We are excited to announce our strategic partnership with Ion Protocol!
Through this collaboration, we will assist Ion in underwriting LRT risk by conducting infrastructure risk assessments on portfolio-selected Actively Validated Services (AVS) on EigenLayer, to ultimately inform on various parameters within their protocol, such as LTV ratios, interest rate parameters, supply caps, and more.
Ion and EigenFi
Ion Protocol unleashes EigenFi by enabling restakers to collateralize LRTs and increase their exposure to restaking positions with low-risk, non-custodial reward accrual optimization. In addition, lenders can gain isolated exposure to LRT yield by lending to a specific LRT market or they can gain pooled exposure by depositing in the Ion Vault.
As liquid restaking protocols begin composing their AVS portfolio strategies, EigenFi protocols like Ion must look beyond traditional DeFi metrics and account for the infrastructure risk from EigenLayer services, which is crucial for LRT yield generation and security.
Risk Assessment of LRTs as a Collateral Asset
Using our mathematical, research-driven frameworks, we will assist Ion in evaluating LRT collateral health by focusing on infrastructure risks within their particular AVS portfolios. Based on those results, we will recommend protocol parameters, such as LTV ratios, interest rates, and supply caps, to prevent unforeseen liquidations, mitigate risky lending practices, and ensure secure scaling of its DeFi marketplace.
Tokensight's basic three step process is:
Underwriting AVS risk individually and in isolation (sample, illustrative dashboard: https://eigenavsrisk.streamlit.app/);
Underwriting AVS risk as a pooled service in the context of an AVS ecosystem on EigenLayer, taking in consideration thoughtful parameters that might mitigate/exacerbate its risk within that context;
Composing the aggregate, pooled risk of a given AVS selected-portfolio by an LRP and derive its health as a collateral asset in the context of Ion requirements.
Future Roadmap
We are committed to work closely with the Ion team and provide ongoing risk underwriting intelligence for Ion Protocol, including future quantitative modeling and cryptoeconomic security simulations.
In the coming weeks, we will share some findings from our research and joint collaboration. Stay tuned for more updates!
Learn more about Ion
Visit the official Ion's website to dive deeper and stay tune for latest updates!
Learn more on their ethos and the EigenFi space on the blog post: Underwriting LRTs: Balancing High Yields with Security.
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