Hey Edge readers,
By now, you should all know how important assesing DeFi risk to keep you informed is for us. This is why we teamed up with Token Terminal to create a dashboard showing you the latest data and analytics on the DeFi landscape. This tool breaks down on-chain and off-chain data into an easy to explore, clear format, giving you the confidence to make informed decisions without the guesswork.
Stay sharp. 🫡
- The Exponential team
Our dashboard in collaboration with Token Terminal is live! In here, you can find real-time data on key DeFi sectors such as staking, lending, market making, and bridging, giving you detailed insights on risk factors like slashing, collateral risk, impermanent loss, and centralization risk. Because let’s be honest, getting on-chain to look at all this data can be complicated with the excess of information out there.
The dashboard also features our Risk Ratings. allowing you to understand how they can be a game changer when doing your due dilligence across key DeFi jobs. Below are a few highlights:
- Staking has become DeFi’s backbone, with over 80% of TVL locked in protocols like Lido, but risks like slashing and centralization persist. Our ratings guide users toward safer staking options.
- Market Making drives liquidity but exposes users to impermanent loss and front-running. Exponential’s ratings help identify low-risk market making strategies.
- Lending fuels DeFi’s capital efficiency, yet liquidation cascades and undercollateralization threaten stability. Our ratings highlight protocols with robust risk management practices in place.
- Bridging connects DeFi’s siloed ecosystems but remains a prime target for exploits, as seen in the billions lost to historical bridge hacks. Exponential’s ratings steer users toward more secure cross-chain pools and assets.
Check all of this and much more. Explore the dashboard and dive into the data here:
In the news 🗞️
- Aave targets institutions and $19B Real-World Asset market with ‘Horizon’ initiative – Aave is shifting focus from retail traders to institutions with its new Horizon initiative, adapting its lending products for tokenized real-world assets like US Treasury bonds. Unlike its previous attempt, Aave Arc, Horizon may succeed as institutions like BlackRock embrace DeFi and regulations ease under the Trump administration. With $28B in deposits and a strong security track record, Aave’s move could signal a broader trend in institutional DeFi adoption.
- Aerodrome founder denies that Coinbase 'stabbed them in the back' – Coinbase’s choice to launch Verified Pools on Uniswap instead of Base partner Aerodrome sparked controversy, but Aerodrome founder Alex Cutler says it wasn’t a betrayal. Aerodrome opted not to prioritize the feature, focusing instead on long-term success. While some saw the move as a snub, Cutler emphasized Aerodrome’s close relationship with Coinbase, noting they remain aligned and in frequent communication.
- EigenLayer Expands Restaking Links with Mantle and ZKsync – EigenLayer is deepening its role in Ethereum’s modular security by integrating with Mantle Network and ZKsync. Mantle has adopted EigenDA for data availability, improving scalability and decentralization, while ZKsync now uses EigenDA for altDA and EigenLayer’s AVSs for decentralized zk proving. EigenLayer’s $9.4B TVL dominance is partly due to its lack of slashing, making it more attractive to stakers. As Ethereum restaking evolves, these partnerships highlight EigenLayer’s growing influence in decentralized infrastructure.