Risk control & mitigation

The discussion within the community about Factory1754 has been intense and still not yet satisfying, and there is room for improvement in our communication and execution. We have learned valuable lessons from this experience.

Looking ahead, while we have a Credit Supervisory Group in place, there is a need for a more comprehensive strategy regarding ongoing risks once a pool is onboarded / established.

Occasionally, we receive pitch decks from competitive projects, and the most recent one highlighted a flaw that not only shows Centrifuge but also other market players—namely, the need for continuous risk control.

While we as Centrifuge acknowledge that this responsibility lies with the creator/originator of the pool, we should explore ways as a marketplace to ensure that incidents similar to the aforementioned pool do not occur again.

Would love to have your thoughts on this if you think it makes sense to discuss this further ahead.

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