Defi Tvl Protocol Concentration
In plain terms
When DeFi capital concentrates into a few protocols (rising HHI), the system is fragile and crypto-stocks underperform.
How it works
Herfindahl across DeFi protocols (eth-chain, Aave, Uniswap) captures capital concentration risk. Spikes precede systemic fragility — Adrian-Brunnermeier 2016 channel — and crypto-proxy equities tend to drift down 10-20d after a concentration shock.
Data dependencies
- Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
- Defi tvl
A data feed this strategy reads, refreshed on its normal schedule.
Expected edge
- Reported return
- 50-200 bps
- Tested over
- T+0 to T+20d
50-200 bps over 10-20d.
Example tickers where this is likely to fire
Illustrative only, the signal fires based on the live data, not a fixed list.
Related families
Dollars staked in DeFi surge → Coinbase/Robinhood/BlackRock rally within 2 weeks.
When dollars locked in DeFi surge over 60 days, MicroStrategy/Coinbase/miners catch a bid within two weeks.
Long crypto-proxies only when DeFi adoption is rising AND capital is broadly distributed (not concentrating into a single protocol).
Explore Defi Tvl Protocol Concentration on alphactor.ai
See which tickers this family is currently firing on, with live signals and rankings.