Thanks to Risk DAO’s risk assessment framework, the Aurigami team was able to conduct a rigorous quantitative analysis and simulation of worst case scenarios for the protocol. The assessment showed that Aurigami has zero value at risk even in the most stressful situation, thanks to safe lending parameters that are matched to the available liquidity.
Aurigami has adopted some of Risk DAO’s recommendations based on its analysis, most notably to introduce borrow and lending caps for all the supported assets. The collateralization ratios of certain borrowable assets will also be revised to optimal levels, allowing sophisticated users to reach even higher levels of leverage and capital efficiency with the platform.
Aurigami and Risk DAO will continue to work together and manage risk on the lending protocol. Armed with a real-time analytics dashboard to monitor risk-related KPIs, built by Risk DAO in collaboration with Kyberswap, Aurigami will be able to quickly respond to changing liquidity environments.
Risk management has always been one of the highest priorities for Aurigami. The protocol already leads the pack with zero bad debt and zero insolvent accounts, as tracked by Risk DAO’s Bad Debt Dashboard which compares users risks across leading DeFi lending platforms.
Risk DAO is a service DAO spearheaded by B.Protocol and 1kx that focuses on providing a new, open source risk assessment framework and associated audits based on real historical data and projections based on current liquidity and potential price outcomes.
Aurigami is an Aurora-based lending protocol utilizing gamification and the concept of Liquid Locked Tokens to create a new, sustainable tokenomics model for liquidity mining. It is currently the third largest protocol by TVL on Aurora.
“Working with Risk DAO has been a breeze, and we’re excited to establish continuous risk assessment with their proprietary algorithms,” said Lucas Huang, Co-Founder of Aurigami. “Thanks to our collaboration, Aurigami will continue to be one of the safest and most efficient lending market, and we intend to keep it that way”.
The Aurigami protocol enables users to lend, borrow, and earn interest with their digital assets. Depositors provide liquidity to the protocol to earn a passive income, while borrowers are able to borrow in an over-collateralized fashion. Aurigami is pioneering the concept of “Liquid Locked Tokens” to allow a DeFi-native solution for vested tokens. Aurigami is a proud recipient of Proximity Lab’s DeFi Grants.
About Risk DAO
Risk DAO is a service DAO focused on providing a new, open source risk assessment framework and associated audits to DeFi lending and borrowing protocols as well as L1 networks.