Hear ye! Hear ye!
A new dawn is setting upon Scully’s horizon. In our continued efforts to provide a better user experience for Reaper Farm users, the Byte Masons are rolling out, within the next couple of weeks, descriptive Tags that should help categorize Crypts, all of which present different risks, at different levels.
This new measure looks to help guide users towards Crypts that correspond to their own risk profile. Reaper’s Tags are based on objective facts that provide insights to help form better risk assessments for each individual user.
Crypt strategies and their underlying assets will be appropriately categorized and referenced using the risk assessment framework Reaper leverages. If you would like to know more about the framework and Reaper’s Crypt-building methodology in general, check out this article. Essentially, Tags will be organized by risk vectors.
Reaper Farm risks
The amount of risk brought on by the Reaper platform through their smart contracts will depend on the level of complexity of the Crypt’s strategy. Most strategies will be low in complexity, with some being medium, and “high” used sparingly. This is consistent across our existing collection of strategies and we expect this trend to continue going forward.
The size of the underlying assets in terms of Market Capitalization will help determine “in part” the amount of volatility an asset could be subject to. Essentially, we can deduce, within reason, that a token with a higher Market Cap is less likely to be impacted by volatility induced from speculation and macroeconomic events. Note that the “lowest common denominator” asset risk will be shown. So for instance, if a Crypt utilizes an LP pair whereby one asset has $1B market-cap and the other has $25M market-cap, the asset risk would effectively fall under the “< 50 Million” category.
Evaluated by the amount of time the underlying protocol has been in production. Basically, the reasoning here is – the longer a platform has been live, the more likely it has been subjected to different attack vectors and withstood the ultimate test, which is the test of time.
Algorithmic tokens and stablecoins involve experimental peg-keeping mechanisms and unique layers of risk not found in collateralized or over-collateralized tokens. Such assets are generally more at risk of losing their peg.
Combined, the Tags provide invaluable information on each Crypt, and can help a user delineate the Crypts that resonate with them the most.
Looking at the above example, the USDC-DEI Crypt from Liquid Driver is:
- Low complexity
- The “lowest common denominator” in terms of market-caps for the underlying assets falls in the 50 Million to 500 Million category.
- Liquid Driver as a platform has been \\\”live\\\” for more than 3 months.
- Contains an algorithmic stablecoin.
Also, hovering over each icon will show a descriptive tooltip that communicates the information summarized above.
For more information, users can click on the \\\”More Info\\\” tab and will be able to see the full description of each tag.
That’s all folks! You can read more about Reaper here.
If you have any questions about Tags or Reaper, Tess3rac7 and other members of the team will be hosting an AMA on the subject on Tuesday April 26th @ 11pm UTC.
So don\’t be a stranger and join our discord!