Reading concentration across lending markets
How we mark correlated borrow markets when a wallet looks diversified but shares the same collateral story.
When a holder shows three lending positions on two chains, the spreadsheet often looks tidy. The allocation review still asks whether those markets lean on the same collateral asset and the same liquidation grammar.
What we mark first
We list the underlying collateral families, not just the protocol logos. Two “different” markets that both lean hard on the same blue-chip collateral are treated as cousins. The memo then asks how much of liquid net worth sits inside that cousin set.
Why percentage alone misleads
A twenty-percent slice in an isolated vault is not the same as twenty percent spread across three markets that unwind together. During stress, claimable yield does not offset the fact that exits queue at the same moment.
What we leave to the holder
We do not dictate a target weight. We show where concentration hides behind protocol branding so the holder can decide whether to stage a reduction around claim windows or accept the cluster knowingly.
If you want this kind of reading on your own wallets, start with a Wallet Allocation Review.