One of DeFi’s defining features is the absence of intermediaries. This offers immense benefits but also shifts the onus of risk management onto users and, ultimately, onto the protocol and its infrastructure. With the rapid evolution and increasing complexity of DeFi, comprehensive risk management solutions are more crucial than ever, as evidenced by the many smart contract audits conducted. While auditing remains a required component of Web3 security, it's essential to acknowledge its limitations, as evidenced by the occurrence of 167 major exploits estimated to amount to $3B+ in 2022, half of which involved audited smart contracts.

Moreover, code vulnerabilities aren’t the only risks in DeFi. Extreme market conditions can lead to insolvency for credit-based protocols, and blockchain congestion or faulty oracles can cause operational inefficiencies and loss of funds. Without an optimized system for assessing risk 24/7, Web3 businesses jeopardize the reliability of their protocols.

Where auditing services take a defensive approach to protocol risk, Ledger Works steps in on the offensive, partnering with protocols to operationalize next-generation risk management. By leveraging cutting-edge techniques like real-time computational rules and continuous execution of deterministic models, Ledger Works turns risk into a competitive advantage for Web3 companies.

Varys Capital is excited to partner with Ledger Works to scale a full-suite Web3 risk management service. Ledger Works' RiskOps-as-a-Service solution delivers situational awareness, protocol protection, and financial optimization. The platform’s integration of real-time data analytics and financial modeling equips companies with actionable insights, enabling sophisticated responses to market dynamics.

What does Ledger Works do?

Ledger Works’s risk management platform provides Continuous Controls Monitoring (CCM), allowing protocols to analyze, protect against, and predict operational, economic, regulatory, and cyber risks in Web3. By harnessing advanced real-time data analytics along with risk frameworks, operational controls, and financial models, Ledger Works empowers protocols to navigate diverse threats seamlessly through an intuitive dashboard.

The dashboard’s analytics and visualization engine delivers actionable insights, enabling users to make real-time decisions and understand historical and predicted future activities. The platform's proactive approach includes monitoring both client protocols and counterparties, such as price oracles, bridges, and liquidity providers, facilitating early detection of vulnerabilities and threats. Ledger Works operates across multiple blockchains, including Ethereum, Arbitrum, Avalanche, Evmos, Hedera, Kava, Flare, and Arbitrum, with plans to expand to more chains.

To complete its comprehensive service offerings, Ledger Works allows users to predict risk through financial modeling and machine learning algorithms. It provides advanced predictive controls forecasting a range of market conditions such as volatility and liquidity, allowing users to implement strategies to respond to market changes. Specific capabilities include optimizing strategies for configuring clients' protocols to address: fees, debt rebalancing, liquidations, collateral factors, reserve factors, borrow caps, incentives, and more.

The team behind Ledger Works is best-in-class, with decades of experience in investment management, software, and financial engineering. Ledger Works fills a major gap in Web3 risk management, fostering a safer ecosystem and making Web3 more accessible for the everyday person.

About Ledger Works

Ledger Works helps clients focus on growing their Web3 business while they run their Risk Operations. Today more than ever, a client’s success requires effective Risk Management. As their strategic risk partner, Ledger Works protects clients’ business operations and leverages advanced models to help them optimize financial performance. By leveraging real-time computational rules, continuous execution of deterministic and simulation models, and real-time market surveillance, Ledger Works empowers businesses to turn risk into a competitive advantage. For more information, visit: https://www.lworks.io/

About Varys Capital

Varys Capital is a global, multi-strategy digital asset fund and market-maker that invests in and supports early-stage and growth-stage companies building blockchain-enabled businesses. Varys Capital was established in 2018 and is headquartered in Abu Dhabi, UAE and Bangkok, Thailand. Twitter | Linkedin For more information, visit: https://varys.capital