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Kamino Risk Assessment Framework

To ensure the ongoing success of the protocol, K-Lend has a comprehensive, ongoing Kamino Risk Assessment Framework (KRAF) that scrutinizes all the dimensions of token risk outlined above.
In addition, KRAF provides risk analysis at the overall protocol level, e.g. liquidations-at-risk, and risk scenario analysis.
KRAF is tailored to be both robust and adaptive, capable of identifying vulnerabilities before they compromise the system. The Risk Council can take action empowered with all the available information.
The KRAF dashboard is available at https://risk.kamino.finance.
The dashboard provides the following information:

Risk Overview

  • Summary table of current deposits, borrows, supply and borrow interest rates, utilization ratios, and global caps.
  • Quick glance at liquidations-at-risk should a X% token price shock happen.
  • Bar plot of total deposits and borrows for each token
  • Interest rate curve (supply & borrow) and the current utilization and rates for each token

Loans Analysis

  • Filterable, tabular view of the status of each loan (current LTV, maximum LTV, Liquidation LTV, deposits, borrows, net value)
  • Bar plots per loan of current LTV, maximum LTV, Liquidation LTV, deposits, borrows, net value

Detailed Token Decompositions:

  • Bar plot of each loan’s deposits and borrows broken down by token

Volatility Risk Analysis:

  • Time series plot of Token prices
  • Time series plot of token Parkinson’s realized volatility measure

Liquidity Risk Analysis

  • Time series plot of percentage price impact for buy or sell Jupiter swaps of various USD sizes

Price Shock Analysis:

  • Scenario analysis should a uniform price shock be applied to all tokens
  • Scenario analysis should a uniform price shock be applied to individual tokens
  • Scenario analysis should a correlation price shock be applied to all tokens
  • Scenario analysis applying historic event price shocks to tokens

Risk Reduction Analysis:

  • Post-intervention scenario analysis should a uniform price shock be applied to all tokens
  • Post-intervention scenario analysis should a uniform price shock be applied to individual tokens
Furthermore, the dashboard provides a separate tab that gives a granular breakdown of an individual loan’s status and risk over time.