QX DeFi Risks Compass
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  • 🏦Risks in TradFI
    • Global Finance - Key Framework
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    • Basics I - Terminology & Concepts
  • ⛓️RISKS IN DEFI
    • Deciphering DeFi Risks
    • DeFi Risk Management
    • EEA DeFi Risk Assessment Guidelines
    • Basics II - DeFi
  • 🥷Systematic Risks
    • Market Risk
      • Defining Market Risk
      • Assessing Market Risk
      • Managing Market Risk
      • In Practice
      • Liquidity Risk
        • Defining Liquidity Risk
        • Assessing Liquidity Risk
        • Managing Liquidity Risk
        • In Practice
    • Compliance & Legal Risk
      • Defining Compliance & Legal Risk
      • Assessing Compliance Risk
      • Managing Compliance Risk
      • In Practice
    • Bridge Risk
      • Defining Bridge Risk
      • Assessing Bridge Risk
      • Mitigating Bridge Risk
      • In Practice
    • Oracle Risk
      • Defining Oracle Risks
      • Assessing Oracle Risks
      • Managing Oracle Risks
      • In Practice
  • 🥷UNSYSTEMATIC RISKS
    • Software Risk
      • Defining Software Risks
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      • Managing Software Risks
      • In Practice
    • Economic/Financial Risks
      • Defining Economic Risks
      • Assessing Economic Risks
      • Managing Economic Risks
      • Tokenomics Risk
        • Defining Tokenomics Risks
        • Assessing Tokenomics Risk
        • Managing Tokenomics Risk
      • MEV Risk
        • Defining MEV Risk
        • Assessing MEV Risk
        • Managing MEV Risk
      • Credit Risk
        • Defining Credit Risk
        • Assessing Credit Risk
        • Managing Credit Risk
    • Governance Risk
      • Defining Governance Risk
      • Assessing Governance Risk
      • Managing Governance Risk
    • Standards Conformance Risks
      • Defining Standards Conformance Risks
      • Assessing Standards Conformance Risks
      • Managing Standards Conformance Risks
    • Security Risk
      • Security Risk Assessment
      • Security Risk Mitigation
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  1. Systematic Risks
  2. Bridge Risk

Assessing Bridge Risk

Here are the key steps I would recommend to assess the bridge risk for Uniswap v4 based on the EEA DeFi Risk Assessment Guidelines:

  1. Identify Bridge Dependencies

  • Determine if Uniswap v4 relies on any blockchain bridges for cross-chain interoperability.

  1. Evaluate Bridge Architecture

  • Understand the bridge structure - whether centralized or decentralized.

  • Assess the smart contracts responsible for token bridging.

  1. Analyze Security Safeguards

  • Review the cryptographic mechanisms, access controls, monitoring and fraud detection measures implemented. (Section 4.2.4)

  1. Check Operational History

  • Examine the uptime track record and any previous hacks or outages suffered.

  1. Confirm Contingency Planning

  • Verify if alternative bridges have been integrated as backup mechanisms for continuity of operations.

Essentially the assessment should focus on structural soundness, security robustness, reliability metrics and availability of contingency options for all blockchain bridges that the Uniswap protocol might rely on for interoperability across chains. This can help determine any risks from single points of failure, inadequate protection or lack of redundancy. Please let me know if you need any clarification!

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Last updated 1 year ago

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