Understanding The Risky Business of DeFi’s Risk Curators

Ruca is Head of Growth and Giel (aka deepcryptodive) is Head of Risk Curation at kpk.In this episode, we discuss the role of DeFi's risk curators, the individuals and teams responsible for assessing, pricing, and managing risk across DeFi lending markets and tokenized yield vaults. We talk about how risk curation has become both an essential service and a risky business of its own, as witnessed firsthand in Stream Finance's recent xUSD blowup.------🔗 Essential Show Links 🔗► Newsletter: https://the-edge.xyz► Youtube: https://youtube.com/@DeFiDad► Apple: https://tinyurl.com/edgepod► Spotify: https://tinyurl.com/edgepodspotify► Linktree: https://linktr.ee/edge_pod► Follow DeFi Dad: https://x.com/DeFi_Dad► Follow Nomatic: https://x.com/Nomaticcap► Learn DeFi: http://defidad.com/------The Edge Podcast Sponsor Resources♦️ REDSTONE | THE LEADING MODULAR BLOCKCHAIN ORACLE♉︎ TOROS | EXPONENTIAL GAINS WITH LEVERAGED TOKENS🌅 NEUTRL | THE NEXT GENERATION OF CRYPTO-NATIVE YIELD🌞 SOLSTICE | PERMISSIONLESS INSTITUTIONAL YIELD⚔️ KATANA | DEEP LIQUIDITY & REAL YIELD🥞 SYRUPUSDC BY MAPLE | DEFI'S PREMIUM YIELD ASSET🏦 MANTLE | INNOVATING THE FUTURE OF ONCHAIN FINANCE🐡 PUFFER INSTITUTIONAL | STAKING SOLUTIONS FOR SCALE🌊 RIVER | A CHAIN-ABSTRACTION STABLECOIN SYSTEM⚙️ GEARBOX PROTOCOL | ONCHAIN LENDING REIMAGINED------Timestamps0:00 - Intro 5:34 - History of kpk9:38 - What is the job of a risk curator in DeFi?13:53 - Distinguishing between permissionless lending markets and vaults24:23 - What happened with Stream Finance and xUSD?32:52 - Sponsor break34:07 - How do risk curators make money?38:07 - The role of risk ratings in DeFi41:34 - Could risk curators run liquid strategies in their own markets/vaults?46:24 - Sponsor break47:43 - Risk of hard-coded fundamental oracles vs market price oracles57:06 - DeFi must prioritize safety over higher yields1:01:26 - kpk’s approach to risk curation1:05:30 - kpk’s retail-facing DeFi product suite1:07:11 - Closing------🔗 Guest Links 🔗► kpk website: https://kpk.io/► kpk on X: https://x.com/kpk_io► Giel on X: https://x.com/deepcryptodive------All opinions expressed by hosts and podcast guests are solely their own opinions. Podcast guests and hosts may have positions in the assets or other matters discussed in this podcast. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Do your own research. This is not a recommendation or endorsement to buy any token(s) related to any platform(s) discussed.