{"type": "project", "title": "QX DeFi Risks Compass", "logoImg": "bafkreih6wchurz5qz2srzxgr3gkffu2ycb5hgpilor7n447eerdzjtfhrm", "website": "https://qualitax.gitbook.io/qx-defi-risks-101/", "bannerImg": "bafkreihtwza4z4eb5kz66e3sggmremai5c4ppcoxgsabagub2fwyrljmsm", "createdAt": 1713358157878, "userGithub": "anaisofranc", "credentials": {}, "description": "**QX DeFi Risks Compass, is an open-source project aimed at providing a comprehensive understanding of the risks associated with Decentralized Finance (DeFi). The project's primary goal is to create accessible and informative resources about DeFi risks and protocol due diligence that serve as a guide for stakeholders - including regulators, market participants, and other stakeholders in the DeFi ecosystem.**\n\n\n**Goals:**\n\n- Provide a comprehensive, open-source resource that covers the most significant risks associated with DeFi. Provide a clear and accessible explanation of each risk category, making it easier for stakeholders to understand DeFi risks in a holistic way.\n- Develop an open source due diligence framework based on Enterprise Ethereum Alliance (EEA) DeFi Risks Assessment guidelines to help support best practices to assessing DeFi protocols.\n- Demonstrate the application of the due diligence framework through a real-world example by analysing the Uniswap protocol in the context of the Abitrum ecosystem.\n\n\n**Deliverables**\n\n- Completed Gitbook Resource: https://qualitax.gitbook.io/qx-defi-risks-101/ \n- Gitbook version and standalone PDF Version of the due diligence framework.\n- Standalone PDF version of the Uniswap due diligence analysis.\n\n\n**Collaboration**\n\nQualitaX will collaborate with the Enterprise Ethereum Alliance (EEA) - DeFi Risk Assessment, Management and Accounting (DRAMA) WG on this project, together with Chaals Nevile, Director of Technical Programs at the EEA , Jerome Ostorero - Director of Research & Risk, Coinchange Financials (and co-chair of the DRAMA WG)  and Pratik Wagh -  Head of Research (and member of the DRAMA WG). \n\n**Work done to date**\n\n-  QualitaX has started working on the QX DeFi Risks Compass Gitbook here: https://qualitax.gitbook.io/qx-defi-risks-101/\n- The DRAMA WG has produced the EEA DeFi Risk Assessment Guidelines available here: https://entethalliance.org/specs/drafts/defi-risks/20231116/\n-  QualitaX has hosted a webinar with the EEA and Coinchange Financials here: https://www.youtube.com/watch?v=xNt8UMN5rho. Webinar registrants and attendees from the UK Financial Conduct Authority, State Street, S&P Global, SwissAssetDAO, Ethereum Foundation, Shell.\n\n\n**Requested Grant Size**\n\nUSD$41,825 - Around 37,340 ARB at the time of writing.\n\n**How will you use these funds? Please make a detailed plan for expenditures.**\n\nAll funds will be allocated to the core team members delivering the project.\n\n- Deliverable: Completion of the DeFi Risks Compass Gitbook resource\nHours: 40\nBlended hourly rate (USD): 175\nTotal: $7,000\nPercentage budget:~ 18%\n\n- Deliverable:  Framework Development (including review by the EEA DRAMA WG + report writing)\nItem: 100\nHours: 175\nBlended hourly rate (USD): $17,500\nTotal: $17,500\nPercentage budget: ~45%\n\n- Deliverable:  Uniswap Due Diligence (including review by the EEA DRAMA WG + report writing)\nHours: 75\nBlended hourly rate (USD): 175\nTotal: $13,125\nPercentage budget: ~31.5%\n\n- Deliverable:  Reports finalization, Proofreading & Production\nHours: 24\nBlended hourly rate (USD): 175\nTotal: $4,200\nPercentage budget: ~1%\n\n\n**Which RFP is this project covering?**\n\nOpen Contribution\n\n**How do you think this project fits in with Uniswap?**\n\nThe project is using Uniswap as a real-world example for demonstrating the application of the due diligence framework which ensures direct relevance to the Uniswap ecosystem. \nThe Uniswap due diligence analysis aims to be a resource for Uniswap\u2019 stakeholders to support and increase their understanding of risks and to better inform their usage and interactions with the protocol. This increased understanding can lead to more informed decision-making and a stronger, more resilient Uniswap community. \n\n**What benefits will this project bring to Uniswap in the Arbitrum ecosystem?**\n\nThis project directly contributes to advancing the safety, reliability, and robustness of projects built within the Uniswap-Arbitrum ecosystem. It could help support greater adoption and investment in Uniswap in the Arbitrum ecosystem and could help increase stakeholders\u2019 confidence by demonstrating leadership in a \u201cmature DeFi\u201d space: The project aims to produce comprehensive deliverables that will be resources supporting the UAGP's goal of fostering growth and advancing projects that build exclusively within the Uniswap-Arbitrum ecosystem. By promoting DeFi protocolsl due diligence best practices, the project can contribute to the long-term growth and sustainability of a healthy Uniswap-Arbitrum ecosystem. \n\n\n**Potential Wider Impacts:**\n\n\n- Risk Management: Increased awareness and understanding of DeFi risks among regulators and market participants, enabling them to make more informed decisions and/or manage their due diligence more effectively.\n-  Best Practices: Supporting standardization of DeFi protocols due diligence best practices within the DeFi industry, promoting transparency and accountability. Specifically, feedback from our work will be provided to enhance the industry standard EEA Defi Risk Guidelines.\n-  Market Confidence & Adoption: By demystifying DeFi risks and promoting transparency, the project can help build greater confidence among market participants, potentially leading to increased adoption and growth of DeFi platforms.\n-  Community Engagement and Evolution: The open-source nature of the project and the collaboration with the Enterprise Ethereum Alliance (EEA) encourage continuous community engagement, allowing for the resource to evolve in tandem with DeFi developments and ensuring its long-term relevance and utility.\n\n**Is this project open-source? (If yes, share the repository link).**\n\nYes. Links:  \n- QX DeFi Risks Compass Gitbook: https://qualitax.gitbook.io/qx-defi-risks-101/ \n- EEA DeFi Risk Assessment Guidelines Draft: https://entethalliance.org/specs/drafts/defi-risks/20231116/\n\nThe project will live in the QX DeFi Risks Compass GitBook and will be refered to in the work of the EEA DRAMA WGs.\n\n**Who are the members of the team?**\n\n- (core) Technical Project Lead: Anais Ofranc - Founder, QualitaX:  https://www.linkedin.com/in/anaisofranc/\n-  (core) Research & Risk Lead - Jerome Ostorero - Director of Research & Risk, Coinchange Financials: https://www.linkedin.com/in/jerome-ostorero-20xx/ \n-  (core) Research & Risk Analyst -  Pratik Wagh -  Head of Research, , Coinchange Financials: https://www.linkedin.com/in/itspratikwagh/ \n-  (core) Coordination and Review Lead: Chaals Nevile  - Director of Technical Programs, EEA : https://www.linkedin.com/in/chaals/\n-  (core) Analyst: Bradley Stone - Research Lead, QualitaX: https://www.linkedin.com/in/stonebradley/ \n-  (additional) Subject Matter Experts -  Volunteer contributors from the EEA DRAMA WG. Contributors to the EEA DRAMA WG include experts from Consensys, Hacken, OpenZeppelin, DTCC, EY, Bitwave, Noves, Cube3.ai, DeFi Safety and more.\n\nPlease note that team members will not be working full-time on this project for the length of this duration. \n\n\n**What are the Project Milestones? (Be very specific and write a roadmap highlighting critical deliverables of the project; mention how you will ensure to supervise and track them).**\n\nThe project team will use Github to manage this project to ensure that we supervise and track delivery efficiently.\n\n- Milestone 1 - \nItem: Completion of the DeFi Risks Compass Gitbook resource\nDuration: 2 weeks\n \n- Milestone 2:\nItem: Framework Development (+ draft report)\nDuration: 5 weeks (includes time allocated for review and updates with EEA Drama WG)\n\n- Milestone 3: \nItem: Uniswap Due Diligence (+ draft report)\nDuration: 5 weeks (includes time allocated for review and updates with EEA Drama WG)\n\n- Milestone 4: \nItem: Final Reports Writing/Proofreading & PDF Production \nDuration: 2 weeks\n\n**How do you plan to reach these milestones? (Explain the project feasibility).**\n\nWe plan to achieve these milestone by collaborating with The EEA DRAMA Working Group which consists of experienced professionals who have developed proprietary frameworks within their organizations and have hands-on experience assessing DeFi protocols.\n\nBy engaging with the working group members, the project will:\n\n- Gather feedback: The project team will seek input from the working group members on the structure, content of the deliverables. This feedback will help ensure that the resource is comprehensive, accessible, and relevant to the needs of stakeholders.\n- Identify key requirements: Collaboration with the working group will help identify the specific requirements that stakeholders have when first performing due diligence of DeFi protocols . This information will be used to refine the due diligence framework, ensuring that it covers all essential aspects.\n- Leverage expertise: The working group members' extensive experience in developing proprietary frameworks and assessing DeFi protocols will be invaluable to the project. Their expertise will help support the development of the due diligence framework, ensuring that it incorporates industry best practices and reflects the real-world challenges faced by enterprises and other stakeholders.</li>\n- Validate the framework: The project team will work with the working group members to validate the due diligence framework, ensuring that it is fit for purpose and can be effectively applied to real-world scenarios. This validation process will involve testing the framework against the Uniswap protocol and incorporating feedback from the working group.", "logoImgData": {}, "bannerImgData": {}, "projectGithub": "qualitax"}
QX DeFi Risks Compass
**QX DeFi Risks Compass, is an open-source project aimed at providing a comprehensive understanding of the risks associated with Decentralized Finance (DeFi). The project's primary goal is to create accessible and informative resources about DeFi risks and protocol due diligence that serve as a guide for stakeholders - including regulators, market participants, and other stakeholders in the DeFi ecosystem.**


**Goals:**

- Provide a comprehensive, open-source resource that covers the most significant risks associated with DeFi. Provide a clear and accessible explanation of each risk category, making it easier for stakeholders to understand DeFi risks in a holistic way.
- Develop an open source due diligence framework based on Enterprise Ethereum Alliance (EEA) DeFi Risks Assessment guidelines to help support best practices to assessing DeFi protocols.
- Demonstrate the application of the due diligence framework through a real-world example by analysing the Uniswap protocol in the context of the Abitrum ecosystem.


**Deliverables**

- Completed Gitbook Resource: https://qualitax.gitbook.io/qx-defi-risks-101/ 
- Gitbook version and standalone PDF Version of the due diligence framework.
- Standalone PDF version of the Uniswap due diligence analysis.


**Collaboration**

QualitaX will collaborate with the Enterprise Ethereum Alliance (EEA) - DeFi Risk Assessment, Management and Accounting (DRAMA) WG on this project, together with Chaals Nevile, Director of Technical Programs at the EEA , Jerome Ostorero - Director of Research & Risk, Coinchange Financials (and co-chair of the DRAMA WG)  and Pratik Wagh -  Head of Research (and member of the DRAMA WG). 

**Work done to date**

-  QualitaX has started working on the QX DeFi Risks Compass Gitbook here: https://qualitax.gitbook.io/qx-defi-risks-101/
- The DRAMA WG has produced the EEA DeFi Risk Assessment Guidelines available here: https://entethalliance.org/specs/drafts/defi-risks/20231116/
-  QualitaX has hosted a webinar with the EEA and Coinchange Financials here: https://www.youtube.com/watch?v=xNt8UMN5rho. Webinar registrants and attendees from the UK Financial Conduct Authority, State Street, S&P Global, SwissAssetDAO, Ethereum Foundation, Shell.


**Requested Grant Size**

USD$41,825 - Around 37,340 ARB at the time of writing.

**How will you use these funds? Please make a detailed plan for expenditures.**

All funds will be allocated to the core team members delivering the project.

- Deliverable: Completion of the DeFi Risks Compass Gitbook resource
Hours: 40
Blended hourly rate (USD): 175
Total: $7,000
Percentage budget:~ 18%

- Deliverable:  Framework Development (including review by the EEA DRAMA WG + report writing)
Item: 100
Hours: 175
Blended hourly rate (USD): $17,500
Total: $17,500
Percentage budget: ~45%

- Deliverable:  Uniswap Due Diligence (including review by the EEA DRAMA WG + report writing)
Hours: 75
Blended hourly rate (USD): 175
Total: $13,125
Percentage budget: ~31.5%

- Deliverable:  Reports finalization, Proofreading & Production
Hours: 24
Blended hourly rate (USD): 175
Total: $4,200
Percentage budget: ~1%


**Which RFP is this project covering?**

Open Contribution

**How do you think this project fits in with Uniswap?**

The project is using Uniswap as a real-world example for demonstrating the application of the due diligence framework which ensures direct relevance to the Uniswap ecosystem. 
The Uniswap due diligence analysis aims to be a resource for Uniswap’ stakeholders to support and increase their understanding of risks and to better inform their usage and interactions with the protocol. This increased understanding can lead to more informed decision-making and a stronger, more resilient Uniswap community. 

**What benefits will this project bring to Uniswap in the Arbitrum ecosystem?**

This project directly contributes to advancing the safety, reliability, and robustness of projects built within the Uniswap-Arbitrum ecosystem. It could help support greater adoption and investment in Uniswap in the Arbitrum ecosystem and could help increase stakeholders’ confidence by demonstrating leadership in a “mature DeFi” space: The project aims to produce comprehensive deliverables that will be resources supporting the UAGP's goal of fostering growth and advancing projects that build exclusively within the Uniswap-Arbitrum ecosystem. By promoting DeFi protocolsl due diligence best practices, the project can contribute to the long-term growth and sustainability of a healthy Uniswap-Arbitrum ecosystem. 


**Potential Wider Impacts:**


- Risk Management: Increased awareness and understanding of DeFi risks among regulators and market participants, enabling them to make more informed decisions and/or manage their due diligence more effectively.
-  Best Practices: Supporting standardization of DeFi protocols due diligence best practices within the DeFi industry, promoting transparency and accountability. Specifically, feedback from our work will be provided to enhance the industry standard EEA Defi Risk Guidelines.
-  Market Confidence & Adoption: By demystifying DeFi risks and promoting transparency, the project can help build greater confidence among market participants, potentially leading to increased adoption and growth of DeFi platforms.
-  Community Engagement and Evolution: The open-source nature of the project and the collaboration with the Enterprise Ethereum Alliance (EEA) encourage continuous community engagement, allowing for the resource to evolve in tandem with DeFi developments and ensuring its long-term relevance and utility.

**Is this project open-source? (If yes, share the repository link).**

Yes. Links:  
- QX DeFi Risks Compass Gitbook: https://qualitax.gitbook.io/qx-defi-risks-101/ 
- EEA DeFi Risk Assessment Guidelines Draft: https://entethalliance.org/specs/drafts/defi-risks/20231116/

The project will live in the QX DeFi Risks Compass GitBook and will be refered to in the work of the EEA DRAMA WGs.

**Who are the members of the team?**

- (core) Technical Project Lead: Anais Ofranc - Founder, QualitaX:  https://www.linkedin.com/in/anaisofranc/
-  (core) Research & Risk Lead - Jerome Ostorero - Director of Research & Risk, Coinchange Financials: https://www.linkedin.com/in/jerome-ostorero-20xx/ 
-  (core) Research & Risk Analyst -  Pratik Wagh -  Head of Research, , Coinchange Financials: https://www.linkedin.com/in/itspratikwagh/ 
-  (core) Coordination and Review Lead: Chaals Nevile  - Director of Technical Programs, EEA : https://www.linkedin.com/in/chaals/
-  (core) Analyst: Bradley Stone - Research Lead, QualitaX: https://www.linkedin.com/in/stonebradley/ 
-  (additional) Subject Matter Experts -  Volunteer contributors from the EEA DRAMA WG. Contributors to the EEA DRAMA WG include experts from Consensys, Hacken, OpenZeppelin, DTCC, EY, Bitwave, Noves, Cube3.ai, DeFi Safety and more.

Please note that team members will not be working full-time on this project for the length of this duration. 


**What are the Project Milestones? (Be very specific and write a roadmap highlighting critical deliverables of the project; mention how you will ensure to supervise and track them).**

The project team will use Github to manage this project to ensure that we supervise and track delivery efficiently.

- Milestone 1 - 
Item: Completion of the DeFi Risks Compass Gitbook resource
Duration: 2 weeks
 
- Milestone 2:
Item: Framework Development (+ draft report)
Duration: 5 weeks (includes time allocated for review and updates with EEA Drama WG)

- Milestone 3: 
Item: Uniswap Due Diligence (+ draft report)
Duration: 5 weeks (includes time allocated for review and updates with EEA Drama WG)

- Milestone 4: 
Item: Final Reports Writing/Proofreading & PDF Production 
Duration: 2 weeks

**How do you plan to reach these milestones? (Explain the project feasibility).**

We plan to achieve these milestone by collaborating with The EEA DRAMA Working Group which consists of experienced professionals who have developed proprietary frameworks within their organizations and have hands-on experience assessing DeFi protocols.

By engaging with the working group members, the project will:

- Gather feedback: The project team will seek input from the working group members on the structure, content of the deliverables. This feedback will help ensure that the resource is comprehensive, accessible, and relevant to the needs of stakeholders.
- Identify key requirements: Collaboration with the working group will help identify the specific requirements that stakeholders have when first performing due diligence of DeFi protocols . This information will be used to refine the due diligence framework, ensuring that it covers all essential aspects.
- Leverage expertise: The working group members' extensive experience in developing proprietary frameworks and assessing DeFi protocols will be invaluable to the project. Their expertise will help support the development of the due diligence framework, ensuring that it incorporates industry best practices and reflects the real-world challenges faced by enterprises and other stakeholders.</li>
- Validate the framework: The project team will work with the working group members to validate the due diligence framework, ensuring that it is fit for purpose and can be effectively applied to real-world scenarios. This validation process will involve testing the framework against the Uniswap protocol and incorporating feedback from the working group.
QX DeFi Risks Compass