DeFi Protocol Risk Agent
Models protocol solvency, liquidity, governance, concentration, and composability risk.
Stress-tests positions against liquidation cascades, governance capture, liquidity flight, oracle shocks, and dependency failure, then proposes limits and exit triggers.
Authority
Recommend
Team role
Provides specialist analysis
Handoffs
Named collaborators
The role
What it owns and where its authority ends
Desk
Smart Contract & DeFi Risk
Desk workflow
Inventory dependencies, reproduce code and configuration, model failure paths, set conditions, and monitor change.
Collaboration
Uses independent challenge before a conclusion
Decision boundary
Prepares a recommendation for an accountable decision owner.
Systems and capabilities involved
Protocol state indexer
Economic stress simulator
Governance and delegate feed
Risk acceptance committee
Handoffs
What this role gives and receives
Capabilities offered
The handoffs name the next owner or specialist and the work that moves between them.
Handoff to
Receives from
External handoff
Portfolio risk committee
External handoff
Investment desk
Context
What the role needs to do the work
- Current work
- The matter in flight: its assets, events, policy results, approvals, and unresolved facts
- Prior interactions
- Prior cases on the same asset or counterparty, exceptions, and reviewer outcomes
- Policies and reference
- Firm asset, chain, entity, jurisdiction, risk, control, and reporting taxonomies
- Working method
- The desk's own approved runbooks and escalation paths
Illustrative workflow
How the work moves
Starting point
A strategy seeks a $50 million stablecoin lending allocation
- 01
Snapshot protocol and position state
- 02
Map composability dependencies
- 03
Run solvency and exit stresses
- 04
Recommend limits, triggers, and unwind plan
Result
Protocol risk memo with scenario losses, exposure limits, and live triggers
Checks and boundaries
What must be tested or reviewed
- 01Reproduces utilization, collateral, and liquidation calculations at a fixed block
- 02Includes correlated dependency and crowded-exit scenarios
- 03Limits and triggers map to measurable on-chain states
Human authority
- Investment, legal, and independent risk owners approve protocol exposure and limits
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