Risk Framework
  • 🪙Asset Risk
    • Introduction
    • Adding an Asset
    • Ledger Works
    • Risk Parameters
    • Risk Parameters per Asset
    • Oracle Price Feeds
  • 💸Liquidity Risk
    • Introduction
    • Historical Utilization
    • Borrow Rate Methodology
    • Supply Rate Methodology
    • Actual Rates & Parameters
    • Smart Contracts & HTS Tokens
  • 🔐Audits & Analysis
    • Introduction
    • Smart Contract Audit
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  1. Asset Risk

Ledger Works

PreviousAdding an AssetNextRisk Parameters

Last updated 4 months ago

The composability of DeFi enables Bonzo Finance to interoperate with the entire Hedera ecosystem. However, it also exposes the protocol to potential financial contagion. Assets supported by the protocol affect the platform at its core — particularly assets that can be supplied as collateral — which safeguard the protocol's solvency.

To ensure that an asset holds a reasonable amount of risk, Bonzo Finance has contracted for real-time risk assessment and monitoring, using machine learning / AI and actuarial models.

Ledger Works modeling takes into account data from SaucerSwap liquidity pools, Bonzo Finance utilization, counter parties (Supra oracles), and macro-economic forces, to derive appropriate risk parameter configurations for assets supported by Bonzo Finance.

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Ledger Works