Risk Framework

With billions of locked assets, Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) have boomed in recent years.

The industry has been forming various standards to manage the emerging risks related to the hyper-connected ecosystem. Hasai will be audited by 3-4 well-known audit firms as detailed in Security & Audits.

The following documentation analyses the fundamental risks of the protocol and describes the processes in place to mitigate them. A Hasai Market Risk Assessment has been produced by the quantitative modeling team of Hasai. The Safety Module have been stress tested via agent-based simulation. The simulations show that the model can remain solvent under extreme market conditions, exhibiting proper risk management. As a result, Hasai provided some parameter suggestions to reduce insolvency risk further.

If you have any questions, join us on Discord; our team and community members look forward to helping you understand risk management procedures.

Asset Risk

Asset Risk goes over the implications of adding a new asset. Hasai's methodology quantifies the risks of each asset assessing its fit as well as the appropriate risk parameters.

Liquidity Risk

Liquidity Risk presents the liquidity risk mitigation strategies in place validating them by an analysis of the historical utilization of the protocol and the liquidity of HTokens.

Interest Rate Model

Hasai's borrow interest rate model is central in the management of liquidity risk. As utilization rises, so do the borrow rates as a consequence of the higher price of capital. The Interest Rate Model is described with the parameters of each currencies.

Interest Rate Simulation

Hasai's interest rate simulation spreadsheet where you can check protocol metrics and assess a loan.