Felix Bekemeier’s Post

Hedging #risks in interacting with a #DeFi protocol is becoming increasingly important, in particular for yield-bearing protocols. But can risk transfer work without a traditional insurer? Matthias Nadler, Fabian Schär and I explored this question in our latest paper, including a reference implementation. Feel free to have a look:

GitHub - cifunibas/decentralized-insurance: A fully decentralized and smart contract-based insurance protocol.

GitHub - cifunibas/decentralized-insurance: A fully decentralized and smart contract-based insurance protocol.

github.com

Armin Satzger

Market Risk Analyst at Swiss Re

1y

Cool paper, Felix! Would you mind elaborating on why it is necessary to require the passing of block time T2 prior to the redemption of the A tranches via the fallback function? As they are the senior tranche, why shouldn't they be allowed to choose to claim from the unaffected protocol during the ReadyToDivest phase already? Is this precaution only in place since there is no way to check if a previous divest() call reverted?

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