Abstract
This proposal outlines Anthias Labs’ offering of risk management services to Euler vault creators that do not specialize in risk parameterization or risk monitoring.
Overview
Anthias Labs (FKA Defishy) is a boutique on-chain advisory firm focused on risk management and system design. We have worked with Euler DAO since June of 2022 and completed multiple risk monitoring tools for Euler via Euler Grant 1 and Euler Grant 6.
With the launch of Euler V2, our team understands that many potential vault creators (particularly asset issuers or representatives of other asset-issuing DAOs) will be looking to create Euler vaults without having quite the expertise or experience in the DeFi lending space to understand the best parameters to have in place, how to price different collateral assets, what oracle providers to use, and more.
This is where Anthias Labs is offering to assist Euler vault creators. Creating a vault or system of vault can be analogous to operating a protocol in and of itself. There are many considerations to be made including product positioning, fee structures, and business development. Anthias Labs will help vault creators manage and monitor risk to ensure their vaults avoid bad debt and remain functioning to the highest degree of efficiency.
We will help determine, monitor, and update risk parameters for your vault including:
- Collateral Factors (LTV)
- Borrow Caps
- Supply Caps
- Liquidation Incentives
- Liquidity Targets
- Interest Rate Models
- Oracle price feed selection
Offering Support
We will work with Euler vault creators similarly to how we have treated engagements for other large DeFi lending protocols. The creator or governor can connect with our team to begin an initial system audit and/or parameterization review depending on the state of the vault’s liveness. After this initial review, our team can begin constructing the necessary real-time monitoring infrastructure to monitor risk for each vault.
An example of that real-time monitoring infrastructure can be viewed here. We monitor borrower health, total liquidity, bad debt, fees accrued, assets borrowed over time, and more.
Our team will then serve as a general risk partner to the vault creator, helping this creator update and adjust parameters along the way as the landscape of market risk changes and launch complimentary vaults with similar structures.
About Anthias Labs
Anthias Labs has years of experience in the DeFi lending risk management space and has supported some of the largest lending protocols including Euler, Aave, Compound, and more with either risk parameterization or tooling.
Aside from working with our lending protocol partners on a day to day basis around complex topics from collateral pricing to risk parameterization, our team has helped lending protocols navigate a variety of black swan events including severe liquidation cascades, the ezETH depeg in April of 2024, the USDC depeg in March of 2023, and more.
We are excited to continue our contribution to Euler by supporting vault creators on all areas of risk. We hope that this can help onboard even more great Euler vaults.
Contact
If you would like to discuss the risk profile of your vault or vault concept or begin the process of parameterization and risk monitoring, reach out to Charlie from our team on Telegram at OxBroze or via email at charlie@anthias.xyz