EEA Introduces Version 1 of DeFi Risk Assessment Guidelines

The Enterprise Ethereum Alliance (EEA) has recently introduced Version 1 of its decentralized finance (DeFi) Risk Assessment Guidelines in an effort to set a standard for identifying and mitigating risks in DeFi protocols. The guidelines were developed by the EEA’s DRAMA Working Group in collaboration with various organizations including Consensys, Hacken, CertiK, and others. This document aims to serve as a valuable resource for regulators, developers, investors, and users in the DeFi space by providing strategies to manage risks effectively.

Co-chair of EEA DRAMA and CEO of Hacken, Dyma Budorin, emphasized the importance of these guidelines as a comprehensive standard that founders and development teams can rely on while working on their products. The guidelines cover a wide range of risks pertaining to governance, tokenomics, software, liquidity, regulatory compliance, and external market factors, and offer best practices for risk management in areas such as user education, bug bounty programs, data encryption, and more.

The EEA plans to regularly update the guidelines as necessary, and they are intended to support founders and developers in the secure development and management of DeFi protocols. The guidelines also serve as a framework for regulators and licensing authorities when assessing and licensing DeFi projects. This initiative comes in the wake of recent DeFi protocol attacks, such as the Li.Fi protocol breach, which underlines the importance of robust risk assessments and preventative measures in the DeFi space to protect users and assets from vulnerabilities.