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Risk Assessment Framework

Last updated 9 months ago

Why Risk Assessment is Needed

  • Comprehensive Evaluation: Assesses multiple risk factors including borrower profiles, asset volatility, and protocol risk.

  • Informed Integration: Helps builders decide which protocols to integrate with based on liquidity, rewards, and risk levels appropriate for specific use cases.

  • Portfolio Optimization: Provides valuable insights for portfolio managers and asset builders to optimize their strategies.

Parameters of the Risk Assessment Framework

  • Protocol Risk: Assesses the overall risk of different DeFi protocols based on their historical performance, security, and reliability.

  • Asset Volatility: Analyzes the price volatility of assets to assess potential risks.

  • Borrower Profiles: Evaluate the creditworthiness and risk associated with individual borrowers.

  • Ecosystem Analysis: Considers the broader DeFi ecosystem, including market trends and external factors that may impact risk levels.

Read more about our methodology .

here