DeFiBearishCrypto Briefing · May 37/10
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Tom Dunleavy: Proper risk assessment in DeFi requires disaggregating risk premia, inflated yields mislead investors, and curators play a key role in managing collateral markets | Unchained
Tom Dunleavy argues that DeFi lending platforms systematically misprice risk by failing to disaggregate different risk components, resulting in inflated yields that mislead investors about true risk-adjusted returns. He contends that proper risk assessment should yield approximately 12.5% rather than current market rates, and emphasizes that curators play a critical role in managing collateral quality amid a backdrop of $606 million in protocol exploits.
