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  • Anyone here working as a Crypto Risk Analyst? Need some guidance

    Web3Learner_Abaz

    Web3Learner_Abaz

    @Web3LearnerAbaz
    Updated: Sep 12, 2025
    Views: 123

    I’m curious about careers in crypto risk analysis, especially on the protocol and market side. I’ve done some work in traditional finance risk but DeFi feels like something complete different. I am curious to understand how do people actually build risk models when the data is so volatile and unpredictable?

    I keep reading about LP risk and impermanent loss but I’m not sure how professionals really measure it in practice. Same with lending protocols like how do you figure out if a liquidation engine is reliable enough during stress events? And do audits overlap with a risk analyst’s role or is that more of a security thing?

    I’m trying to figure out whether I should go deeper into quant skills or spend more time understanding smart contracts, audits and liquidation systems.

    I would really appreciate insights from anyone who’s working in this role or hiring for it.

    6
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  • ChainSavant

    @ChainSavant • 1mo

    Risk models in DeFi don’t work the same way as in banks. The data moves too fast and markets are not deep enough. What helps more is running simple stress tests. Take old events like the Terra crash or the FTX collapse and see what would happen to a protocol’s liquidation engine if prices dropped that fast again.

    For LP risk, impermanent loss is only one part. The real issue is if liquidity providers can pull out their funds when the market is moving quickly. You have to check if the pool has enough depth and if the assets in it move too closely together.

    Audits are useful, but they are not the main work of a risk analyst. You don’t check every line of code, but you do look at the audit report to see if there are weak points in things like oracles or collateral rules. Those details tell you a lot about protocol risk.

    If you are learning for this role, try to read smart contracts enough to understand how collateral and liquidations are set. But spend more time on how the system reacts when the market is under stress. That’s what will make you stand out when people are hiring.

  • FintechLee

    @FintechLee • 1mo

    From my side, the hardest part is judging liquidation engines. On paper they look fine, but when gas fees spike or prices crash, many of them fail. I would suggest to check how much volume they can handle in a single block and whether there are enough keepers running. Without that, even a good risk model won’t save the protocol.

  • amanda smith

    @DecentralizedDev • 1mo

    I am keeping an eye on this thread. Loving the discussion

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