While there are many vectors of risk in DeFi, most of them fall into some of the following five groups, explains IntoTheBlock CEO jrdothoughts:
3. Governance Risks
Even though DeFi governance models are architecturally decentralized, many of them are controlled by a small number of parties that can influence the outcome of any proposal. This aspect is not as concerning as it seems as many of the large parties able to influence the outcome of DeFi governance votes are in that position only because of their active participation and alignment in the DeFi ecosystem – a clear sign of interest alignment.
networks in which a number of validators collude to influence the rewards distribution in the network and can effectively stop the functioning of DeFi protocols.We tend to obsess about the protocol and infrastructure aspects and often ignore the native market risk exposure of investments in the space. For instance, investments in non-stablecoin AMM pools are vulnerable to loss if the price of the assets diverges drastically from the time when the liquidity was supplied to the pool.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wear It Your Way: Juan Felipe Duque, CEO of Leonisa Is Betting Big On ShapewearAt the core of what Leonisa does with its range of products is to put women at the very centre — from its shapewear to activewear apparels.
Read more »
T-Mobile reports its 'strongest year ever' says the CEO of America's 5G leaderT-Mobile announced another industry-leading fourth quarter as it added 844,000 net new postpaid phone customers during the quarter and 2.92 million for 2021.
Read more »
Thélios Appoints New CEOFormer Luxottica executive Alessandro Zanardo succeeds Giovanni Zoppas who exited the eyewear manufacturer controlled by LVMH last May.
Read more »
Alphabet's CEO says the company is 'looking at blockchain'Google's parent company Alphabet Inc. is exploring blockchain technology. 'Any time there is innovation, I find it exciting,' - CEO Sundar Pichai said on a conference call on Tuesday. Read more ⤵️
Read more »
Peugeot CEO: how we will target global expansion | AutocarPeugeot's key focus is on improving customer service and expanding globally, according to CEO Linda Jackson
Read more »
Siemens Gamesa replaces CEO after three profit warningsStruggling wind turbine maker Siemens Gamesa on Wednesday named a new chief executive for the second time in less than two years, more than 10 days after issuing the latest in a series of profit warnings.
Read more »