EPFL BSA Hackathon • Belem Capital DeFi Risk Prize

DeFi Risk Dependency Matrix 🛡️

Multi-layer on-chain dependency graph, cascading shock propagation simulator, and mathematical Stay-vs-Exit decision engine for institutional DeFi portfolios.

GitHub Repository Belem Capital $2,100 Challenge
Evaluated Position
Pendle PT-stETH / Aave v3
Position Value / Debt
$500k / $350k
Simulated Health Factor
1.35
Immediate Exit Cost
$5,350 USD
⚡ Stress-Test Controls
LST / Collateral Depeg 0.0%
AMM Liquidity Drain 0%
Oracle Staleness Delay 0 Hours
Exit Cost Components ($5,350):
• Slippage: $4,200 (0.84%)
• Unwind Yield Penalty: $1,000
• L1 Execution Gas: $150
🏗️ 5-Layer Dependency Graph Status Real-Time Cascade Map
Layer 1: Settlement & Consensus
Ethereum L1 Execution & Finality
HEALTHY
Layer 2: Underlying Yield Protocol
Lido stETH Validator Basket & Rewards
HEALTHY
Layer 3: Oracle Verification
Chainlink stETH/ETH Feed & Staleness Guard
HEALTHY
Layer 4: Liquidity Venues
Curve stETH/ETH & Pendle AMM Depth
HEALTHY
Layer 5: Lending & Leverage Engine
Aave v3 Collateral & Liquidation Contract
HEALTHY
HOLD & MONITOR Net Decision Alpha: -$5,350 USD

Baseline state: Exit costs ($5,350) exceed simulated loss. Position health factor is robust (1.35 >= 1.20). Exiting now would cause unnecessary slippage drag.