Three Lines of Defence - yields.digital - LYRA Risk Framework - Q2 2026
Your 1st Line of Defence
Portfolio Manager
Because great investment decisions in digital assets should not require a PhD in blockchain engineering. They should require great risk data - in the language you already speak.
What is yields.digital?
yields.digital builds LYRA (Layered Yields & Risks Assessment) - institutional-grade risk intelligence for digital asset markets. LYRA translates DeFi-native risk into the four-dimension framework you can map to your existing vocabulary: Asset Risk, Pool Risk, Protocol Risk, and Chain Risk, assessed across four layers of the protocol stack. It is live, API-accessible, and built to give you the decision confidence in DeFi that your investment committee, risk function, and clients demand.
LYRA is designed and built by a CFA and former portfolio manager, along with other ex-financial services leaders, and constantly expanded and improved based on ecosystem changes and user feedback.
The Challenge Without LYRA
Up to several days of manual research per asset and protocol. No standardised framework, no comparable methodology across opportunities. Every evaluation starts from scratch with no guarantee of consistency.
What LYRA Gives You
Composite four-dimension risk scores for every protocol in our universe - screened, ranked, and directly comparable via API, generated in seconds. Every opportunity is assessed on a risk-adjusted basis. The identical framework applied every time.
The Challenge Without LYRA
No automated boundary monitoring. You rely on memory, spreadsheets, and manual checks that cannot scale across multiple simultaneous positions or respond in real time.
What LYRA Gives You
Risk scoring across all four dimensions per protocol, with system-level thresholds defining risk tolerance bands. Real-time alerting when any position approaches a mandate limit is planned for Q2 2026.
The Challenge Without LYRA
Pool liquidity, TVL depth, and yield volatility at your exact position size are invisible until you try to deploy and find the market cannot absorb the capital without impact.
What LYRA Gives You
Pool TVL, TVL volatility, holder concentration (HHI), and APY volatility metrics calculated at your position size - built into every protocol score before deployment decisions are made.
The Challenge Without LYRA
Narrative, qualitative descriptions of protocols your IC does not understand, with no structured cross-position framework and no language that maps to their existing risk vocabulary.
What LYRA Gives You
Structured four-dimension breakdowns in quantitative terms your IC can evaluate: VaR, CVaR, max drawdown, APY stability. Consistent, comparable, and defensible.
The Challenge Without LYRA
You check when you remember to check. Risk events in DeFi move faster than any manual review schedule. Analyst time spent on data collection is analyst time not spent on analysis.
What LYRA Gives You
On-demand scoring across all positions via API. Score changes between assessments are visible in the audit trail. Automated alerting for threshold approaches planned for Q2 2026.
The Challenge Without LYRA
Each new protocol requires rebuilding the research and scoring framework from scratch. Time cost compounds with every addition to the investment universe.
What LYRA Gives You
Pre-validated protocol universe, continuously expanded. New protocols scored on the identical methodology - immediately comparable to every existing position on day one.
Screen a new DeFi protocol within seconds.
Run a full portfolio risk report in a single API call.