EdgeEdge

Risk

Edge Risk Oracles unlock real-time risk management with automated parameter optimization.

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Real-time Risk Management

Increased Responsiveness to Worsening Market ConditionsElevated Capital Efficiency
Diagram

Features

Real-time Calibration

Real-time Calibration ensures that risk parameters are continuously updated in line with changing market conditions.

By automatically monitoring key factors like liquidity, volatility, and trading activity, the system can adjust parameters, such as loan-to-value ratios or price impact, almost instantaneously.

This minimizes the risk of exposure due to outdated settings and allows the protocol to remain responsive and optimized for current market dynamics without manual intervention.

Optimistic Updates

Optimistic Updates leverage pre-defined governance-approved bounds to streamline the risk parameter adjustment process.

Instead of requiring every individual update to undergo a full governance vote, parameters can be adjusted automatically as long as they remain within these approved limits.

This reduces the delays typically associated with governance processes while still ensuring the integrity and safety of the protocol, allowing for faster and more efficient implementation of risk management changes.

DeFi is maturing at a very fast pace, and having a responsive and algorithmic system of risk oracles will become an important differentiator for platforms. Chaos Labs' risk oracles will add significant value in this direction.