Assessing Risk/Trust in Decentralized Finance
Duration: 00:28:22
Speaker: Jack Clancy
Type: Talk
Expertise: Beginner
Event: Devcon
Date: Jul 2026
In the last year, we have seen an explosion of smart contract based lending/borrowing, which has become the biggest sub-category of DeFi by far. But not all lending protocols are created equal. Different protocols have different risk/reward profiles, and comparing their rates are often apples to oranges comparisons. I would like to present a model I have been developing to assess the risk of different decentralized lending protocols that takes into account elements of both smart contract risk and liquidity risk. This model will be consumer facing, and will attempt to better inform protocol's users as they make important financial decisions. If we want people to be their own bank, we will need to provide tools akin to what current banks have when making financial decisions.