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Core Units
Core Units (21)
RISK - Risk

4

of 21 Core Units

RR

RISK

Risk

Accepted
Since 24-Oct-2022
Finance

The Risk Core Unit ensures Maker Protocol can continue to grow safely by having proper risk management parameters and risk mitigation tools applied.

What we do

The Risk Core Unit Mandate includes but is not limited to following tasks:
  • Risk Parameter Proposals
  • Collateral Onboarding Evaluations
  • Monitoring of Portfolio Exposure
  • Community Involvement
  • Monitoring DeFi Systemic
  • Risk Research
  • Risk Tooling
Collateral Onboarding Evaluations & Monitoring
Risk Core Unit ensures risk evaluation of newly onboarded vault types by evaluating qualitative and quantitative risk metrics of crypto collateral assets. All evaluations from our team are based on the internally developed framework.
After collateral is added, collaterals’ risk metrics are also continuously monitored:
  • Liquidity of collateral asset
  • Qualitative changes to risk profile of collateral asset
  • Vault type collateralization ratio distribution
  • Vault user behaviour
  • Liquidation Curve
  • DAI liquidity (AMMs & Secondary lending platforms)
Community Involvement
  • Interact with community when proposing adjustments to risk parameters
  • Educate community members in understanding the protocol and risk aspects
  • Train community contributors to take on tasks themselves
  • Develop tooling for community members
  • Review community proposals
  • Get feedback on business vs. risk decisions
DeFi Systemic Risks
MakerDAO is highly integrated in DeFi which continues to expand in total value locked and its complexity. Team needs to evaluate how any potential parameter change or new collateral inclusion at MakerDAO might affect systemic imbalances. Furthermore, it needs to monitor DAI dynamics in DeFi to properly address liquidity and other risk related concerns.
Research
Besides ongoing risk related work and tasks, the team also aims to perform regular research on potential new protocol design topics and how it might benefit MakerDAO’s risk profile. This also includes monitoring of DeFi addressed above and considering potential integrations by other protocols.
Risk Monitoring & Tooling
Risk monitoring is ensured by regular usage of our internally developed risk models. All risk estimates and methods used are being reported openly and frequently. Plan is to have all our risk models (risk premium, max debt ceiling, VaR) completely automated and run regularly with an open web access so that the community can get informed about Maker’s risk profile at any time.
This also allows easier access to new Risk contributors and establishment of additional Risk Core Units.

Team Size

11

FTEs


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Expenses

View all expenses of the RISK Core Unit
Activity Feed
Expense Reports

The RISK Core Unit is currently working without auditor

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