The Future of DeFi Risk Management Lies in Building the Right Parametersby@kclofxj40v00003b6mmo3h3ih2

The Future of DeFi Risk Management Lies in Building the Right Parameters

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The DeFi sector, built on principles of decentralization and global accessibility, faces a significant challenge in the absence of a centralized risk management framework, placing the onus of risk assessment on users. This complexity, stemming from technological vulnerabilities and economic uncertainties, necessitates a comprehensive risk management system. While smart contract risks are often addressed, economic risks, such as market manipulation, forced liquidations, and economic attacks, are gaining attention. Protocols are now introducing parameters like Max Loan-to-Value, Liquidation Thresholds, and Interest Rate Curves to mitigate risks, empower users, and ensure the safety of assets in the dynamic landscape of DeFi

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Kate Kurbanova HackerNoon profile picture

@kclofxj40v00003b6mmo3h3ih2

Kate Kurbanova

An experienced Web3 startup founder, who is passionate about DeFi and actively engaged in it since its early days.


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