YieldNest Risk Team

YieldNest Risk Team is an independent risk and research group operated by LlamaRisk. Our team of specialists has developed expertise in performing comprehensive risk analysis for DEXs and LST protocols. We specialize in measuring risk for a broad spectrum of crypto assets, including stablecoins, LSTs, and RWAs.

As liquid restaking introduces new levels of complexity, the risk dimension changes accordingly. We're here to research in-depth direct and indirect risks for liquid restaking, help YieldNest mitigate the wide array of threats, and contribute to a smart curation of YieldNest-endorsed AVSs. As the deployment of Actively Validated Services (AVSs) on EigenLayer increases, new proofs of concept emerge across multiple categories, including sidechains, data availability layers, new virtual machines, keeper networks, oracle networks, bridges, threshold cryptography schemes, and trusted execution environments. Our evaluation techniques address the inherent risks associated with these categories, focusing on both technological and operational dimensions. We assess smart contract risks, potential for slashing due to code errors, risks of de-pegging, rehypothecation, and the failure probabilities of validators that could critically impact the network's pooled security. Additionally, we explore risks associated with validator collusion, centralization tendencies in yield decisions, and counterparty risks, including solvency and legal structures. This comprehensive assessment is crucial for understanding the various dimensions of risk as new AVSs are integrated into existing protocols, aiming to enhance systemic resilience and secure optimal yield strategies. Twitter: https://twitter.com/YieldNestRisk HackMD: https://hackmd.io/@YieldNestRisk

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