Navigating DeFi Risk Management

This chapter explores the complex landscape of risk management within decentralized finance (DeFi) protocols, emphasizing the importance of observability, monitoring, and dynamic risk adjustment through risk oracles. The discussion highlights the evolution of Chaos Labs from empowering teams to manage risk independently to providing comprehensive risk management solutions tailored for the unique needs of DeFi projects. Collaborative efforts with platforms like Aave are examined, shedding light on governance processes and strategies for adjusting collateral factors amid volatile market conditions.