UNION Partners with Prometeus to Tap Into Stoa’s Decentralized Data Marketplace
Assigning risk scores to DeFi is a new frontier born out of the pressing demand for managing a multitude of unique risks on composable, blockchain-based financial applications.
At UNION, we gather a wide source of project-level metrics to generate proprietary risk scores for DeFi platforms beyond market-priced risks. This means commingling metrics like systemic risk vulnerability, TVL exposures, transparency, code reviews, hypothetical outcome-based analysis of exogenous events, and “alternative” data such as Prosper’s Cross-Chain prediction platform.
The resulting risk scores play an important role in UNION’s risk and pricing models and our CDO evaluation services. Furthermore, we believe that such datasets should not just benefit UNION, but also function as another important lego block that benefits the entire DeFi ecosystem.
That’s why utilizing a data marketplace to sell and secure risk scores of projects and to originate our proprietary risk/pricing widgets is so powerful. Enter Stoa — a decentralized framework for data monetization by Prometeus.
“The need to monetize and purchase data is the same regardless of which industry businesses operate in. As blockchains move firmly into proven commercial products, Prometeus’ Stoa provides an out-of-box solution for data-mart management, allowing UNION to focus on calculating DeFi risk scores.” — John Liu, CPO of UNION.
By using Stoa, UNION can sell risk scores and specific risk parameters as time series. Applied to UNION’s proprietary widgets, Stoa can also be used to store source code and even as a secure, decentralized venue to upload generic pricing and risk templates for other projects and institutions to build on.
For example, UNION’s proprietary risk analysis of a CDO’s junior tranche that relies on a specific ratio of a money market’s LP token cash flows can be wielded as a format for an institution looking to build a similar tranched product for a different money market. As a result, barriers to constructing complex derivatives within DeFi are significantly diminished for entities more familiar with TradFi.
Firms like Gauntlet, which are already providing DeFi with piercing quantitative risk models (e.g., agent-based simulation) for major DeFi platforms like Compound, can also benefit from the data and analysis UNION is generating.
Stoa serves as the competitive, transparent, and private marketplace for such data.
“Placements of Union Risk Scores on Stoa data marketplace, will open a gate of DeFi application for the institutional/large private investors. That will attract more attention to the marketplace and the DeFi landscape in general. By buying the risk scores provided by Unionon on the Stoa marketplace, large private investors can make their decision about investing in one or another project.” — Vladislavs Semjonovs, CBDO of Prometeus Labs
We look forward to exploring further synergies with Prometeus about how Prosper, Stoa and all future products built on Prometeus can create a richer and inclusive DeFi ecosystem. As we build out our CDO evaluation service, expect more details to crystallize about forming the basis for scalable and competitive risk pricing for structured risk and asset protection instruments in DeFi.
About Prometeus protocol
Prometeus is a secure and decentralized protocol that allows fully trustless and anonymous data exchange and storage. Prometeus is layer two, so it can be implemented by the majority of existing blockchains.
Our primary goal is to utilize the public blockchain to achieve a decentralized, trustless, and censorship-resistant framework for exchange/share data across various fields and implementations. Our current implementations include data trading/sharing marketplace and firewall resistant social media solutions.
About UNION
UNION is a technology platform that combines bundled protection and a liquid secondary market with a multi-token model. DeFi participants manage their multi-layer risks across smart contracts and protocols in one scalable system. UNION decreases the entry barriers for retail users and lays the foundation for institutional investors. UNION’s full-stack DeFi protection is inclusive, composable, and brings battle-tested capital and pricing models from TradFi to the DeFi ecosystem.
Website: https://www.unn.finance/
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