Risk Management
What is it
The Comptroller is the risk management layer of the MachFi protocol; it determines how much collateral a user is required to maintain, and whether (and by how much) a user can be liquidated. Each time a user interacts with a ibToken, the Comptroller is asked to approve or deny the transaction.
The Comptroller maps user balances to prices (via the Price Oracle) to risk weights (called Collateral Factors) to make its determinations. Users explicitly list which assets they would like included in their risk scoring, by calling Enter Markets and Exit Market.
Oracle
MachFi leverages both API3 & Pyth as oracle providers, ensuring accurate and reliable price feeds for secure and efficient protocol operations.
API3
API3 serves as the oracle for blue chip assets for MachFi due to the following key advantages:
Push-Based Oracle Design - API3 delivers price data through a push mechanism, minimizing latency and enabling real-time updates without requiring external triggers.
Decentralized and Reliable Service - API3's decentralized infrastructure reduces single points of failure, providing high reliability and data integrity.
Pyth
Pyth acts as a complementary oracle to API3 for assets not covered by API3 or in scenarios where API3 provides invalid or stale price feeds:
Pull-Based Oracle Design - Pyth fetches prices on-demand, ensuring that data is pulled directly from the source when required.
High Availability Through Keeper Bots - MachFi employs a network of high-availability keeper bots that consistently refresh Pyth prices to keep data up-to-date and responsive to market conditions.
Industry Proven Solution - Pyth is widely adopted in the DeFi ecosystem and secures billions of dollars in assets across top protocols, establishing it as a trustworthy backup.
General
In general the use of DeFi applications can lead to loss of funds due to either malicious developers or unforeseen vulnerabilities in a given protocol, users should conduct their own research before depositing funds into a given DeFi application.
Maximum Utilization Risk
In heavy utilization, funds may temporarily be unable to withdraw until the utilization rate decreases.
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