defirisk.co
rubric v1.7.0

TVL concentration (top-10 wallet share)

A economic risk factor in the v1.7.0 rubric. Measured per protocol on a c cadence.

Methodology how we score #

**What this measures** This factor calculates the percentage of protocol TVL held in the top ten depositor addresses, sourced from on-chain scanning. A high concentration ratio means a small number of wallets control the majority of the protocol's deposit base, creating correlated withdrawal risk. The metric is updated continuously and displayed as a concentration percentage alongside the top-ten wallet count.

**Why it matters** High TVL concentration creates two distinct risks. First, the coordinated exit of even two or three top depositors can cause a TVL collapse that triggers oracle-based liquidation cascades or drops the protocol below the threshold where insurance coverage is economically rational. Second, in a lending protocol, a highly concentrated deposit base allows a single large depositor to also become the dominant borrower, creating circular collateral relationships that amplify liquidation risk. The dataset includes several cases where post-exploit TVL recovery was complicated by the exit of a few large holders who accounted for the majority of the residual deposit base.

**Green / Yellow / Red** Green: top-ten wallet share below thirty percent, indicating broad distribution and low correlated-exit risk. Yellow: top-ten wallet share between thirty and sixty percent, indicating meaningful concentration that warrants monitoring of the largest depositor addresses. Red: top-ten wallet share above sixty percent, or a single wallet accounting for more than twenty-five percent of TVL, indicating that the departure of one address would constitute a material liquidity event.

**Common gray cases** Protocols where the largest depositor is a verified protocol-owned treasury account (not a user) may present differently; curator must distinguish user TVL concentration from protocol-owned reserves when calculating the ratio.

**Notable historical examples** No cross-hacked incidents currently linked in database for this factor.

Measurement what to look for #

Compute the percentage of protocol TVL held in the top-10 depositor addresses.

Data & output #

Data source
On-chain deposit event logs + balance reads via subgraph (The Graph protocol adapter or Dune Analytics query)
Output format
Green / Yellow / Red
Evidence artifact
Holder share snapshot JSON + top-10 address list + share % + block number
Confidence signal
green = top-10 hold <30% of TVL; yellow = 30–60%; red = >60% (single exit risk); gray = deposit structure not enumerable from on-chain events

Scored protocols 80 carry this factor #

Protocol RD-F-064
Aave v3 ethereum yellow Across Protocol ethereum gray Aerodrome Finance base yellow Axelar Network ethereum yellow Babylon Protocol bitcoin yellow Balancer (v2 + v3) ethereum yellow Beefy Finance ethereum gray BENQI avalanche not_assessed BlackRock USD Institutional Digital Liquidity Fund (BUIDL) ethereum yellow Cap (cUSD / stcUSD) ethereum yellow Centrifuge ethereum yellow Chainlink CCIP ethereum yellow Circle USYC binance yellow Compound V3 (Comet) ethereum gray Concrete ethereum yellow Convex Finance ethereum gray crvUSD (Curve Stablecoin) ethereum gray Curve Finance ethereum yellow deBridge ethereum gray Dolomite ethereum yellow dYdX v4 (dYdX Chain) dydx gray EigenLayer ethereum yellow Ethena ethereum yellow ether.fi ethereum yellow Euler V2 ethereum gray Falcon Finance ethereum gray Fluid ethereum gray Frax Finance ethereum gray GMX v2 (GMX Synthetics) arbitrum gray Hyperlane ethereum yellow Hyperliquid arbitrum gray Jito solana gray Jupiter solana yellow Jupiter Perpetual Exchange solana yellow JustLend DAO tron gray Kamino Lend solana yellow Kinetiq hyperliquid gray Lido ethereum yellow Liquid Collective (LsETH) ethereum yellow Liquity V1 + V2 (LUSD / BOLD) ethereum yellow Lista DAO bsc gray Lombard Finance ethereum yellow M^0 ethereum yellow Maple Finance ethereum gray Marinade Finance solana yellow Meteora solana gray mETH Protocol ethereum yellow Midas ethereum gray Morpho V1 (Morpho Blue + MetaMorpho) ethereum yellow Multipli ethereum gray Ondo Finance ethereum gray OpenEden ethereum yellow Orca solana gray PancakeSwap bsc yellow Pendle Finance ethereum yellow Polymarket polygon yellow QuickSwap polygon red Raydium solana gray Rocket Pool ethereum green Sanctum solana gray Save (formerly Solend) solana yellow Sky Lending (formerly MakerDAO) ethereum gray Spark Protocol ethereum gray Spiko stellar yellow Stake DAO ethereum gray StakeWise v3 ethereum gray Stargate Finance ethereum gray stHYPE (Valantis Labs) hyperliquid gray SUNSwap (sun.io) tron gray Superstate ethereum yellow Sushi (SushiSwap) — v2 + v3 + Trident + BentoBox/Kashi + SushiXSwap ethereum gray Symbiotic ethereum yellow Synapse Protocol ethereum yellow Uniswap (v2 + v3) ethereum yellow USDD (Decentralized USD) tron gray Usual (USD0 / bUSD0 / USUAL) ethereum yellow Veda (BoringVault) ethereum yellow Venus Protocol bsc yellow Wormhole ethereum yellow Yearn Finance ethereum yellow

Linked hacks no historical incidents linked #

No historical incidents are linked to this factor.
rubric_version v1.7.0 factor RD-F-064 category 4 carried 80 critical no