A Risk Classification Framework for Decentralized Finance Protocols

Authors

Tara Chang
OneDegree

Joe Ho
Hailstone Labs

Zachary Tirrell, FSA, FIAA

Gwen Weng, FSA, CERA, FCIA
Hailstone Labs

Jo You
OneDegree

Description

Decentralized finance (DeFi) is an emerging and rapidly growing financial ecosystem with the defining feature that it is powered by blockchain technology. The focus of this paper is on risks for DeFi protocols that could lead to economic losses that could be insurable. This framework was designed around the risks associated with the existing and emerging DeFi protocols.

Report

A Risk Classification Framework for Decentralized Finance Protocols

A Risk Classification Framework for Decentralized Finance Protocols - Simplified Chinese

Access companion research report Decentralized Insurance Alternatives: Market Landscape, Opportunities and Challenges which examines a related aspect of decentralized finance.

Podcast

Research Insights - Insurance in Decentralized Finance.

Acknowledgments

The researchers’ deepest gratitude goes to those without whose efforts this project could not have come to fruition: the Project Oversight Group and others for their diligent work overseeing questionnaire development, analyzing and discussing respondent answers, and reviewing and editing this report for accuracy and relevance.

Project Oversight Group members:
Stephen Chan, PhD
Jeffrey Chu, PhD
Runhuan Feng, FSA, CERA
Petar Jevtic, PhD
Douglas W. Oliver, ASA, MAAA, ACAS
Franck Pralas, AQ
Jared Praniewicz, FSA, MBA, PhD
Geu Roo Yang, ASA
Yifan Zhang, FSA, MAAA

At the Society of Actuaries Research Institute:
Korrel Crawford, Senior Research Administrator
Alice Locatelli, Senior Director of Digital Strategy
David Schraub, FSA, MAAA, Senior Practice Research Actuary

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