Gro

Gro

Risk Balancer is a module that automatically balances asset portfolios to enable segmentation of smart contract and stablecoin risk. It is the technological innovation that powers the Gro protocol and supports both products.PWRD Stable Coins and Vaults.

Risk Balancer provides the Gro protocol withA systems view of the protocol and stablecoin exposure.Throughout the nested protocol layers (cryptocurrency Lego blocks interacting with each other) and stablecoins (compounding risk through AMM). For more detailed information on Gro Protocol's allocation to various revenue strategies, see our dApp at On the dashboardThe system assignment chart.

Risk Balancer integrates with Gro protocol deposit and withdrawal mechanisms to enable decentralizationrebalancing of the portfolio with user-drivenThis allows the protocol to maintain a balanced exposure autonomously, spreading the risk between the tried and tested stablecoin and the protocol.

Risk balancer is also aRisk Transfer Mechanism. Thanks to a balanced portfolio and the division of assets into several less correlated protocols, risk can be divided into high-risk and low-risk components. Unlike other risk-grading platforms that grade returns, Risk Balancer can also grade long-tail risks, such as stablecoin and smart contract failures. Risk-tolerant users can earn higher returns, while risk-averse users enjoy protection in exchange for sharing profits with their risk-tolerant peers.