New proposed measures of risk assessment of DeFi protocols revealed

The EEA has realeased the decentralized finance (DeFi) Risk Assessment Guidelines Version 1, which is a best practice guide for samples containing specific threats of DeFi protocols.

DRAMA Working Group at the EEA created the guidelines in cooperation with the companies like Consensys, Hacken, CertiK, Quantstamp, OpenZeppelin, Banco Santander, Bitwave, and others.

It is important to note that the document that we developed is useful for the identification of risks and for the provision of solutions on the DeFi protocol regulators, developers, investors, and users side.

Dyma Budorin, the co-chair of EEA DRAMA as well as the CEO of Hacken added that the guidelines are complete and serve as a standard that “resource founders and dev teams can rely on when working on their products. ”

Guideline details

The DeFi Risk Assessment Guidelines deal with governance risks, tokenonomic risks, software risks, liquidity risks, regulatory risks, and outside risks.

The guidelines discuss peculiarities of different types of software that may be issues, including oracles, smart contracts, and bridges and concern specifics of security and compatibility problems.

The document outlines the best practices in the areas such as user awareness, bug bounties, stress tests, patching, encryption of data and more in relation to DeFi risk management as mentioned above.

In an interview with Cointelegraph, Chaals Nevile, Director of technical programs at EEA, said that: “According to the Working Group’s suggestion, the Guidelines have to be kept as is, while publishing updates whenever needed.”

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