Blockworks Advisory

Blockworks Advisory leverages the curated and tested expertise developed at Blockworks Research to accelerate our protocol clients' path to success.

[Darren @0xMims]

As Blockworks Advisory winds down its Arbitrum delegate work, I’m opening up a personal delegate profile.

I’ve been managing the BWA delegation since August 2024, so continuing to contribute independently feels like a natural next step.

If there are any BWA delegators looking for continuity, I’d be grateful for your consideration.

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[Blockworks Advisory @BlockworksAdv]

After internal reflection, Blockworks has made the difficult decision to begin winding down our active delegate role within the Arbitrum DAO. This was not easy: Arbitrum is one of the most important ecosystems in crypto, and participating in its governance has been both a responsibility and a privilege.

From the beginning of the DAO we did take our role with the utmost responsibility, since the very first discussions around AIP-1 in which we were questioning treasury transparency and the need for participants to have sufficient information with the goal of representing token holders. Our approach has been rewarded in this sense, and today we are the second biggest delegate in Arbitrum.

Beyond voting, we contributed substantive research through the ARDC: incentive program design, STIP and LTIPP performance, sequencer revenue analysis, Timeboost, and DAO accountability. Some findings had direct impact, with our STIP-Bridge analysis identifying fund misuse and saving the DAO 1.7M ARB in total. Others, such as our sequencer revenue work, helped estimate the main revenue driver during the STIP incentive period, showing how the program spent materially more than it directly recouped, while introducing benchmarks and measures that, at the time, were quite innovative in the crypto analytical landscape.

We generally tried to balance support for growth with analytical restraint, pushing back when proposals lacked detail, incentive designs seemed unsustainable, or treasury initiatives introduced unjustified risk.

Stepping back from active delegation is, for Blockworks, a way to align with the current business goals of our organization, and should not be read as a lack of appreciation for Arbitrum nor a bet against the Arbitrum DAO itself. We believe this ecosystem, the DAO, and all contributors have a bright future and will remain at the forefront of the crypto industry going forward, as they have been in the past.

We encourage current delegators to redelegate to active contributors with the bandwidth and context to participate consistently. We remain grateful for the trust placed in us, and we look forward to collaborating with the Arbitrum Foundation, Offchain Labs, and the other Arbitrum Aligned Entities in the future.

[Blockworks Advisory @BlockworksAdv]

Spark is updating the scope of the Arkis partnership with a recent proposal.

The goal is to capture funding rates yield when leverage will come back in the market.

Let's unpack its significance and risks management.

Arkis provides borrowers with a single margin account that can be used to interact with multiple venues in DeFi and Tradfi.

Via the Arkis integration, @sparkdotfi can lend liquidity to delta neutral borrowers and carry traders, therefore getting exposure to funding rates without needing active management and a trading team.

While the Arkis integration has launched in q1 2026, it is about to scale meaningfully in the next months. A recent proposal expands the asset universe, including commodities (oil) metals (gold, silvers) and venue like Aster and Lighter.

The risk parameters are still tight, with $0.5 of required risk capital for every dollar allocated into Arkis, with a $5m max daily inflow. As more track record is built, this constraint will be relaxed. Current exposure is around $17m.

Spark has already exposure to onchain lending (via Sparklend), stablecoin liquidity (via pyUSD), institutional lending (via Anchorage). The addition of Arkis makes it even more diversified, allowing the Spark Liquidity Layer (picture) to select a better risk return in different market environments.

read the full risk council assessment:
https://t.co/KYRM9sLRg9

[Blockworks Advisory @BlockworksAdv]

8/ Ethena team confirmed direct onboarding with Ripple Prime to mint and redeem. In a stress scenario, Ethena redeems with Ripple directly with $1.17B in near liquid reserves which provides 3.9× coverage of the $300M cap.

Read the full analysis here
https://t.co/PuPLjKbQtY

[Blockworks Advisory @BlockworksAdv]

1/ @ethena is expanding USDe backing assets with RLUSD. As members of the Ethena Risk Committee, we ran the full eligibility analysis.

Here's what the data says. 🧵

[Blockworks Advisory @BlockworksAdv]

7/ DEX liquidity represents the tail risk. Curve Finance dominates at 97.6% of combined TVL. TVL grew rapidly then plateaued around $40M from October 2025 which is a structural ceiling that directly caps stress exit capacity via DEX alone.

[Blockworks Advisory @BlockworksAdv]

The goal is twofold:
- Build the strongest public risk frameworks for Solana stablecoin yield.
- Educate the market through ongoing monthly research and reporting.

Together, this helps Reflect strengthen its product, improve transparency, and position for its next phase of growth.

[Blockworks Advisory @BlockworksAdv]

We’re excited to start working with Reflect to bring yield-bearing stablecoin infrastructure to market.

Reflect is the agnostic infrastructure layer for stablecoins on Solana.

We are building the risk engine behind it 🧵

[Blockworks Advisory @BlockworksAdv]

Our first focus is building a public risk framework for Solana yield markets, designed to support stronger risk-adjusted returns through USDT+ and USDC+.

In light of recent exploits, we’re re-evaluating Solana’s most liquid lending venues and assessing market, asset, and protocol risks across each.

[Blockworks Advisory @BlockworksAdv]

@hexonaut 🔥

[Blockworks @Blockworks]

https://t.co/r4jSSxBeto

[Blockworks Advisory @BlockworksAdv]

@capitalmarkets @kamino 🔥

[Blockworks Advisory @BlockworksAdv]

@cheryldchan @Figure 🔥

[Blockworks Advisory @BlockworksAdv]

@grahamfergs @kamino 🤝

[Blockworks Advisory @BlockworksAdv]

@kamino 🔥