Risk Dashboard

Hedge funds, family offices, and crypto-native funds rely on dashboards for portfolio risk aggregation and counterparty due diligence. Key functions include:

• Monitoring cross-margining exposure across multiple protocols
• Assessing smart contract risk scores before allocation
• Tracking real-time P&L and value-at-risk (VaR) metrics
• Analyzing liquidity depth for large position entry/exit.

Analysts use these tools for on-chain intelligence and market structure analysis. They perform:

• Whale wallet tracking to anticipate market moves
• Yield farming strategy backtesting and simulation
• Protocol comparison based on risk-adjusted returns
• Identifying systemic risk vectors like correlated asset failures. Their work feeds into reports, investment theses, and early warning systems.

Professionals focused on security and solvency use dashboards for continuous assurance. They verify:

• Oracle price feed accuracy and latency
• Smart contract code changes and admin key usage
• Economic security of bridges and cross-chain assets
• Stress test scenarios for black swan events. This proactive monitoring is essential for maintaining trust and preventing exploits.

Individual power users leverage dashboards for position management and opportunity discovery. They monitor:

• Leverage ratios and liquidation prices across platforms
• Funding rates and basis for perpetual futures
• Gas fee optimization for transaction timing
• New pool launches and associated rug pull risk indicators. Speed and actionable alerts are critical for this audience.

Emerging users who need macro-level transparency into DeFi markets. They analyze:

• System-wide leverage and interconnectedness
• Compliance with evolving regulations (e.g., Travel Rule)
• Market manipulation patterns and wash trading
• Consumer protection metrics like hack/exploit frequency. Dashboards help inform policy and supervisory approaches.

A comprehensive dashboard tracks several critical real-time metrics:

• Total Value Locked (TVL): Monitors the protocol's capital at risk.
• Collateralization Ratios: Tracks the health of loans in lending markets.
• Oracle Price Feeds: Monitors for price deviations or stale data that could trigger liquidations.
• Governance Proposals: Flags active votes that could alter protocol parameters or security.
• Smart Contract Upgrades: Tracks pending admin functions or timelock executions.

Dashboards are configured to detect anomalies indicative of an attack or exploit:

• Unusual Transaction Volume: Spikes in activity from a single address or contract.
• Large, Unexpected Withdrawals: Sudden outflows that deviate from normal patterns.
• Flash Loan Utilization: Monitoring for complex, multi-step transactions that could manipulate prices.
• Governance Attack Vectors: Tracking sudden accumulation of voting power.
• Failed Transaction Rate: A high rate can indicate a denial-of-service attack or bug.

These metrics assess the inherent security of the protocol's code and dependencies:

• Audit Status & Coverage: Displays audit reports, findings, and remediation status from firms like OpenZeppelin or Trail of Bits.
• Admin Key Status: Shows the number of privileged addresses (e.g., multi-sig signers) and timelock durations for critical functions.
• Code Complexity & Dependencies: Highlights reliance on external libraries or complex, unaudited code paths.
• Bug Bounty Program: Indicates active programs on platforms like Immunefi, including bounty size and payout history.

Focuses on economic security and market-driven risks:

• Concentration Risk: Shows the percentage of TVL or governance tokens held by the top addresses.
• Liquidity Depth: Measures available liquidity in DEX pools to assess slippage and exit liquidity.
• Stablecoin Depeg Risk: Monitors the price of protocol-held stablecoins against their peg.
• Impermanent Loss (IL): For Automated Market Makers (AMMs), estimates IL for liquidity providers.
• Borrow/Lending Utilization: High utilization rates can indicate liquidity crunches or insolvency risk.

Tracks the health and decentralization of the protocol's underlying infrastructure:

• RPC Node Health: Monitors latency and uptime of the nodes the front-end and contracts rely on.
• Oracle Network Status: Checks the liveness and decentralization of oracle providers like Chainlink.
• Bridge Security: For cross-chain protocols, monitors the TVL and security of connected bridges.
• Governance Participation: Tracks voter turnout and proposal execution success rates.
• Front-End Availability: Ensures the user interface remains accessible and uncensored.

These are the quantitative and qualitative data points a dashboard aggregates to assess protocol health. Key examples include:

• Total Value Locked (TVL): Measures capital at risk.
• Collateralization Ratio: Critical for lending protocols (e.g., minimum 150% on MakerDAO).
• Liquidity Depth: The available liquidity in DEX pools at specific price ranges.
• Governance Participation: Voter turnout and proposal execution rates.
• Smart Contract Concentration: The percentage of TVL controlled by a few large wallets or contracts.

Risk dashboards heavily rely on oracles for accurate, tamper-resistant external data (like asset prices). Monitoring oracle health is a core dashboard function, tracking:

• Deviation: Price differences between oracle sources.
• Latency: How stale the reported data is.
• Manipulation Resistance: The security model (e.g., decentralized oracle networks like Chainlink). A failure or manipulation in oracle data can lead to incorrect risk assessments and liquidations.

Automated systems that trigger the sale of undercollateralized positions to protect lenders. A risk dashboard monitors the liquidation engine's state, including:

• Liquidation Thresholds: The health factor or collateral ratio that triggers liquidation.
• Liquidation Bonuses: Incentives for liquidators.
• Pending Liquidations: The queue and size of positions eligible for liquidation.
• Liquidity Availability: Ensuring sufficient market depth exists to absorb liquidation sales without excessive slippage.

Proactive and reactive security measures integrated into risk oversight. This includes:

• Audit Reports: Tracking the status and findings from firms like Trail of Bits or OpenZeppelin.
• Real-time Monitoring: Using services like Forta to detect anomalous transactions or smart contract exploits as they happen.
• Bug Bounty Programs: Monitoring payout history and open vulnerabilities.
• Governance Attack Vectors: Assessing risks related to proposal spam, vote buying, or treasury management.

The risk that a protocol's safety is contingent on the health of other integrated protocols (composability). A dashboard maps and monitors:

• Integration Points: Which external contracts the protocol calls (e.g., using Uniswap for liquidations).
• Dependency Health: The risk metrics of those integrated protocols.
• Circuit Breakers: Whether fail-safes exist if a dependency fails. This is a systemic risk, where a failure in one protocol can cascade to others.

Analysis of financial incentives that could be exploited. Dashboards model scenarios like:

• Flash Loan Attacks: Simulating the capital required for price manipulation.
• Governance Takeovers: Cost to acquire enough voting power for a malicious proposal.
• Economic Abstraction: Risks from using non-native assets for gas or governance.
• Stability Mechanism Stress Tests: How the system behaves under extreme market volatility or bank runs.