Defi Risks

Analysis

&

Hedging

Why it matters?

Defi TVL
nearly $85b

Ethereum 64.6%

BSC 7.6%

Avalanche 3.6%

source: defillama

• Composability
• Open, permissionless and anonymous
• Transparency reduces the risk to leverage several time the same asset as collateral.

Defi Specificities

• What constitutes risk in DeFi, and who bears it?

• Market valuation risk
  • assets price volatility
  • collateral valuation and liquidation 
  • yield volatility
• Counterparty risk
• Protocol layer risks
  • Oracle manipulation risk
  • Smart contract risk
  • Governance risk
• Regulatory risk

Risks identification

• Valuation risk: Options providers
• Smart contract: Audit and insurances providers

Risk mitigation

& Hedging solutions

Partnering with Options providers

Relax! we got you covered.