DeFi RISK Engine

Overview

DeFi RISK Engine is an open-source risk modeling tool for DeFi protocols, designed to assess institutional lending risks using raw on-chain data. The project focuses on modular, autonomous, and scalable risk computation, starting with Health Factor (HF) prediction.

Key Features

• Raw On-Chain Data – No third-party APIs, ensuring institutional-grade reliability.
• Modular OOP Architecture – Separate classes for fetching, processing, and modeling.
• Extensible Risk Models – Initial focus on Health Factor (HF) calculations.
• Open Source & Transparent – Built in public for collaboration and industry credibility.
• Integrated Data Collection – Uses DeFi Data Collectors as a submodule for on-chain data.

MVP Goals

The first milestone is to develop a functional Risk Engine that:

1. Fetches raw on-chain data directly (collateral price, loan value, liquidation threshold, etc.).
2. Identifies institutional wallets (hedge funds, investment firms).
3. Computes historical Health Factor (HF) for these wallets based on their positions.
4. Structures this data into a clean dataset for analysis.
5. Integrates an initial Risk Model to analyze HF trends and potential liquidation risks.

Project Structure

-engine/
│── data_collectors/        # Submodule for fetching raw blockchain data
│── data_processing/        # Processes fetched data into structured format
│   ├── processor.py
│   ├── __init__.py
│
│── risk_core/              # Risk Engine logic (actual risk models)
│   ├── risk_model.py
│   ├── __init__.py
│
│── tests/                  # Unit tests for each module
│
│── config.py               # Configurations (RPCs, addresses)
│── requirements.txt        # Dependencies
│── README.md               # Documentation
│── .gitignore              # Ignore unnecessary files

Installation

# Clone the repository
git clone --recursive https://github.com/yourusername/risk-engine.git
cd risk-engine

# Initialize and update submodules
git submodule update --init --recursive

# Install dependencies
pip install -r requirements.txt

Usage

Updating the DeFi Data Collectors submodule If the DeFi Data Collectors repo is updated, sync it in the Risk Engine:

git submodule update --remote

Contributing

We welcome contributions! If you're interested in improving risk models or blockchain data processing, feel free to submit PRs or open discussions.

License

MIT License