Benchmarking DeFi Risk- A Regulatory Intelligence Framework for Stablecoins and Liquidity Protocols

The Essential Guide to Measuring and Managing Risk in DeFi’s Fast-Moving Markets

Benchmarking DeFi Risk: A Regulatory Intelligence Framework for Stablecoins and Liquidity Protocols provides a data-driven approach to understanding systemic risks in decentralized finance. The paper introduces a composite risk scoring system that evaluates major protocols like Aave, Compound, MakerDAO, and Uniswap across liquidity, governance, oracle, and compliance dimensions. It highlights stablecoin fragility, oracle concentration, and legal uncertainty as core vulnerabilities, while offering actionable recommendations such as real-time proof-of-reserve, certified oracle standards, and embedded supervision dashboards. This framework equips policymakers, investors, and institutions with practical tools to navigate and mitigate risk in the rapidly evolving DeFi ecosystem.