🔎Risk parameters

Key risk parameters, we are checking before integration of any protocol into Rebalance strategies.

  • Security Audits: Availability of independent audits from reputable firms.

  • Bug Bounty Programs: Presence of reward programs for vulnerability discoveries.

  • White Hat Hackers: Interaction with the white hat hacker community and history of identified vulnerabilities.

  • Development Activity: Number of commits, active developers, repository update frequency.

  • Issues and Pull Requests: Number of open/closed issues, pull request handling activity.

  • Test Coverage: Availability and quality of tests, code coverage.

  • Documentation: Completeness and accessibility of technical and user documentation.

  • Liquidity and TVL: Total value locked in the protocol and TVL trend. At least $3M over 90 days. No significant liquidity drawdowns.

  • Transaction Activity: Number of transactions, transaction volume, average transaction size.

  • Integration with Other Protocols: Number and volume of interactions with other DeFi protocols.

  • Social Metrics: Quantity and quality of discussions on platforms like X, Reddit, Discord, Telegram.

  • Community Reputation: Overall sentiment and trust in the protocol within the crypto community.

  • Public Appearances and Partnerships: Presence of partnership agreements with known projects, participation in crypto conferences and other public events.

  • Tokenomics: Token distribution structure, vesting mechanism, inflationary or deflationary model.

  • Liquidity: Overall liquidity in the protocol, support from major market makers.

  • User Activity: Number of active users, unique addresses.

  • Financial Reporting: Availability and regularity of financial reports, public accessibility.

  • Revenue and Expenses: Project's revenue and expense structure, funds allocated to development and marketing.

  • Jurisdiction: Location of the team and project's legal structure.

  • Regulatory Compliance: Level of compliance with laws and regulations, availability of legal consultations and opinions.

  • Protocol Age: At least 1 year in the market.

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