Top 1 Chainrisk Competitors & Alternatives And Similar Risk management Projects

Problem we are solving DeFi protocols, DEXes and users all have one thing in common. They want to make money, not lose money. If bad debt is acquired by a lending protocol, it’s a big problem not only for that specific lending protocol but even for the rest of projects in the chain. The inherent volatility of the crypto market means that things can go south in a matter of minutes. The liquidity pools can dry up very fast and some loans may not be possible to be liquidated profitably. To solve this problem, lending protocols need to have allocated a large amount of capital “just in case”, which implies having a large amount of capital stuck in their security pools, which means a high cost of capital for the DeFi protocols, and a lot less capital flowing in the whole ecosystem. Other lending protocols have it worse, they can’t allocate such cushioned, “just in case” liquidity pools, which makes it risky for the borrowers. How we solve it DeRisk monitors lending protocols and loans and compares them against available capital on DEXes, and liquidators' smart contracts and makes it very easy to detect loans with higher risk of becoming underwater. To illustrate, consider a protocol that has lent ~$15mil worth of tokens while available capital on DEXes is just above $10mil. This situation poses a considerable risk not only to that protocol, but to other lending protocols and the broader DeFi ecosystem. This monitoring results in a powerful early warning system that benefits the entire ecosystem. Part of DeRisk is also the possibility to compare lending protocols and to see individual loans with a risk of being liquidated and the loan history.

Risk management

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