IntoTheBlock, the blockchain data analytics firm, is thrilled to announce the alpha release of a new product for risk analysis in DeFi; The IntoTheBlock Risk Radar. The Risk Radar aims to shed light on the most relevant economic factors that can put DeFi deposits at risk of losses.
DeFi protocols have been a hotbed of activity in the blockchain industry, with many projects experiencing explosive growth over the past year. However, the potential risks in the sector have become more apparent with notable exploits such as the $115M attack on the Mango protocol, a $130M attack on Cream Finance by manipulating the value of esoteric collateral, and a $100M oracle manipulation attack that hit Compound back in 2020.
With the Risk Radar, IntoTheBlock seeks to offer its expertise in the field of risk management to provide greater transparency into the risks affecting lending protocols and help their teams and users navigate these in the best possible way.
The IntoTheBlock Risk Radar builds upon the success of IntoTheBlock Quant, where institutional partners can generate yield on their assets with an automated risk management layer. However, the focus of the IntoTheBlock Risk Radar is specifically on lending protocols, which can be vulnerable to economic manipulation attacks that drain depositors’ funds without them realizing it.
IntoTheBlock has partnered with Benqi and Euler to release the Alpha version of the Risk Radar product for these protocols. The product provides a set of metrics that can be used to manage risk in DeFi, including Health Factor, Liquidators Leaderboard, Blocks Elapsed to Complete Liquidations, and Whales Credit History.
“Decentralized finance has tremendous potential, but the institutional adoption of DeFi hinges on effective risk management. Technical, governance, and economic risks are all significant, but it’s the economic risks that are often overlooked. Economic risks may not make headlines, but they account for the majority of losses in DeFi protocols.
As we move forward, it’s essential that we prioritize economic risk management to ensure the long-term success and sustainability of the DeFi ecosystem.” – Jesus Rodriguez, CEO at IntoTheBlock.To learn more about the IntoTheBlock Risk Radar and the metrics it provides, visit the IntoTheBlock Risk Radar page.
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