Loans that can’t be liquidated profitably are a big problem for lending protocols, one bad loan and their reputation is at stake.
Lending protocols don’t have easy hedges against it.
◦ Poor market intelligence
Other risk monitoring platforms provide little to non shared cross-protocol insights on loan volume and liquidation prices.
◦ Capital stuck in pools
To cover the risk LPs allocate a conservative amount of capital “just in case”. That capital is stuck and can’t be put to work.
◦ No insurance available
Protocols are fully exposed to risk of bad debt. Bad debt will have to be socialized in the end.
DeRisk helps you protect against bad debt!
DeRisk is a cross-protocol risk monitoring platform that provides increased insights allowing lending protocols to better assess the risk
and better protect their users. And unlike other monitoring platforms, DeRisk provides options as protection for loans with high risk
of not being liquidated profitably.