DeFi stress test: ETH daily volatility is less than 20%, compound contract default risk is low

According to The Block, according to the simulated stress test performed by the blockchain simulation platform Gauntlet on the DeFi lending agreement Compound, the agreement can support the total borrowing value to increase 10 times, even if ETH is at its highest historical volatility (20%). The default rate is controlled below 1%. It is reported that the highest period of ETH volatility in history was in August 2017, when its daily volatility reached a maximum of about 20%. When the daily volatility of ETH is 20%, the total outstanding debt is greater than or equal to 100 million US dollars. At the end of the simulation run, some high-risk borrowing positions will not be fully liquidated.