Diffuse Protocol

Non-custodial prime broker that enables hedge funds to amplify yields by up to 3× through overcollateralized loans funded by Diffuse Prime LP

[Diffuse Protocol @DiffuseFi]

For the paper lovers, here's a gem for you to dive into 📄✨

https://t.co/tsYjUWq0iQ

[Diffuse Protocol @DiffuseFi]

1) Diffuse Prime Architecture - inside the machine 🏗

How do you build a non-custodial prime brokerage layer that supports leverage, protects LPs, and stays verifiable?

Here’s the architecture behind it 👇

[Diffuse Protocol @DiffuseFi]

The Core #DeFi Problem Diffuse solving NOW!

[LayerZero @LayerZero_Core]

https://t.co/3vIHs3Xgs4

[Aave @aave]

Update on rsETH incident:

According to our analysis, rsETH on Ethereum mainnet is fully backed.

Out of an abundance of caution, rsETH remains frozen across Aave V3 and V4 and exposure to the incident is capped.

WETH reserves also remain frozen across affected markets including Ethereum, Arbitrum, Base, Mantle, and Linea.

Aave is actively validating information and assessing potential resolutions.

[Lido @LidoFinance]

1/ On April 18, an attacker drained 116,500 rsETH (~$292M) from Kelp's cross-chain bridge. rsETH markets on Aave and other lending venues were frozen shortly thereafter.

[Diffuse Protocol @DiffuseFi]

Diffuse is looking for

a general partner to build essential institutional infrastructure today.

DM us. Let's talk. https://t.co/LKsWvx9kWy | #DeFi #Institutions

[Diffuse Protocol @DiffuseFi]

The Kelp DAO situation highlights a critical design challenge in institutional DeFi:

complex cross-protocol assets back $280M in loans, how much data visibility is enough?

It's a question all of us building in this space need to answer.

[Diffuse Protocol @DiffuseFi]

Why This Matters

The Kelp situation wasn't a black swan - it's a signal about infrastructure maturity.

Hedge funds and institutions need lending protocols built on cryptographic transparency, not trust in data aggregators.

The market is ready. The technology exists.

[Diffuse Protocol @DiffuseFi]

We've got 30k in prizes during @Cointelegraph pitch session!

[Maxim Moris @MaximMoris]

Today at the @Cointelegraph event, a pitching activity took place.

One of the participants was @DiffuseFi, which we invested in. They won several $ prizes, and I'm glad to see their success.

🥂 Congrats to the team and special thanks to Cointelegraph.

[Diffuse Protocol @DiffuseFi]

Final/ Why this fits Diffuse Prime framework:
Multiple underlying yield sources

- Single interface (PT)
- Fixed yield via discount
- Structured redemption agreements
- Continuous monitoring of peg + liquidity

[Diffuse Protocol @DiffuseFi]

1/ How Diffuse Prime extracts fixed yield from @aegis_im via @pendle_fi

Today – deep dive: Aegis $YUSD → PT-sYUSD strategy

Let’s start from the base layer: What is Aegis?

[Diffuse Protocol @DiffuseFi]

10/ Unwinding the Position

PT-sYUSD
→ swap to SY
→ redeem to $sYUSD
→ unstake to $YUSD
→ redeem to $USDC / $USDT

Every step is predefined and modeled.