Goals, Mission & Focus
Our Goals
The RWG has several key directives that it aims to work towards. These include:
Enhancing the Risk Management Framework
The RWG will focus on strengthening the risk management practices within the protocol. This involves developing comprehensive frameworks, methodologies, and tools to identify, assess, and mitigate risks effectively.
Identifying and Assessing Potential Risks to the Protocol
The RWG will actively monitor and analyze potential risks that could impact the security, stability, or functionality of the protocol. By identifying and assessing these risks, the RWG can proactively address vulnerabilities and strengthen the protocol's defenses.
Developing Risk Mitigation Strategies
Based on the identified risks, the RWG will develop and implement risk mitigation strategies. These strategies may include control mechanisms, safeguards, or procedural changes to reduce the likelihood or impact of risks on the protocol.
Ensuring the Safety and Security of Users' Funds
A primary goal of the RWG is to prioritize the safety and security of users' funds within the Inverse Finance ecosystem. The WG will implement measures to protect users' assets and minimize the potential for financial losses due to security incidents or vulnerabilities.
Monitoring and Managing Operational Risks
The RWG will actively monitor and manage operational risks within Inverse Finance. This involves assessing risks associated with operational processes, third-party integrations, or any other factors that may introduce vulnerabilities or disrupt the protocol's smooth functioning.
Collaborating with Other Working Groups
The RWG recognizes the importance of cross-functional collaboration. It aims to work closely with other working groups within Inverse Finance to address risks that span multiple areas. This collaboration ensures a holistic and coordinated approach to risk management across the protocol.
Our Mission
Compared to traditional finance, significantly more risks are present in DeFi for individual users and protocols: malicious actors, esoteric smart contract risks, unknown correlations between tokens and projects, short track records, unproven and experimental economic theories, anon teams/devs, and the irreversibility of transactions to name just a few.
Perhaps RWG's most important directive is therefore to instill a security framework in the everyday workflows of our core DAO contributors. We have a moral obligation to keep the safety of our users top of mind whilst we brainstorm, ideate, collaborate, code, test, and review. This is especially important in the current environment, where the rapid growth of DeFi has attracted bad actors who have exploited vulnerabilities in our past systems and in those of our peers. We believe we are well poised to innovate risk management practices for our own community members and the wider DeFi ecosystem.
Our Focus
The importance of a robust risk management function within Inverse Finance is hard to overstate at this moment. From providing ongoing due diligence for new lending opportunities, risk assessment of new liquidity strategies, to managing an increasingly complex and disparate array of DOLA Fed lending facilities, a solid Risk Management team is essential to the success of Inverse going forward.
The RWG will remain open to new ideas and continually search for improved, research-backed methods of analyzing, managing, and addressing risks. In time, the RWG will become an asset, and will ensure that value-add to the DAO is accompanied with an elevated and on-going degree of risk awareness.
Last updated