Tulu Finance

Inspiration

We want to solve the canonical problem of moral hazard in asset management and banking. We believe that the merits a decentralized risk assessment system brings not only lie in the ethos it presents, but also in its practical value as well; namely, it aggregates more information into the system, and better incentive alignments allow more thorough underwriting practices.

What it does

It's a system that crowdsources, evaluates and packages the best yield-generating instruments in DeFi with no governance nor exogenous supervision, through utilizing our new decentralized risk underwriting mechanism. We can then apply it to any arbitrary risk-definable instruments such as unsecured debts and yield-bearing strategies.

How we built it

Thinking a lot about how to design a system that best aligns incentives and rewards well-behaving agents, while contemplating potential attack vectors a new experimental approach like ours can present. As for the actual code, we use the Augur protocol as a base for our frontend.

Challenges we ran into

We are working on a problem with a very wide design spectrum, and many of the components are very open to research. Most of the challenges were thus idea-centric.