Quiet Alpha

On-chain quants tracking flows, risk, and yield

Daily edge for DeFi investors. DYOR

[Quiet Alpha @QuietAlphaHQ]

AAVE offering up to 6.50% yields on stablecoins via their new app

Promising balance protection up to $1M via an insurance fund

Insurance fund protects against losses from security breaches or technology failures

This may become the "risk free rate" for DeFi

[Quiet Alpha @QuietAlphaHQ]

Our mission at Quiet Alpha is to create a universal risk score for all of DeFi

Moments like this illustrate the need for a more clear, robust and understandable way to navigate risk in DeFi

TradFi has Moody's, S&P, and Fitch credit ratings

DeFi will have QA Risk Scores

[Quiet Alpha @QuietAlphaHQ]

Risk doesn't matter until it does

@Balancer appears to have been exploited, with the hacked funds now exceeding $115M

Smart contract exploits can be one of the most catastrophic risks that DeFi investors encounter, often resulting in a complete loss of capital

At Quiet Alpha we have developed a risk framework that quantifies risk into a single comparable metric called the QA Risk Score

Our aim is to give DeFi Investors more information to be able to better assess and price risk in their investments

[Quiet Alpha @QuietAlphaHQ]

See our current list of the top 20 DeFi investments on: https://t.co/NEnhz0CRWV

[Quiet Alpha @QuietAlphaHQ]

.@hyperbeat USDT pool is the highest yielding opportunity we have analysed with a 65.9% APY

The pool dynamically predominately allocates across a number of Hyperliquid basis trades, including PUMP & XPL

It also has one of the highest risk profiles, with a QA Risk Score of 89.4 (indicating very high risk)

[Quiet Alpha @QuietAlphaHQ]

Our three main lessons from the biggest crypto liquidation event in history

1/ Leveraged trading is riskier than you think

Most leveraged traders will acknowledge the inherent risks in trading high volatility assets, particularly when trading at aggressive leverage multiples

However, this event exposed just how thin and fragile perps markets can be. In particular, an issue in one trading venue (Binance) can have consequences across the entire market

Leveraged traders during this event with only "modest" leverage (e.g., 2-3x) would have had their entire position wiped in one candle in the majority of alts. Many traders had their entire portfolios wiped

It also acutely affected delta neutral traders, which as part of Auto-Deleveraging also saw some of their positions liquidated. This was exacerbated with funding rates going as low as -400% after

Leveraged traders need to reconsider how they can appropriate position their trades to account for these scenarios, across stop losses, collateral rebalancing and leverage ratios

2/ You cannot ignore oracle design when assessing risk

This event clearly illustrated how essential oracle pricing is for the functioning of markets

In particular, oracles using the market price of stablecoins add another element of risk. In turbulent market conditions, traders may execute large market sell orders of fully collateralized stablecoins. This can cause a temporary depeg, even when the underlying stablecoin is robust

Platforms that use oracles that price stablecoins on NAV offer a lower risk profile here, as temporary dips in the market price will not have any impact

3/ The importance of dry powder

Having a reserve of stablecoins in your portfolio can position yourself to make profits during these events

Savvy traders could have made significant profits from buying the flash crash.

Furthermore, as traders sell other assets to recapitalize their accounts, this presents arbitrage opportunities

For example, we executed a 1000%+ APY opportunity by taking advantage of a depeg in a number of Solana LSTs

These opportunities typically only present themselves during periods of market stress - underlying the importance of having a reserve of capital to take advantage of them

[Quiet Alpha @QuietAlphaHQ]

https://t.co/tMYSLBrCwT

[Quiet Alpha @QuietAlphaHQ]

https://t.co/tMYSLBrCwT

[Quiet Alpha @QuietAlphaHQ]

Wintermute CEO @EvgenyGaevoy on being ADL'd by Binance at a "completely ridiculous price"

https://t.co/yuUjCgSm4K

[Quiet Alpha @QuietAlphaHQ]

https://t.co/tMYSLBrCwT

[Quiet Alpha @QuietAlphaHQ]

.@monad is allocating a portion of their airdrop to DeFi users

Power users across DEXes, Perps and other DeFi platforms are eligible

Exact allocations will be available on the 28th of October

[Quiet Alpha @QuietAlphaHQ]

(Optional) Step 3: Add leverage

Returns can be magnified further by looping, increasing the total amount of JupSOL to arb

This can boost returns to around 2%

You can loop via @jup_lend or Kamino (with Jup Lend recommended for airdrop potential)

Here’s how it works:
- Buy JupSOL
- Deposit it and take minimum leverage against SOL
- Borrow the maximum amount of SOL and repeat

Avoid using the “Multiply” functionality, as it incurs a 0.1% fee.

🔍 Key fixes

[Quiet Alpha @QuietAlphaHQ]

1000% APR arbritage opportunity from depegged LSTs on Solana

With the liquidations of October 10-11th we spotted an opportunity to profit from the depeg of JupSOL

The trade is still profitable now

A guide on how you can copy this trade🧵

[Quiet Alpha @QuietAlphaHQ]

Step 2) Executing the trade

To profit from this mismatch, we can do the following:
1. Buy JupSOL using SOL on @JupiterExchange
2. Unstake JupSOL to receive SOL on @sanctumso using the "Delayed" option. This unstakes at the next epoch, which occurs every 2-3 days

At current prices, this trade yields an 0.00244 SOL (per 1 SOL) or 0.2138% risk-free return

Executing this trade close to the epoch dramatically increases annualised APR

During the October 10-11th liquidations, this trade netted closer to 1%

[Quiet Alpha @QuietAlphaHQ]

Perp funding rates have not normalised

$SOL funding rates on @DriftProtocol is still close to 100%

[Quiet Alpha @QuietAlphaHQ]

Risk doesn't matter until it does

At Quiet Alpha we are building risk frameworks to properly assess and price risk in DeFi

More to come soon

[Quiet Alpha @QuietAlphaHQ]

$MET TGE on the 23rd of October

Polymarket has a 48% chance of the FDV above $2B one day after launch

How much do you think your allocation will be worth?

[Quiet Alpha @QuietAlphaHQ]

Step 6: Repeat steps 3-5 until maximum leverage reached

Keep repeating these steps until you cannot borrow any more USDC

Going to max leverage here increases your yield to 40%+, while minimizing slippage from using Loopscale's auto looping

[Quiet Alpha @QuietAlphaHQ]

🚨New Opportunity:

40%+ yield looping PT-ONyc - 25 Jan 2026 on @ExponentFinance & @loopscale

Currently PT-ONyc - 25 Jan 2026 is yielding 17.78%

This is hold you can loop to increase your returns to 40%+ without losing $$$ on fees

[Quiet Alpha @QuietAlphaHQ]

Step 5: Top up PT-ONyc collateral on Loopscale

With the purchased PT-ONyc from the previous step, deposit this back as collateral on Loopscale