Twigmaester
630 posts
@twigmaester
Dev @BlockAnalitica | @TheDefiSphere lead
Sky Frontier Foundation has published its Sky Ecosystem Q1 2026 Report. Sky Protocol delivered its strongest quarter on record in Q1 2026, powered by accelerating USDS adoption, an expanding Sky Agent Network, and a growing collateral base. Q1 2026 Financial Highlights ↓
DeFi has lost between $730M and $3.1B to exploits every single year since 2021. TVL has swung from $175B peak to $45B trough and back above $100B. The loss rate as a % of TVL is 1–3% / year depending on the cycle. I've been thinking about a simple metric to price this risk: the DeFi Security Premium Ratio (DSRP). DSPR = Security Spend / TVL. Reported quarterly. Both sides verifiable on-chain. Five tiers: Hardened (>1%) / Protected (0.5–1%) / Baseline (0.2–0.5%) / Underspending (0.05–0.2%) / Exposed (<0.05%) DSPR acts as a yield pricing input. Low DSPR = higher required yield to compensate LP for security risk. High DSPR = protocol earns a lower cost of capital. We need a ratings mechanism on chain to price yield Any protocol that is underspending in security needs to be called out and either spend more, divert more fees to an insurance fund, or both @Blockworks you should add it to the token transparency portal. but now do one for protocol health L1s should also carve out % of validator rewards or fees to DeFi protocols taking security seriously Need to think more about how to verify and create manipulation-resistant security spend receipts @_SEAL_Org - any ideas?
EF Mandate reading by @chain_security was AN EXPERIENCE s/o to @EmilieRaffo and the team for putting this together! this kind of stuff happen only at @EthCC or @EFDevcon
This left me so motivated and also educated! A huge thanks to all the guests for being there, for coming on time, and for being honest & dedicated. We snapped a few photos, made a ton of notes, and discussed real practical steps (both for EF as well as for team-to-team research to follow up on). We hope to push a lot of the content discussed there out within the next few weeks 🦞
Today we're launching the new Sphere Dashboard. Real-time DeFi stablecoin lending analytics: rates, risk scores, liquidation data, and simulation tools across 270+ markets on Ethereum, Arbitrum, Base, Avalanche, and Plasma. defi-sphere.com
Yield is getting harder to evaluate. Chris Walker (@CWALK_19), definikola (@definikola), Andrew Hong (@andrewhong5297), Phil Mendes (@philbugcatcher), and Filip (@Hundert1000), on what sits behind DeFi yield, where risk gets hidden, and why transparency still lags complexity:
