Protecting LPs against bad debt

DeRisk is a cross-protocol, risk monitoring platform with insurance on risky loans for DeFi lending protocols.

Shared cross-protocol insights

Reduced cost of capital

Insurance on risky loans

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Honestly, is this the way to protect against bad debt?

Loans that can’t be liquidated profitably are a big problem for lending protocols, one bad loan and their reputation is at stake. But lending protocols don’t have it easy to hedge against it.

Poor market intelligence

Other risk monitoring platforms provide little to non shared cross-protocol insights on loan volume and liquidation prices.

Stuck capital in pools

To cover the risk LPs allocate a conservative amount of capital “just in case”. That capital is stuck there and can’t be put to work.

No insurance available

Protocols are fully exposed to risk of bad debt. Bad debt will have to be socialized in the end.

This Is How You Can Protect Against Bad Debt And Optimize The Cost Of Capital

DeRisk is a cross-protocol risk monitoring platform that provides increased insights allowing lending protocols to better assess the risk and better protect their users. And unlike other monitoring platforms, DeRisk provides options as insurance for loans with high risk of not being liquidated profitably.

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Step 1

Open-source risk monitoring across lending protocols

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A free, open-source platform that monitors all active loans in lending protocols and provides shared insights of the outstanding loans.
- How many loans
- Liquidation prices
- How much collateral is at risk of being liquidated at given price levels

‍“I have my loans perfectly under control, why would I need this?”
‍It’s open source and it’s free, just by participating and sharing your data you can get improved intelligence, your community will appreciate it.

Step 2

Customized risk level monitoring for each protocol

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DeRisk provides customized simulations for each protocol on the impact of price movement on the profitability to liquidators.

“Why should I trust your risk assessment over mine?”
In the paid version we will share the results and methodology used, and we can fine tune the parameters to fit your assessment methods. Our team has vast experience in data science and financial modeling.

Step 2

Customized risk level monitoring for each protocol

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DeRisk provides customized simulations for each protocol on the impact of price movement on the profitability to liquidators.

“Why should I trust your risk assessment over mine?”
In the paid version we will share the results and methodology used, and we can fine tune the parameters to fit your assessment methods. Our team has vast experience in data science and financial modeling.

DeRisk provides customized simulations for each protocol on the impact of price movement on the profitability to liquidators.

“Why should I trust your risk assessment over mine?”
In the paid version we will share the results and methodology used, and we can fine tune the parameters to fit your assessment methods. Our team has vast experience in data science and financial modeling.

Step 2

Customized risk level monitoring for each protocol

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Step 3

Cost of capital optimization

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No need to have a sizable security pool to cover the potential risk.

- Decrease the security pool hence by adding DeRisk insurance against bad debt.
- Optimize incentivization for the "security pool" capital providers through DeRisk monitoring

"Why should I trust your simulations?”
In the paid version we will share the results and methodology used, and we can fine tune the parameters to fit your assessment methods. Our team has vast experience in data science and financial modeling.

Step 4

Insurance on risky loans

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The insurance is a long put/call option, the option sustains a high enough value of collateral, so that the borrowed capital is covered.

- Transparent pricing (% on top of oracle price)
- It can be vis smart contract or by RFQ on a case by case basis

“For how long are the options valid?”
We have estimated a typical duration of 1 month, but we can agree otherwise.

The insurance is a long put/call option, the option sustains a high enough value of collateral, so that the borrowed capital is covered.

- Transparent pricing (% on top of oracle price)
- It can be via smart contract or by RFQ on a case by case basis

“For how long are the options contracts valid?”
We have estimated a typical duration of 1 month, but we can agree otherwise.

Step 4

Insurance on risky loans

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Join us making web3 a safer and less risky place for users and protocols.

Every day more protocols are joining us, this is the latest development roadmap.
‍
July 2023 - testing with protocols that signed up
August 2023 - Open source platform for Starknet
Additional networks - 4 weeks to setup
Options Insurance - August 2023

Sign up for the open source risk monitoring platform. It’s free (for now).

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We are part of Carmine Finance, our mission is to make DeFi a less risky place

Carmien Finance is an Automated Market Maker enabling anyone to buy and sell options at a fair price. It's services are for traders, liquidity providers and Hedge Funds and investors.

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