Three Lines of Defence - yields.digital - LYRA Risk Framework
Your 2nd Line of Defence
Risk Manager
"I think we were within mandate" is not oversight. Real oversight means being able to prove it - to your board, your auditor, regulator, and clients, at any point in time, without violating rules and looking unprofessional.
What is yields.digital?
yields.digital's LYRA (Layered Yields & Risks Assessment) gives risk managers on-demand risk assessment of digital asset positions - with a timestamped evidence trail that accumulates with each assessment and is exportable on demand (takes seconds). Scheduled portfolio snapshots keep that record building whether or not anyone runs a check; threshold alerting is planned.
LYRA was designed and is constantly being improved by a team of very senior ex-financial services professionals, which includes a CFA with over 8 years of institutional quantitative portfolio management.
The Challenge Without LYRA
Manual and intermittent checking of risk parameters, referring to written policy documents, creating a lag to market movements (undetected exposure delays) and additional required trust on the portfolio management team.
What LYRA Gives You
Risk scores per dimension across assets, protocols, pools and chains, on pool data refreshed every 2 hours, filtered against your chosen risk tolerance. Planned: configurable breach alerts with notifications when a threshold is approached or exceeded.
The Challenge Without LYRA
You rely on the PM to self-report. Your oversight is theoretical, not operational. That does not satisfy a board risk committee, an internal auditor, or a regulatory examination.
What LYRA Gives You
Timestamped risk scores, plus scheduled portfolio snapshots (daily, monthly or quarterly) that store the source data with each score. The record builds whether or not you requested it.
The Challenge Without LYRA
Manual assembly from multiple data sources under time pressure, with inevitable gaps wherever monitoring was not continuous. Auditors always find the gaps.
What LYRA Gives You
Exportable structured reports built from stored snapshots. No manual assembly, and no reconstruction under examination pressure.
The Challenge Without LYRA
Different protocols demand different analytical frameworks. Cross-portfolio comparisons are inconsistent, difficult to defend to a board, and impossible to automate at scale.
What LYRA Gives You
The identical four position-level dimension (Asset, Pool, Protocol, Chain) methodology applied uniformly to every protocol, plus a portfolio risk score that aggregates Asset and Protocol risk by position value. Where nuances between certain assets or protocols appear, we work in a structured quantitative approach to normalise and ensure clients receive consistent data. Fully comparable, fully auditable.
The Challenge Without LYRA
One analyst cannot monitor ten or more protocols continuously without missing events. Human monitoring does not scale as the investment universe grows - and the gaps are where risk lives.
What LYRA Gives You
Scheduled portfolio snapshots record positions and scores without anyone running a check; alerts, so you receive signals rather than raw data, are planned. Your time is directed at analysis, decision, and escalation - not data collection.
The Challenge Without LYRA
Custom model build required for each scenario. Time-consuming to construct, inconsistently applied across protocols, and difficult to repeat as conditions change.
What LYRA Gives You
Configurable stress scenarios applied uniformly across the monitored portfolio, with structured and comparable outputs for board risk committee presentation.
What structured evidence looks like in practice:
Protocol: Aave v3 (Ethereum) | Asset Risk: 1.8/5 | Pool Risk: 2.1/5 | Protocol Risk: 1.6/5 | Chain Risk: 1.4/5 (lower is safer)
Selected risk tolerance: maximum risk score 2.5 | Combined score: 1.8 | Status: WITHIN TOLERANCE
Timestamp: 2026-04-06T14:23:11Z
Output: Structured JSON via API | Exportable HTML, CSV, XLSX evidence