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Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
LABS
Services

Protocol Insolvency Risk Assessment

Quantitative analysis of lending, borrowing, and derivatives protocols to identify conditions leading to undercollateralization and design economic safeguards.
Chainscore © 2026
overview
CORE SERVICE

Smart Contract Development

Secure, production-ready smart contracts built to your exact specifications.

We architect and deploy custom smart contracts for DeFi, NFTs, DAOs, and enterprise applications. Our code is built on Solidity 0.8+ with OpenZeppelin libraries, following industry-standard security patterns to mitigate risks like reentrancy and overflow.

  • Full Lifecycle Support: From initial design and development to deployment, verification, and ongoing maintenance.
  • Rigorous Security: Multi-stage review process including automated analysis, manual audits, and formal verification for critical logic.
  • Gas Optimization: Every contract is optimized for efficiency, reducing user transaction costs by up to 40% on average.
  • Cross-Chain Ready: Deployable on EVM-compatible chains (Ethereum, Polygon, Arbitrum) and custom Layer 2 solutions.

We deliver audited, battle-tested code that forms the secure foundation for your Web3 product, accelerating your time-to-market by weeks.

key-features-cards
METHODOLOGY

Our Quantitative Risk Assessment Framework

We translate complex on-chain data into actionable risk scores using a proprietary, multi-layered quantitative model. This framework provides the objective, data-driven foundation for all our Protocol Insolvency Risk Assessments.

01

Multi-Factor Risk Scoring

Our proprietary algorithm synthesizes over 50 on-chain and market data points across liquidity depth, leverage exposure, collateral quality, and governance centralization into a single, interpretable risk score.

50+
Data Points
4
Risk Pillars
02

Real-Time On-Chain Monitoring

Continuous surveillance of protocol reserves, debt positions, and oracle dependencies. We detect early-warning signals like collateral concentration spikes or liquidity pool imbalances before they trigger a crisis.

24/7
Monitoring
< 5 min
Alert Latency
03

Scenario & Stress Testing

Model protocol resilience under extreme but plausible market conditions. We simulate black swan events, cascading liquidations, and oracle failures to quantify potential capital shortfalls.

100+
Historical Scenarios
Custom
Tail Risk Models
04

Comparative Protocol Analysis

Benchmark a protocol's risk profile against direct competitors and sector averages. Understand your relative leverage, liquidity coverage, and centralization risks within the DeFi landscape.

Peer-Based
Benchmarking
Sector-Wide
Context
06

Actionable Mitigation Roadmap

Receive prioritized recommendations to de-risk your protocol or investment. We provide clear steps for improving liquidity buffers, diversifying collateral, and enhancing governance safeguards.

Prioritized
Recommendations
Technical
Implementation Guide
benefits
FROM ASSESSMENT TO ACTION

Deliver Tangible Security & Business Outcomes

Our Protocol Insolvency Risk Assessment translates complex on-chain data into actionable intelligence, directly protecting your treasury and informing strategic decisions.

01

Quantify Counterparty Exposure

We map and quantify your protocol's direct and indirect exposure to high-risk counterparties, providing a clear dollar-value risk profile for treasury management.

100%
Exposure Clarity
Real-time
Risk Updates
02

Identify Liquidity Black Holes

Our models pinpoint concentrated liquidity risks and potential withdrawal bottlenecks before they trigger a crisis, enabling proactive capital reallocation.

> 50
Risk Vectors Tracked
24/7
Monitoring
03

Stress Test Under Market Shock

We simulate extreme market volatility and cascading liquidations to model your protocol's solvency under black swan events, stress-testing your economic design.

10+
Shock Scenarios
Historical & Synthetic
Data Models
04

Receive Actionable Mitigation Roadmap

Get a prioritized list of concrete steps—from adjusting collateral factors to diversifying treasury assets—to immediately de-risk your protocol's financial position.

Clear
Priority Actions
Technical & Strategic
Recommendations
05

Benchmark Against Industry Peers

Understand how your protocol's risk profile compares to leading DeFi projects, providing context for governance decisions and investor communications.

Top 100
Protocols Benchmarked
Comparative
Risk Scoring
06

Enable Data-Driven Governance

Equip your DAO or core team with clear, auditable risk metrics to support proposals for parameter changes, integrations, and treasury management.

Auditable
Methodology
Governance-Ready
Reporting
Choose the Right Level of Risk Intelligence

Structured Assessment Tiers

Compare our comprehensive insolvency risk assessment packages, designed to scale with your protocol's complexity and your team's operational needs.

Assessment ComponentCore AnalysisAdvanced MonitoringEnterprise Intelligence

Smart Contract Vulnerability Audit

On-Chain Liquidity & Debt Position Analysis

Oracle Dependency & Manipulation Risk

Governance & Centralization Risk Score

Cross-Protocol Contagion Modeling

Real-Time Risk Dashboard Access

Custom Alerting & Threshold Configuration

Priority Incident Response & Advisory

Email (48h)

Slack (24h)

Dedicated (4h)

Comprehensive Risk Report & Mitigation Plan

PDF Report

Report + Workshop

Report + Quarterly Reviews

Typical Engagement

$8K - $15K

$25K - $50K

Custom Quote

how-we-deliver
STRUCTURED, TRANSPARENT, AND ACTIONABLE

Our Four-Phase Assessment Methodology

We deliver a systematic, evidence-based analysis of your protocol's financial resilience. Our methodology is designed to provide CTOs and founders with clear, prioritized insights to mitigate risk and strengthen their treasury's defense.

01

Phase 1: Protocol Architecture & Economic Model Review

We conduct a deep-dive analysis of your smart contract logic, tokenomics, and revenue streams. This identifies structural vulnerabilities in yield mechanisms, collateralization ratios, and governance dependencies that could lead to insolvency under stress.

100+
Smart Contracts Audited
10+
Economic Models Analyzed
02

Phase 2: On-Chain Data & Financial Health Analysis

Using proprietary analytics, we assess your protocol's real-time financial health. We track key metrics like Total Value Locked (TVL) volatility, reserve asset composition, and liability maturity mismatches to quantify exposure.

Real-Time
Risk Monitoring
12+
Financial KPIs Tracked
03

Phase 3: Stress Testing & Scenario Simulation

We simulate black-swan events, liquidity crises, and coordinated attacks against your protocol. This reveals breaking points and provides a clear understanding of capital requirements under extreme market conditions.

50+
Custom Scenarios
Historical & Synthetic
Market Data
04

Phase 4: Actionable Risk Report & Mitigation Roadmap

You receive a prioritized report with specific, technical recommendations. This includes smart contract upgrades, treasury diversification strategies, and contingency plans to harden your protocol against insolvency risk.

Executive & Technical
Report Versions
30-Day
Implementation Support
Technical Due Diligence

Protocol Insolvency Risk Assessment FAQ

Answers to common questions from CTOs and founders about our quantitative risk assessment methodology, process, and deliverables.

Our assessment is a quantitative, multi-layered analysis based on the Protocol Solvency Framework (PSF). We analyze: 1) Smart Contract Risk (code quality, centralization vectors, upgrade mechanisms), 2) Economic Risk (tokenomics, incentive sustainability, reserve adequacy), and 3) Operational Risk (governance, team controls, oracle dependencies). We produce a Solvency Score (0-100) and a detailed report with actionable recommendations.

conclusion
CORE SERVICE

Smart Contract Development

Secure, production-ready smart contracts built for scale and compliance.

We architect and deploy custom smart contracts that power your Web3 application's core logic. Our development process is built on security-first principles, utilizing formal verification and comprehensive audit trails to mitigate risk.

  • Standard & Custom Tokenomics: Implementation of ERC-20, ERC-721, ERC-1155 and bespoke token models with vesting, minting, and governance controls.
  • DeFi & dApp Logic: Automated market makers (AMMs), staking pools, lending protocols, and multi-signature wallets.
  • Security & Compliance: Code developed with OpenZeppelin libraries, tested with Hardhat/Foundry, and prepared for third-party audits.
  • Gas Optimization: Every contract is optimized for efficiency, reducing deployment and transaction costs by up to 40%.

From initial concept to mainnet deployment, we ensure your smart contracts are a reliable and scalable foundation, not a liability. We deliver audit-ready code in 2-4 weeks for standard MVPs.

ENQUIRY

Get In Touch
today.

Our experts will offer a free quote and a 30min call to discuss your project.

NDA Protected
24h Response
Directly to Engineering Team
10+
Protocols Shipped
$20M+
TVL Overall
NDA Protected Directly to Engineering Team