DeFi Sphere
27 posts
@TheDefiSphere
Institutional-grade DeFi lending intelligence. Real-time rates, risk scores, and analytics across top lending protocols. Powered by @BlockAnalitica.
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?
Weekly Yield Thread 3/31 1/ Macro Overhang Keeps Yields Pinned With geopolitical conflicts showing no immediate signs of alleviation, crypto majors remain under pressure, and organic demand for leverage is struggling to mount a real recovery. The onchain reality clearly reflects thr macro hesitancy: Funding Stays Flat: Funding rates are still struggling to climb, with the 1-week average funding benchmark currently sitting at a mere 1.30%. Borrowing Costs Pinned: Onchain stablecoin borrowing costs remain trapped in the 3.5% to 4% range, clocking a 1-week average of 3.44%. Tracking the Baselines: These sluggish borrowing costs are closely tracking the major foundational yields across DeFi, heavily anchored by the Sky Saving Rate at 3.75% and Ethena's sUSDe APY at 3.5%. Supply Yields: Consequently, the 1-week average stablecoin supply APY is hovering down at just 2.24%.
Morpho's active loan market share has reached another all-time high, driven primarily by organic, sustainable stablecoin-denominated demand.
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
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
