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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
Chaos Labs Risk Oracles

Features

Offchain Workflow

Situated within the Chaos Cloud, this segment is the analytical engine where various risk indicators are continuously monitored. These include but are not limited to, utilization of supply and borrowing caps, debt ceiling thresholds, market volatility, and patterns indicative of anomalous user behaviors. A simulation is triggered upon exceeding specific, pre-established thresholds, computing the newly optimized parameter settings. Following rigorous internal validation, these recommendations are prepared for on-chain submission.

Onchain Workflow

Recommendations validated off-chain are funnelled to a custom Risk Stewards Contract, embodying sophisticated business logic to authenticate the proposed parameter adjustments. Each parameter update will be bounded by governance-established limits to facilitate "optimistic updates"—that is, updates enacted without necessitating manual review or governance cycle. The updates are enacted upon successful validation, dynamically refining the Market's operational parameters.

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.

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Parameter Optimization

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Mechanism Design

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