Introduction

Traditional finance has a strong existing risk infrastructure and knowledge base. As investors and institutions yeet assets over to Crypto and make use of the financial instruments in DeFi, we need to consider a new subset of risks.

Thus, we will do a deep dive into DeFi & Crypto-specific risks and explore what makes DeFi special in terms of the risk you will encounter.

Afterwards, we will look at some established risk measures for Market Risk and Liquidity Risk and how this can be applied to DeFi.

Finally, we take a look at Operational Risk with focus on Legal Risk as this a very special circumstance many DAOs and Protocol need to pay attention to.

Contributors

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