Risk Management Framework

With Allez Labs, risk management partner of AAVE, KAMINO, DAI etc

To secure liquidity on the protocol, Current partners with Allez Labs to architect and oversee our dynamic risk parameters. By integrating their quantitative simulations, Current continuously stress-tests all liquidation thresholds and interest rate curves. This framework is designed to ensure that our high-leverage looping mechanisms remain resilient against cascading liquidations, flash loan exploits, and oracle manipulations.

1. Prelaunch Phase (Protocol Validation)

Mechanism Review: Auditing economic models and Auto-Deleveraging (ADL) designs to identify and mitigate systemic risks.

Oracle Infrastructure: Finalizing oracle architectures, configurations, thresholds, and logic across all collateral assets.

Risk Calibration: Calculating and setting exact Loan-to-Value (LTV) ratios, liquidation thresholds, reserve factors, and volatility buffers prior to market deployment.

2. Post-Launch (Real-Time Monitoring)

System Deployment: Building core risk infrastructure, including real-time risk dashboards, price oracle integrations, and liquidity monitoring systems

Active Oversight: Continuously monitoring protocol exposures, identifying emerging market risks, and coordinating emergency response processes via structured weekly and quarterly reviews.

Transparency: Maintaining data dashboards, conducting competitor benchmarking, and publishing data-driven risk updates for the community.

3. Ongoing (Asset Scaling & Governance)

Transparency: Designing precise configurations for onboarding new assets and deploying new lending markets.

Token Evaluation: Applying Allez Labs' proprietary risk-scoring methodology to dictate supply caps, borrowing limits, and parameterization for all newly proposed tokens.