After $606 million in DeFi exploits in a single month, how should lenders actually be pricing the risk they’re taking?

Tom Dunleavy of Varys Capital and Adrian Cachinero Vasiljevic of Steakhouse Financial walk through the risk premiums that most DeFi depositors never see in the yield they accept: code exploits, oracle manipulation, governance and social-layer failures, exotic rehypothecation risk, and the model uncertainty that blew up Long-Term Capital Management.

Tom’s bottom line: a fair blended DeFi yield is around 12.5%. Adrian’s response: the answer depends entirely on which primitive, which collateral, and which model you’re applying.

Guests: Tom Dunleavy, Head of Venture at Varys Capital; Adrian Cachinero Vasiljevic, Co-Founder at Steakhouse Financial.

Host: Laura Shin

This clip is from a longer conversation on whether DeFi lending yields adequately compensate depositors for tail risk. Full episode here: https://youtube.com/live/VOR1TNyh_vQ

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