RFS DeFi Risk Intelligence Weekly

Institutional-Grade DeFi Risk Monitoring brought to you by RFS Consulting

AuthorAuthor

Camryn Odom & Robert Franklin III
August 07, 2025 • Estimated Reading Time: 10 minutes

Welcome to another edition of RFS DeFi Risk Intelligence Weekly!

— Powered by RFS Consulting | www.rfsconsultingglobal.com

Here’s whats new this week:

🧠 Top Insight: AI x DeFi Risk Intelligence Moves Center Stage

AI-powered DeFi risk is no longer a future concept—it has become both a compliance requirement and a capital efficiency mandate.

This week, Gemach DAO  gained significant institutional attention 

 Discussions highlighted strong demand for:

  • Real-time, explainable AI risk scores for tokenized assets

  • Continuous stablecoin depeg monitoring

  • Integration into institutional dashboards for risk oversight

Key Takeaway: The next phase of DeFi growth will require AI-driven risk intelligence to satisfy both regulators and institutional treasuries.

📊 Emerging Market Spotlight: Sereel in Africa

 Sereel is pioneering institutional DeFi adoption across African capital markets. Its protocol is designed to give pension funds and asset managers access to structured yield and tokenized assets that were previously out of reach due to shallow local markets.

Key Innovations:

  • Liquidity optimization for emerging markets via tokenized T-bill and FX products

  • AML/CFT-compliant settlement for cross-border institutional flows

  • Bridging local institutions to DeFi through risk-scored, transparent transactions

RFS is monitoring Sereel’s growth closely as a model for regulated DeFi infrastructure in frontier economies.

💳 OneRamp Purchase Highlight

OneRamp, a key on/off-ramp for digital asset flows, reported a 20% spike in institutional purchases this week following increased activity in stablecoin treasury hedging.

Drivers:

  • Rising interest in USDC-based treasury hedges

  • BTC and ETH accumulation for long-term collateral

Implications for DeFi Risk:

  • Increased institutional flows through regulated ramps strengthen auditability and compliance

  • Reinforces the need for stablecoin depeg and cross-chain risk monitoring

📉 RFS Risk Scores - Week of August 4th, 2025

Protocol

RFS Score (1 - 100)

Risk Trend

Commentary

MakerDAO

86

Stable

DAI peg stability supported by RWA revenue buffers

Frax Finance

76

Improving

Frax v4 improves modularity and on-chain liquidity metrics

Pendle

65

Caution

Yield APY spikes post-ETH ETF approval; dilution risk flagged

Curve

62

Volatile

TVL dips after hack recovery; shallow peg depth persists

Particula

74 (Prelim)

Neutral

Token monitoring live; RFS integration under review

Mantle

70 (Prelim)

Developing

L2 ecosystem growing steadily; monitor liquidity concentration risks

New Watchlist Additions: Particula, Mellow Protocol, Mantle

🛰️ Protocol Heat Map (Excerpts)

Green Zones (Lower Risk) 🟩

EigenLayer-enabled LST pools with validator diversity

DAI yield vaults with automated redemption layers

Mantle Layer‑2 dApps with audited liquidity protocols

Red Zones (High Risk) 🟥

Curve pools with unbalanced ETH/FRAXBP ratios

Unverified stablecoins in low-volume AMM pools

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🌐 Mantle Ecosystem Overview

Mantle is an Ethereum Layer‑2 network designed for capital‑efficient DeFi, leveraging a modular architecture to improve scalability and lower transaction costs.

Highlights:

  • Modular Execution Stack: Separates execution, settlement, and data availability for efficiency.

  • dApp Ecosystem: Over 240 active projects; 89 are DeFi-focused with liquidity and yield strategies.

  • Institutional Relevance: Supports on‑chain yield strategies, stablecoin deployment, and audited liquidity provisioning.

RFS Risk Lens:

  • Score: 70 (Prelim) – Developing

  • Opportunities: L2 scaling, modular efficiency, expanding liquidity pools

  • Risks: Liquidity concentration, cross‑layer operational dependencies, and evolving governance

Explore Mantle dApps Below:

Mantle Network | Building the Liquidity Chain of the Future:

Mantle Network aims to be the "Liquidity Chain" to drive capital efficiency in the on-chain economy through modular architecture, data availability solutions, and zero-knowledge proofs.

💡 DeFi Deep Dive: Ghost Chains & Liquidity Decay

“Ghost chains” — blockchains with low liquidity, developer activity, and adoption — pose hidden risks to dApps deployed on them.

❝

Example:
If StarkNet struggles to maintain TVL, even well‑designed apps could become marooned, leaving treasuries illiquid.

Actionable Insight:
Incorporate chain migration readiness into your treasury risk framework to mitigate stranded asset exposure.

🧭 Policy & Regulatory Radar

SEC Token Compliance Memo (via Confusion Capital)

  • RFS will publish an institutional analysis this week on decentralized compliance for tokenized securities.

By Pyments.com

DC Fintech Week (October 14 - 17) – Call for Papers

  • RFS to submit “Benchmarking Risk in DeFi Treasury Protocols.

HOME - DC Fintech Week

DC Fintech Week 2024 - Mark Your Calendars For The Most Influential Fintech Forum Of The Year!

🙇🏾‍♀️ Camryn’s Corner

Welcome to another segment of ‘Camryn’s Corner’ brought to you by your co-author and editor! Each week I will highlight my top 5 DeFi Applications, Protocols, or other news worthy subjects in the crypto and DeFi world. This week I will be highlighting the top stablecoins dominating in today’s crypto space.

Stablecoins continue to be a cornerstone of the crypto ecosystem in August 2025, with three key players dominating the conversation:

Tether (USDT) remains the largest by market capitalization and daily volume, serving as the de facto stablecoin for trading and settlements, despite ongoing scrutiny over its reserves. Tether's dominance is driven by its sheer scale and liquidity. Its unparalleled market depth allows for seamless and rapid transactions, solidifying its role as the primary settlement asset across the crypto and DeFi landscape.

USD Coin (USDC), the second-largest, has been a central focus of institutional adoption, with a major US fintech company recently announcing a partnership with Circle, the issuer of USDC, to enable financial institutions to transact in the stablecoin. This comes after Circle went public on the New York Stock Exchange in June 2025, further solidifying its presence in traditional finance.

By Bloomberg.com

Dai (DAI), is a decentralized and over-collateralized stablecoin governed by the MakerDAO community. It has established itself as the stablecoin of choice for decentralized finance (DeFi) due to its unique collateralization model, making it a truly decentralized and censorship-resistant asset. Boasting the second-largest daily trading volume despite a smaller market cap, its stability is maintained by a basket of over-collateralized crypto assets, positioning it as a key pillar for those who prioritize the core tenets of blockchain technology.

🧵 Quick Threads & Readings

@km_crypto1 on X (Formerly Twitter): Curve stablecoin pools and risk‑adjusted LPing

The Big Whale: StarkNet under pressure—is it a ghost chain?

What is Starknet?

Starknet (STRK) is a permissionless, decentralized layer-2 scaling solution for the Ethereum blockchain. It uses zero-knowledge rollup technology, specifically STARK proofs, to validate transactions off-chain and submit them to the Ethereum mainnet, increasing scalability and reducing fees. The STRK token facilitates transactions, governance, and staking on the network.

Mantle Spotlight: – L2 ecosystem growth and audited DeFi opportunities

Mantle Network | Building the Liquidity Chain of the Future

Mantle Network aims to be the "Liquidity Chain" to drive capital efficiency in the on-chain economy through modular architecture, data availability solutions, and zero-knowledge proofs.

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📢 Call to Action

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Till next time,

RFS DeFi Risk Intelligence Weekly

🔓Disclaimer: This content is for informational and educational purposes only. It does not constitute investment advice or a solicitation to buy or sell securities or digital assets.