DeFi Protocol Research Prompt
Decomposes a protocol's yield source, contract risk, oracle dependency and exit path into a written risk verdict.
/ quick answer
Use before depositing into any DeFi protocol. Paste the facts you gathered from docs and explorers. Decomposes a protocol's yield source, contract risk, oracle dependency and exit path into a written risk verdict.
Assess this DeFi protocol for a depositor. Separate mechanism from marketing. PROTOCOL: [NAME] CHAIN: [CHAIN] CONTRACT: [ADDRESS] Advertised APY: [VALUE] TVL + history: [DATA] Audits + deployment date: [DATA] Upgradeability + admin keys + timelock: [DATA] Oracle: [DATA] Yield mechanics from docs: [SUMMARY] Deliver: 1. Yield decomposition: % from fees, borrowing demand, staking, and token emissions. 2. Sustainability: what happens to the yield when emissions taper. 3. Contract risk: upgradeability, admin authority, audit scope and known gaps. 4. Oracle and liquidation risk, if applicable. 5. Exit path: how quickly and at what cost capital can leave under stress. 6. The three most likely ways a depositor loses money here. 7. A maximum allocation a risk-aware depositor could justify, with reasoning. Do not present APY as expected return. Flag every unverified claim.
Decomposition: 22% fee-based, 78% emissions — the headline 31% APY is largely a token subsidy. Post-taper realistic yield: ~7%. Contract risk: upgradeable proxy, admin multisig 2/3 with no timelock — a governance capture is a total-loss path. Oracle: single-source feed on a thin pair. Exit: withdrawals queue during stress; last drawdown took 14 hours. Loss paths: emissions collapse, oracle manipulation, admin action. Max justified allocation: 2%.
/ frequently asked
What does the DeFi Protocol Research Prompt prompt do?
Use before depositing into any DeFi protocol. Paste the facts you gathered from docs and explorers.
Which AI models work with this prompt?
It is model-agnostic: it works with any capable general model. Replace the bracketed variables with your own context before running it.
How do I use this prompt?
1) Copy the prompt with the copy button. 2) Replace every bracketed variable with your real details. 3) Paste it into your AI assistant. 4) Compare the answer with the example output and ask for changes if needed.
What output should I expect?
Decomposition: 22% fee-based, 78% emissions — the headline 31% APY is largely a token subsidy. Post-taper realistic yield: ~7%. Contract risk: upgradeable proxy, admin multisig 2/3 with no timelock — a governance capture is a total-loss path. Oracle: single-source feed on a thin pair. Exit: withdraw.
/ continue exploring
Related concepts
The vocabulary this page depends on.
- →MCP (Model Context Protocol)
Open protocol that lets LLMs connect to tools, data sources and apps through a standard interface.
- →Prompt Injection
An attack where hostile input hijacks the LLM's instructions, causing it to leak data or misbehave.
- →MCP (Model Context Protocol)
Open standard letting AI clients call external tools, data and prompts.
- →Deep Research (AI)
Long-running AI research task that produces a cited multi-page report.
Related workflows
Turn this into a repeatable process.
- →DeFi Yield Research Workflow
Evaluate a yield opportunity by decomposing where the return comes from and what has to break for it to disappear.
- →Monitor Liquidity
Watch the pools you depend on for exit liquidity, so a position becomes unexitable only in theory, not by surprise.
- →Personal Research Assistant Workflow
A repeatable system to research any topic deeply in under 30 minutes.
- →AI Market Research Report in One Afternoon
From blank page to sourced, structured 20-page market report in ~4 hours.
Related tool stacks
The tools that run it in production.
- →DeFi Execution Stack
Web3 wallet, DEX aggregator, DeFi protocols and a portfolio tracker — the toolset for actually deploying capital on-chain.
- →On-chain Research Stack
Explorer, indexer and analytics layers combined so wallet and token questions get answered with verifiable data.
- →AI Research & Knowledge Stack
Default toolset for analysts, founders and creators doing deep research with AI.
Related prompts
Reusable prompts for this job.
- →Yield Comparison Prompt
Compares yield opportunities on a risk-adjusted basis instead of ranking them by advertised APY.
- →Deep Research Prompt Template
Reusable Deep Research prompt that produces cited, structured reports every time.
- →Sourced Research Brief Prompt
Produces a structured brief where every claim carries a citation.
- →Crypto Risk Analysis Prompt
Runs a pre-mortem on a position or protocol: enumerates failure modes, likelihood, impact and observable early warnings.
Related use cases
How people apply it, and what came out.
- →Discover DeFi Opportunities
Ranking yields by real fee-based return instead of advertised APY moved capital from a 31% headline position to an 8.4% sustainable one.
- →Monitor Liquidity
Depth monitoring across 9 positions flagged three tokens as effectively unexitable at their current size, forcing a resize before it mattered.
- →Tech Creator Replaces a Research Assistant With a Workflow
A YouTuber cut their research time per video from 8 hours to 90 minutes.
Comparisons & alternatives
Pick between the options.
- →DeFi vs Traditional Finance
DeFi offers open access, composability and transparent rules; traditional finance offers legal recourse, insurance and stability.
- →AI Research vs Traditional Research
AI research compresses breadth and drafting; traditional research supplies verification and accountability for the claims you act on.