Level has joined forces with RiskLayer to explore innovative approaches for risk management within DeFi. This partnership aims to enhance economic security in the DeFi space.
This collaboration will leverage RiskLayer's expertise in risk quantification and Level’s work with stablecoin collateralized assets, integrating Eigenlayer vaults and stablecoins like USDT and USDC. Together, they aim to address critical risk factors, enhancing the overall security framework for stablecoins in DeFi.
Objectives & Scope of Collaboration
The primary objectives of this partnership include:
Risk Research Collaboration: Both teams will focus on conducting in-depth research to assess the risks associated with using stablecoins as collateral within DeFi applications. This includes analyzing the feasibility and risk factors of incorporating stablecoins in various decentralized financial ecosystems.
AVS Risk Evaluation: A significant focus will be placed on evaluating Actively Validated Service (AVS) risks in DeFi. This will help ensure that any applications leveraging stablecoins as collateral can do so with a robust understanding of the associated risks.
Data Sharing and Access: Level will provide RiskLayer access to relevant datasets on stablecoin usage to support their ongoing research and enable real-time risk mitigation strategies.
The scope of this collaboration extends to utilizing RiskLayer's Proof of Risk Consensus model to provide credible, on-chain risk assessments. This approach will be instrumental in safeguarding institutional and retail investors by providing real-time, decentralized risk insights that mitigate potential economic threats.
Conclusion
This partnership marks a significant step toward creating a more secure and sustainable DeFi ecosystem by focusing on stablecoin risk management. By joining forces, Level and RiskLayer aim to unlock the potential of stablecoins while addressing their risks, thus enabling a safer DeFi environment. The insights and tools developed from this collaboration are expected to benefit not only the partners but also the wider DeFi community by setting new standards for risk management in DeFi.
About RiskLayer
RiskLayer is a decentralized risk quantification platform built on EigenLayer and Symbiotic.fi. With a network of risk nodes, it provides real-time risk metrics and employs its Proof of Risk Consensus to deliver trusted, on-chain risk assessments.
About Level
Level is an innovative stablecoin platform that uses restaked, dollar-denominated tokens such as USDT and USDC to provide fully collateralized, yield-bearing stablecoins like lvlUSD. It focuses on unlocking the economic potential of stablecoins to strengthen crypto infrastructure.