If the last few weeks have proven anything it’s that risk management in DeFi is everything
Competitive pressure of having the highest yield has driven many protocols towards higher risk collateral
@sparkdotfi SparkLend’s conservative approach of having only the most scalable assets like WBTC, ETH, wstETH as collateral has turned out to be a great decision
Additional safeguards are also in place such as redundant oracles, supply/borrow rate limits and isolation of complex looping markets to enable better risk pricing and easier unwinding
If we’re ever gonna compete with tradfi, risk management is gonna be absolutely key
twitter.com/Slappjakke/status/...
From Twitter
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
Like
Add to Favorites
Comments
Share




