# This Week at Royco #5 - Security as Priority *Security is our paramount priority, and this week made it visible. Audits, an ecosystem subsidy earned, and the work underneath every market.* By [Royco](https://blog.royco.org) · 2026-06-01 royco, defi, tranching, weekly, security, oracles, hexens, certora, yield, farming --- **TL;DR** ========= * Three independent security reviews of Royco Dawn completed with [Hexens](https://x.com/hexens). * Royco accepted into the Ethereum Security Subsidy Program. * New article and podcast with [Redstone](https://x.com/redstone_defi) on fundamental oracles, with [Accountable](https://x.com/AccountableData) on the verification side. * Shiv on [Portals.fi](https://x.com/portals_fi), walking through the full Royco Dawn architecture. * A first hint at Royco Dusk: the next version of the protocol. * * * **Three Reviews with Hexens** ============================= We published a writeup on the three independent security reviews of Royco Dawn completed with Hexens.  No Critical or High findings across any round. Every fix re-validated before finalization. What matters isn't one audit. It's three in sequence, each confirming the previous fixes held. [![User Avatar](https://storage.googleapis.com/papyrus_images/f8bb26fec8b9f4e8e7d0d778b91ad4323d4c1e3754677c48798e2e15bb9080a1.jpg)](https://twitter.com/roycoprotocol) [Royco](https://twitter.com/roycoprotocol) [@roycoprotocol](https://twitter.com/roycoprotocol) [](https://twitter.com/roycoprotocol/status/2059005825692401862) [x.com/i/article/2058…](https://t.co/e7PqsYs6i6) [24](https://twitter.com/roycoprotocol/status/2059005825692401862)[ 8:16 PM • May 25, 2026 ](https://twitter.com/roycoprotocol/status/2059005825692401862) * * * **Accepted into the Ethereum Security Subsidy Program** ======================================================= Royco has been accepted into the Ethereum Security Subsidy Program. A real honor, and a vote of confidence in how we're building. Encouraging to see security getting the backing it needs. [![User Avatar](https://storage.googleapis.com/papyrus_images/9bc3ed93f10583bc06d6618aea74c5e39b4727ab18b01bf53ffd55684d43b1ea.png)](https://twitter.com/0xboo) [Findlay](https://twitter.com/0xboo) [@0xboo](https://twitter.com/0xboo) [](https://twitter.com/0xboo/status/2044069666725753144) 1/ We've teamed up with [](https://twitter.com/ethereumfndn)[@ethereum](https://twitter.com/ethereum)fndn Trillion Dollar Security Initative, @nethermind, and [@chainlinklabs](https://twitter.com/chainlinklabs) to bring $1m in audit subsidies to @ethereum builders! The Ethereum Security Subsidy Program is a joint initiative with top-tier audit providers, anchored by an Expert ![](https://storage.googleapis.com/papyrus_images/f6aeaa52f1992bec0d7e2502e3736ade14a5d2f4967806b88cb72e90e8c23b84.jpg) [262](https://twitter.com/0xboo/status/2044069666725753144)[ 3:06 PM • Apr 14, 2026 ](https://twitter.com/0xboo/status/2044069666725753144) * * * **Pricing Risk with Verified Truth** ------------------------------------ A new piece walking through how Royco prices its [Neutrl](https://x.com/Neutrl) and [Cap](https://x.com/CapApp) markets, using Redstone for on-chain delivery and Accountable for verified solvency. The short version: tranching only makes sense if the protocol prices on what the asset is, not on what the market thinks it's worth right now. [![User Avatar](https://storage.googleapis.com/papyrus_images/f8bb26fec8b9f4e8e7d0d778b91ad4323d4c1e3754677c48798e2e15bb9080a1.jpg)](https://twitter.com/roycoprotocol) [Royco](https://twitter.com/roycoprotocol) [@roycoprotocol](https://twitter.com/roycoprotocol) [](https://twitter.com/roycoprotocol/status/2059720342285980116) [x.com/i/article/2059…](https://t.co/bdF2RL4CBZ) [52](https://twitter.com/roycoprotocol/status/2059720342285980116)[ 7:36 PM • May 27, 2026 ](https://twitter.com/roycoprotocol/status/2059720342285980116) * * * **What Oracles Actually Do** ============================ [Mike Massari](https://x.com/mkmassari) from Redstone got into it with Shiv from Royco engineering. What market and fundamental oracles do. Why Royco prices its tranches on fundamentals. And where the liquidity gap sits for the RWAs coming on-chain. The full episode is up. [![User Avatar](https://storage.googleapis.com/papyrus_images/f8bb26fec8b9f4e8e7d0d778b91ad4323d4c1e3754677c48798e2e15bb9080a1.jpg)](https://twitter.com/roycoprotocol) [Royco](https://twitter.com/roycoprotocol) [@roycoprotocol](https://twitter.com/roycoprotocol) [](https://twitter.com/roycoprotocol/status/2060475267404251252) What's the difference between a market oracle and a fundamental oracle? [@mkmassari](https://twitter.com/mkmassari) from [@redstone\_defi](https://twitter.com/redstone_defi) got into it with [@ShivaanshKapoor](https://twitter.com/ShivaanshKapoor) from Royco engineering, and into why Royco prices its tranches on fundamentals. Watch the full episode ![👇](https://abs-0.twimg.com/emoji/v2/72x72/1f447.png) ![](https://pbs.twimg.com/amplify_video_thumb/2060429207201611780/img/Yhr1VoxQGT8t1-If.jpg) [17](https://twitter.com/roycoprotocol/status/2060475267404251252)[ 9:36 PM • May 29, 2026 ](https://twitter.com/roycoprotocol/status/2060475267404251252) * * * **Dawn, End to End** ==================== Shiv from Royco engineering joined Portals.fi for the clearest walkthrough of Royco Dawn to date. Tranching. The adaptive rate model. The Observation Period. The srRoyUSDC vault. And an early look at what's coming next. [![User Avatar](https://storage.googleapis.com/papyrus_images/82c9ff76b0634c32701002f7025c8b3d891423f2d8ef6fd5fb23bf38162001f3.jpg)](https://twitter.com/portals_fi) [Portals.fi | DeFi Explorer](https://twitter.com/portals_fi) [@portals\_fi](https://twitter.com/portals_fi) [](https://twitter.com/portals_fi/status/2059673747112771921) "Dawn senior tranches are the immaculate collateral. A better version of the underlying asset from a risk point of view." ![🆕](https://abs-0.twimg.com/emoji/v2/72x72/1f195.png) [@roycoprotocol](https://twitter.com/roycoprotocol) DeFi Drop ![🎙️](https://abs-0.twimg.com/emoji/v2/72x72/1f399.png) [@ShivaanshKapoor](https://twitter.com/ShivaanshKapoor), Head of Engineering: ![🌊](https://abs-0.twimg.com/emoji/v2/72x72/1f30a.png) Why they pivoted from incentives to Dawn ![📊](https://abs-0.twimg.com/emoji/v2/72x72/1f4ca.png) TradFi waterfall credit And more... ![](https://pbs.twimg.com/amplify_video_thumb/2059633508210061312/img/QnP8Ys4-S-29LjRa.jpg) [4](https://twitter.com/portals_fi/status/2059673747112771921)[ 4:31 PM • May 27, 2026 ](https://twitter.com/portals_fi/status/2059673747112771921) * * * **A First Look at Dusk** ======================== Royco Dawn solved one part of the problem: tranching transforms the risk profile of any yield source. The next version, Royco Dusk, extends that thinking to liquidity. The Senior tranche becomes a tradeable asset, bringing liquidity to yield sources that have never had it.  The Dusk design was finalized this week in collaboration with [Tomer Ganor](https://x.com/tomer_ganor) from Certora with an emphasis on simplicity and security. More on what Dusk unlocks soon. * * * **What's Next** =============== One thing we want to make absolutely clear: security is our paramount priority. Every piece this week is a reflection of that. What's coming next is close. --- *Originally published on [Royco](https://blog.royco.org/this-week-at-royco-5-security-as-priority)*