I spent about 6 months on creating an implementation of @ISDA's SIMM for DeFi.
I hope this represents a step forwards in providing an open-source guide to removing the risks around arbitrary leverage in DeFi.
As a lender, you can use an AI model to audit collateral LTV limits for safety.
This gives you minimum safety bounds, derived from cross-industry quants and experts to rely on.
For risk managers, structurers and lending protocols this gives you a benchmark on how to set parameters with a full methodology.
Now caveats, I'm really not happy with putting this out there today as I feel like it's not finished and I keep finding errors here and there. But it's at the point, where my errors seem to just be grammatical or bad phrasing, or some random slop that snuck in. Whilst, I remain unable to say this is a final version I think it's well past the 80/20 principle and needs to just get out there.
Contributors ...
1) As mentioned, this isn't finished (arg). There are a number of sloppy parts in the back components in particular.
2) We need to extend this to a new crypto risk class
- btc, eth, sol, avax etc.
- bridges (wBTC, BTC.b etc)
- wrappers / staking (wstETH, weETH, wETH etc.)
3) I'll be working on some edits over the next few weeks into FX, Equities, Comm etc as they're a LOT easier than tokenised funds.
Link in comments ...
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Legendary Greek composer and pro-democracy icon Mikis Theodorakis died earlier today.
He will be dearly missed, but his music legacy will live on for centuries to come.
The sadness and tragedy of today's anniversary passes from generation to generation. As young, diaspora Cypriots we will never forget the injustices against our homeland, and we will continue to campaign for a reunified Cyprus.
Cyprus belongs to its people, no one else.
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Please welcome @coinbase who are our 2nd partner next to @Shopify who are helping us bring the program back fully operational.
Take a read of the news article for now info on the program road map.
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