Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
IntoTheBlock is excited to unveil our latest integration: Tashi Finance on the DeFi Risk Radar. This integration brings advanced risk analytics to the Tashi network, enabling essential insights for users of Tashi Finance.
About Tashi Finance
Tashi Finance, operating on an EVM-compatible blockchain, brings a transparent, secure, and user-friendly platform to the DeFi community. Its core offering revolves around decentralized lending and borrowing across multiple blockchains, leveraging the power of Evmos for a seamless and interoperable DeFi environment.
As a lending protocol, our focus on risk analytics is paramount. It’s the foundation of our platform’s stability, user protection, and market confidence. With advanced analytics from IntoTheBlock, we ensure a secure and compliant lending environment, giving ourselves and our users a competitive edge in the DeFi landscape. — Kristine Boulton, Cofounder
DeFi Risk Analytics for Tashi
Risk analytics plays a pivotal role in the decentralized finance (DeFi) ecosystem, especially for platforms like Tashi Finance and their users. For users engaged in lending and borrowing, these analytics offer critical insights into asset volatility, loan health, and potential liquidation risks. This level of understanding is essential for making informed decisions, particularly in managing collateral and avoiding adverse events. Additionally, risk analytics help users adapt to market changes, ensuring their investment strategies remain sound and responsive to the dynamic nature of the DeFi market.
The increased insight into potential risks also provides the Tashi protocol with several key benefits.
Risk Mitigation: By incorporating advanced risk analytics, Tashi Finance can proactively identify and mitigate systemic risks that could impact the platform’s stability. This includes monitoring the health of loans and the robustness of the overall lending pool.
Market Confidence: The implementation of sophisticated risk analytics tools instills confidence among users. In a market where trust is paramount, demonstrating a commitment to risk management can be a significant competitive advantage.
Regulatory Compliance: As the DeFi space continues to mature, regulatory scrutiny is increasing. Robust risk analytics can help Tashi Finance stay ahead of regulatory requirements, ensuring compliance and protecting both the platform and its users.
Institutional Appeal: For institutional investors, the presence of comprehensive risk analytics is often a prerequisite. This feature can make Tashi Finance an attractive option for high-value funds and investors looking for secure DeFi opportunities.
A Closer Look at Key Risk Indicators in the DeFi Risk Radar
The DeFi Risk Radar for Tashi includes 21 advanced risk indicators. Let’s take a look at a few of those indicators so we can get a better understanding of how they help reduce risk.
Health factor distribution
This indicator is key in assessing the risk of liquidation. It tracks the ‘health factor’ of borrowers’ positions, showing how close they are to being liquidated (a factor below 1 indicates liquidation risk). By displaying the distribution of borrowers across various health factors, this indicator provides a clear view of the protocol’s borrower. If most of the supply has a low health factor, the solvency of the pool/protocol is at risk due to big liquidations.
Net Liquidity flows
Monitoring the flow of funds into and out of the protocol, this indicator is crucial for identifying liquidity risks. It offers insights into the confidence level of users in the protocol’s stability. For instance, a notable outflow could indicate user concerns, possibly leading to a liquidity crisis. In contrast, a surge in inflows can be interpreted as a sign of growing user trust in the protocol.
Whale Credit History
In any protocol, the actions of ‘whales’ can significantly influence market dynamics. This metric keeps tabs on the lending, repayment, and liquidation activities of these major depositors. By closely observing whale behavior, the protocol can anticipate market shifts and fine-tune its risk management strategies. This indicator is particularly useful for understanding the strategies and intentions of high-volume traders within the protocol.
A Step Forward in DeFi Analytics
Adding Tashi Finance to our Risk Radar is part of our ongoing effort to expand and enhance our services in the DeFi industry. We are excited about this new integration and believe it will offer valuable insights to our retail and institutional clients.
We invite you to explore Tashi Finance’s analytics on our platform and share your feedback: https://defirisk.intotheblock.com/metrics/evmos/tashi
IntoTheBlock is committed to being an invaluable partner for investors navigating DeFi, providing cutting-edge on-chain data services and economic risk analytics.
Introducing Tashi Finance Risk Analytics on IntoTheBlock was originally published in IntoTheBlock on Medium, where people are continuing the conversation by highlighting and responding to this story.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.