I have been sounding out about the formation of a risk team where I live in Oslo, Norway. The response has been muted. The feedback so far:
- highly interesting, a fresh market opportunity
- presently low activity, not really much to base a 0800-1600 job on.
- one customer, MakerDAO. If you are starting a company that will possibly only have one client you are setting yourself up in a serf position.
- the uncertainties around crypto in general are so high that the risk team deliverables are anything but hard science.
- the activity could be highly sporadic with long periods of low activity between activity peaks when highly valueable collateral types (think energy assets) are onboarded.
- there are in other words a disparity between the expense model which are hours of work put in analysing the collateral class and the reward model which is the class debt ceiling.
Based on the above it is going to be hard to convince anyone to quit their day job and go into collateral evaluation for Makerdao. One thing that could be done is to change the reward model to include a small percentage cut of the stability fee for that asset class. This could potentially make it highly lucrative to form risk teams but this would again require a whole different set of mechanics at MakerDAO’s side, and might not result in increased quality.
Another solution would be to use crowdsourcing within the community to do the risk analysis. Yes - it runs the risk of being a beauty contest, but since the deliverables are so uncertain anyway I feel this might as well be way forward. Simply put the collateral parameters up for a vote and then slug it out in the forum or the chat.