exponential.fi

DeFi is safer than you think. 1. Risk is predictable and overstated. Backtested data shows A-rated protocols like Aave, Morpho, and Yearn had zero defaults or losses, even during major exploits. 2. The protocols powering today’s yields are extremely resilient. Curve and Euler recovered from major events without user losses, thanks to strong design and community response. 3. There’s alpha in understanding risk. Many well-rated pools offer strong, sustainable yield, and the market hasn’t caught up. Get the full breakdown 👇👇👇 assets.dlnews.com/dlresearch/DL_…

Yield is just compensation for risk. Prioritizing risk-adjusted returns over blind APY chasing is the way to build sustainable, capital-preserving strategies.

Why did YO choose @AcrossProtocol WBTC as a yield source for yoBTC? ✅ BTC-denominated yield from real crosschain demand ✅ Fees earned via intent-based bridging ✅ Canonical rollup security with optimistic verification @ExponentialDeFi rates Across WBTC as “low risk” (B).

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Top crypto + DeFi news this week 🗞️ 🔹YO Labs raises $10M Series A led by Foundation Capital with Coinbase Ventures participating, bringing total funding to $24M for cross-chain yield optimizer 🔹Stream Finance founders sue partner alleging $93M misused to cover personal trading losses, contributing to protocol collapse and DeFi contagion 🔹Coinbase announces native Solana DEX trading inside its app, enabling on-chain token access without formal CEX listings via built-in DEX

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Top crypto + DeFi news this week 🗞️ 🔹 Yield Basis activates fee switch after $130M Bitcoin deposits, allowing eligible users to claim 17 BTC (~$1.6M) in revenue from leveraged Curve strategies 🔹 Terminal Finance shuts down after Ethena's Converge blockchain fails to launch, leaving the fully built DEX without its intended ecosystem 🔹 Polymarket users suspect insider trading after wallet 0xafEe profits $1.15M betting on Google's most-searched person d4vd at 0.2% odds

Read the full edition in our latest Edge newsletter: edge.exponential.fi/p/everything-y…

Beyond data improvements, Fusaka delivers tangible user experience enhancements and security upgrades: • Apps can now offer "early confirmations" that feel almost instant by peeking ahead to see who will propose the next block • Wallet security gets modernized through device-native passkey support (Face ID, fingerprints, hardware-backed security) • New transaction size limits prevent oversized operations from slowing the entire network • Slightly increased block capacity gives the base layer more breathing room for daily activity

Ethereum's Fusaka upgrade is here 🚀 Our new Edge newsletter edition is out covering Ethereum's latest network upgrade. Fusaka. Here's how this upgrade changes everything for users and developers alike 🧵

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Top crypto + DeFi news this week 🗞️ 🔹 Tokenized gold shines as crypto investors search for safety. While DeFi TVL fell from $177B to $118B and BTC dropped 24% this month, tokenized commodities grew to $3.63B market cap with 167,400 holders. 🔹 Yearn's yETH vault hit by complex $9M exploit. Attacker minted "infinite yETH," drained ~$9M from Curve pools, routed 1,000 ETH through Tornado Cash before team recovered $2.4M in pxETH. 🔹 DeFi TVL drop masks steady growth under the hood. Despite 30.9% TVL fall from $178B to $123B since October, DEX volumes hit $360B in November and Aave TVL at $32B nearly doubled from last year.

Read the full analysis in our latest Edge newsletter: edge.exponential.fi/p/here-s-why-c…

The numbers tell the story of institutional crypto exposure: • November was Bitcoin's second-worst month of 2025 • Spot Bitcoin ETFs saw $3.4-3.5B in net outflows - largest since launch • Nearly $1B in levered crypto positions liquidated during today's selloff • Bitcoin now sits in corporate balance sheets, ETFs, and multi-asset portfolios When macro desks derisk, BTC is in the basket to sell alongside traditional risk assets.

Our new edition of the Edge newsletter is out 📊 Crypto markets are in turmoil over the unwinding of the Yen carry trade. Bitcoin dropped 8% to below $84K, with the Bank of Japan signaling potential rate hikes that could reshape global risk appetite. Here's how Japan suddenly became crypto's biggest macro risk 🧵