Risk Framework
Superlend Risk Framework Overview
The framework categorizes and analyzes risks into four key areas:
Infrastructure Risks
Blockchain Risks: Issues like network congestion and node vulnerabilities.
Oracle Risks: Data manipulation and single points of failure.
Protocol Risks
Smart Contract Risks: Code exploits remain a concern despite audits.
Liquidation Risks: Cascading liquidations during price volatility.
Composability Risks: External protocol dependencies introduce systemic risks.
Governance & UI Risks: Decentralization inefficiencies and front-end vulnerabilities.
Economic Risks
Market Volatility: Sharp price declines impacting collateral.
Liquidity Risks: Limited liquidity obstructs operations.
Bad Debt: Insufficient collateral to cover loan defaults.
Ecosystem Risks
Regulatory Risk: Changing regulations may impact operations and compliance.
Superlend employs proactive strategies like Isolation Mode for high-risk assets, rigorous audits, and continuous monitoring to mitigate these risks.
Read the full report here ↓
Last updated