Risk management is one of the most important subjects in DeFi, and @JUST DAO addresses this area through infrastructure that includes isolated markets.
The concept is particularly important because not every asset carries the same level of liquidity or volatility.
An isolated market can help separate certain collateral and borrowing relationships so that problems associated with one asset do not automatically expose the entire lending system to the same level of risk.
Think about the difference between:
• Highly liquid collateral
• Volatile collateral
• Newer assets
• Assets with thinner liquidity
• Assets with different oracle characteristics
Treating all of these identically can create unnecessary systemic exposure.
Risk segmentation is therefore an important concept for decentralized lending, and isolated-market architecture can provide a framework for managing different risk profiles more deliberately.
@JUST DAO @Justin Sun孙宇晨 #TRONEcoStar
The concept is particularly important because not every asset carries the same level of liquidity or volatility.
An isolated market can help separate certain collateral and borrowing relationships so that problems associated with one asset do not automatically expose the entire lending system to the same level of risk.
Think about the difference between:
• Highly liquid collateral
• Volatile collateral
• Newer assets
• Assets with thinner liquidity
• Assets with different oracle characteristics
Treating all of these identically can create unnecessary systemic exposure.
Risk segmentation is therefore an important concept for decentralized lending, and isolated-market architecture can provide a framework for managing different risk profiles more deliberately.
@JUST DAO @Justin Sun孙宇晨 #TRONEcoStar
