A risk framework for onchain allocation
A layered DeFi risk framework for allocators: contract, oracle, parameter, venue, counterparty, liquidity, dependency and operational risk, and the control for each.
What is a liquidation?
What a liquidation is in DeFi: the health factor, what triggers it, who performs it and why, partial versus full liquidation, and how cascades form.
What is institutional DeFi?
A DeFi position becomes institutional through custody, a documented approval, daily valuation and an audit trail, rather than through its size.
What is TVL, and is it a good risk metric?
TVL is the value of assets deposited into a protocol. What it counts, what it quietly leaves out, and why it measures adoption rather than safety or liquidity.