Parameter Optimization

Fine-tune your protocol’s risk controls to strike the optimal balance between revenue and market risk exposure

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Parameter Optimization

Parameter-Tuning At The Protocol Level

  • Parameter Recommendations Portal

    Chaos Labs delivers ongoing and automated risk management tools to empower your community to mitigate risk and optimize for capital efficiency with a high degree of transparency.

  • Asset Recommendations

    Chaos Labs analyses the market structure of different tokens, assessing market capitalization, liquidity and volatility risk to inform dynamic parameter setting.

  • Simulations

    Chaos Labs runs thousands of agent-based, and off-chain simulations with different market conditions to uncover the optimal set of parameters for minimizing the risk and maximizing protocol profit.

Securing Industry-Leading Protocols


  • Simulation Framework

    Our simulation framework is innovative and industry-leading. At the core of our methodology is a high-fidelity agent-based simulation platform, which we use to simulate on-chain debt and liquidation behaviors. We conduct hundreds of thousands of simulations using different price trajectories to measure critical variables such as Value at Risk and Borrow Usage at statistically significant confidence levels. This approach gives us an unparalleled view of the various configurations of assets and chains, identifying the optimal parameters to protect protocols from potential bad debt, irrespective of market conditions.

  • Transparent Approach

    We are committed to transparency, which is integral to our risk management solution. By transparently providing clear and concise information, we enable the protocols to make data-driven decisions that optimize portfolio performance while minimizing the potential for loss. We continuously open our tools and methodologies to the broader DeFi community, enabling anyone to explore our simulations, analyze the results, and understand the potential consequences of different parameter configurations. This approach promotes accountability, trust, and community education, facilitating more informed decision-making and driving the growth and success of the DeFi ecosystem.

Risk Monitoring Features

”Launching the dYdX Chain underscored the need for an exceptional Incentive Program to bootstrap activities. Chaos Labs was the community's choice, and they were recognized for their dYdX contributions and expertise. They've since delivered an excellent trading incentive program, with an exceptional analytics platform, recurring reports, and continuous communication.”

David Gogel, dYdX Foundation

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