Research & Risk Assessment
How 0vix works with risk
0VIX's R&I team built, researches and maintains an in-house agent-based simulator tasked with continuously stress-testing all user position. The simulator is also used to perform deep-dives into anomalous lending market events on other protocols as well as to update our own internal snapshots of user risks taking place on all other major lending markets operating on Polygon.
We assess the market risk of the DeFi lending protocols using a multi-asset agent-based model to simulate ensembles of users subject to price-driven liquidation risk.
We argue that protocols should enact dynamic liquidation incentives and closing factor policies moving forward for optimal management of protocol risk.