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  • Moonwell Risk Methodology
    • Risk Vectors
      • Volatility Risk
      • Liquidity Risk
      • Oracle Risk
    • Governance Parameters
      • Interest Rate Model
      • Liquidation Incentive
      • Collateral Factor
      • Close Factor
      • Borrow Cap
    • Methodology
    • Tooling
  • Proposal Diff Reports
    • Sonne SIP-08 Diff Report
    • Moonwell MIP-B08 Proposal Diff Report
    • Moonwell MIP-B09 Proposal Diff Report
    • Moonwell MIP-M09 Proposal Diff Report
    • Moonwell MIP-B10 Proposal Diff Report
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  1. Moonwell Risk Methodology

Risk Vectors

An overview of risk vectors on Moonwell

PreviousMoonwell Risk MethodologyNextVolatility Risk

Last updated 2 years ago

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Risk vectors

The Moonwell protocol is subject to multiple risks:

  • Economic risks (i.e Volatility, liquidity, oracles)

  • Technological risks (i.e Smart contracts, chain availability, bridges)

  • Governance risks (i.e Voting power)

In this document, we’ll focus on economic risk vectors. More precisely, we’ll define the nature of these risks and define how the protocol’s parameterizable governance parameters can be used to mitigate the protocol exposure to these risks.

We’ll also define the methodology we’ll use to validate the robustness of the Moonwell governance parameters as part of our with the Moonwell DAO.

engagement