This week, we analyze the largest DeFi TVL contraction since 2023, driven by a rare convergence of institutional outflows through ETFs, BTC sustained weakness below $100,000, and a DeFi protocol-level contagion event centered on Elixir and Stream Finance stablecoins. The data reveals a market undergoing risk-off positioning across all major venues, while the these stablecoin collapses expose hidden structural fragilities in synthetic stablecoin architectures and risk curation models.

DeFi doesn’t fail for lack of innovation; it fails due to unmanaged technical and economic risks. Sentora’s framework turns awareness into discipline: quantifying, monitoring, and enforcing risk controls across assets, protocols, and vaults.

Welcome to Crypto Risk Review, your concise and clear resource for quickly understanding and navigating crypto and DeFi market risks. Each edition provides a snapshot of critical risk factors and actionable insights derived from Sentora's DeFi Risk platforms.

The events of the past week pushed the DeFi risk discussion to the forefront; in practice, risk ownerships depends on the protocol, the asset, and the curator. In this article, we break down how to classify risk ownership across these layers so LPs can deploy with clarity.

It was a volatile week for DeFi: multiple high-risk events hit in quick succession, and a risk-off macro tone compounded the damage, sending crypto lower. Let’s dig in.

DeFi is grappling with a moderate liquidity crunch, characterized by DeFi outflows, protocol pauses, skyrocketing borrow rates, and cascading risks of liquidations. 

On‑chain activity across major altcoin networks has cooled for roughly six months. Active addresses, new users, and on‑chain volume have softened, while the total altcoin market cap sits well below prior cycle highs. This resembles the early to mid phase of past altcoin winters. It is not conclusive, but the burden of proof is now on a decisive trend reversal.

Welcome to Crypto Risk Review, your concise and clear resource for quickly understanding and navigating crypto and DeFi market risks. In this edition we dive into the negative carry for a common strategy around sUSDe and the potential impact of digital asset treasuries (DATs) selling their ETH holdings.

In this week's newsletter, we explore Hong Kong's approval of the first Solana ETF and Aave's onboarding of Maple's institutional yield assets

This week we dive into the two key events shaping the DeFi landscape: the October 10 “Black Friday” market crash, which triggered over $19 billion in liquidations (the biggest liquidation event in crypto history) and exposed vulnerabilities in centralized trading infrastructure, and Hyperliquid’s HIP-3 launch, a permissionless upgrade enabling builders to deploy custom perpetuals markets with potential to expand on-chain derivatives volumes by 10–20x.

The SEC's Division of Corporate Finance issued non-binding guidance stating certain liquid staking tokens (LSTs) may not be securities. This applies only if the tokens are simple receipts for assets used in proof-of-stake blockchain maintenance. The guidance is fact-specific and excludes tokens tied to investment contracts or additional revenue-generating activities.

The Oct 10 Flash Crash caused ~$19B in liquidations. DeFi lending protocols like Aave and Morpho stayed resilient, avoiding bad debt. Key risks: collateral concentration in smaller chains and unstable strategy vaults. Featured: Dolomite Risk Radar.

Earning sustainable yield on long-term blue-chip holdings while maintaining full upside exposure to the underlying assets.

Welcome to your weekly Sentora crypto newsletter. As Plasma’s mainnet celebrates its first full week, the DeFi landscape is witnessing a seismic shift. The Layer 1 blockchain has surged past a staggering $5.6B in TVL, fueled by outstading stablecoin yields, zero-fee USDT mechanics and strong institutional backing. The outflows of stablecoins from other DeFi focussed blockchains has been notable. This issue reviews the chain’s foundational metrics before spotlighting protocol-specific evolutions as well as offering investors a lens on its current yield opportunities.

Deleveraging dropped high-risk loans below $10B, with $21M in liquidations amid volatility. Plasma mainnet drained $1.5B+ in stables from Ethereum, creating liquidity crunches and rate spikes. Duration risks easing. Featured: Sentora Euler Cluster tracking vault health and whale activity.

This week, we are excited to feature an issue from our partners at the Crypto Treasury Tracker. Their weekly snapshot provides an expert analysis of the evolving world of corporate and institutional digital asset treasuries.

In this week's newsletter we explore the latest ETF flows, the SEC's (lack of) decision on Ethereum staking for ETFs and recent RWA developments

Insurance has long been a cornerstone of global finance, providing individuals and institutions with a safety net against risk. For centuries, traditional insurance has evolved to cover everything from trade voyages to modern financial markets, shaping the way societies manage uncertainty. But in the world of DeFi, this safety net is still largely absent.

In this week's newsletter, we analyze ETH ETF performance and shifting institutional interest, Aave horizon and the Uniswap DAO vote to adopt Wyoming's DUNA framework

High-risk loans rise above $12B with $12.6M in liquidations amid volatility. Uniswap v4 hook exploits expose new smart contract risks, while CAP Protocol’s restaking model brings potential slash exposure. Featured: Ethena Risk Radar tracking USDe stability and liquidity metrics.

Aave’s new Horizon real-world asset (RWA) market is off to a blockbuster start, hitting nearly $50 million in TVL within 24 hours. With over $5 million already borrowed against tokenized U.S. Treasuries and CLOs, the launch underscores the surging momentum in the RWA sector. By offering 24/7 stablecoin liquidity at just 3.24% APY on USDC, Horizon is opening the door for institutional borrowers, as heavyweight TradFi players like VanEck, WisdomTree, and Hamilton Lane begin onboarding.

In 2025, a new breed of public companies has captured the imagination of investors: Digital Asset Treasury Companies (DATCOs or DATs). These entities, often focused on holding cryptocurrencies like Bitcoin as core treasury assets, have raised over $15 billion in capital this year alone, surpassing traditional venture funding in the crypto space.

The U.S. drives crypto growth with clear regulation and laws like the GENIUS and Clarity Acts, easing bank capital rules. As crypto gains recognition—even in mortgages—banks that quickly adapt their infrastructure can gain key advantages in lending and trading.

High-risk loans hit $11B with $4.5M in liquidations amid tight liquidity and negative LRT flows. Duration risk grows as leverage restaking trades face long unstaking queues and stablecoin redemption delays. Featured: Morpho Risk Radar monitoring collateral exposure and market efficiency.

Shiba Inu jumped 60% in July and 14% in early August amid surging Ethereum inflows. Whale netflow hit a 75-day high, while average transaction size soared 740%, signaling strong high-value investor activity despite price consolidation.

A combination of on-chain data and financial data can be extremely beneficial for reading the market. In this article we dive into some crucial indicators to consider and the current situation

Dogecoin may have started as a meme, but its on-chain data tells a serious story. Key blockchain indicators reveal investor moves and market health. Here are 10 on-chain metrics to track DOGE’s true trajectory—beyond the headlines and hype.

The FHFA has ordered Fannie Mae and Freddie Mac to consider certain cryptoassets as reserves for mortgage affordability, allowing buyers to count crypto held on U.S. exchanges without liquidating. This move could expand access to home loans for crypto holders.

On-chain data analysis can be a powerful tool for understanding Ethereum's complex ecosystem. In thi article we break down key indicators to analyze

On-chain crypto analytics, often referred to as blockchain analytics, is the systematic examination of publicly available blockchain data—transactions, wallet behaviors, smart-contract interactions—to uncover market dynamics, investor sentiment, and potential trading opportunities.

The Trump Administration signaled strong support for crypto by passing the GENIUS Act, which regulates stablecoins. The law allows both banks and non-banks to issue fully backed stablecoins, excludes them from being treated as securities, bans interest payments for holding them, and overrides SEC rules like SAB 121 — paving the way for traditional finance to enter digital assets.

The financial markets are on the verge of a transformation that could redefine wealth creation and dismantle long-standing revenue models, particularly for equity prime brokers.

And a $25 million Series A

Engaging with DeFi protocols involves a spectrum of risks, from technical risk in smart contracts to economic challenges like liquidation risk. Nonetheless, the number of economic risks that should be considered is extensive, and many become increasingly important as position sizes increase.

Decentralized Finance (DeFi) has rapidly evolved to offer a variety of yield-generating opportunities that differ substantially from traditional fixed-income instruments, such as government or corporate bonds. While early DeFi protocols focused on variable yields, fueled by high volatility and driven by token rewards or liquidity provision, markets are maturing to offer products that provide more stable yield streams.

Stablecoins have emerged as one of the most widely used elements of the cryptocurrency industry. The niche’s success may earn it the place of “killer app” for broader crypto adoption.

Decentralized Finance (DeFi) is increasingly converging with traditional finance through Real-World Assets (RWAs). RWAs are tokens that represent real-world value — from government bonds and real estate to private credit and invoices — brought onto blockchain networks. This integration is reshaping DeFi, offering more stable yield opportunities and attracting institutional interest.

With thousands of DeFi protocols across L1s and L2s, choosing where to deploy capital is tough. For institutions, it’s not about hype—it’s about sustainability, security, and long-term potential. Here’s what to look for when evaluating if a protocol is ready for serious capital.

A deep dive into how AMMs offer a unique blend of opportunities and challenges for institutional investors.