delivers dynamic, risk-adjusted NAV feeds with automated safeguards, powering secure and scalable DeFi. Read the full announcement ↓

1/📐 How do you update DeFi interest rate models without spooking the market? In Curve’s CRV-long LlamaLend market, we use a stepwise transition — rate changes only happen when the market is ready. Why? Switching IRMs too fast can cause sharp, unexpected drops.👇 🧵A thread:

Must say it’s always a pleasure reading research by @LlamaRisk - they’re the best researchers in all of DeFi imho Their recent coverage of @symbioticfi was another banger llamarisk.com/research/curre…

@coinstats ☝️

#Bitcoin is up 3% this month! Welcome to Uptober 🚀

@SuperSportTV How come you're not showing the Villa game when you're TV guide says otherwise???