LlamaRisk

LlamaRisk is a risk management firm for decentralized finance. It designs risk frameworks, monitors protocol health and recommends the parameters that lending markets use, such as collateral factors and supply and borrow caps.

What is LlamaRisk

LlamaRisk describes its work as designing risk frameworks, monitoring system health and operating verification infrastructure for DeFi protocols. Its site lists Aave, Ethena and Chainlink among the teams it works with, and it sells risk oracles under the LlamaGuard name.

Role at Aave

LlamaRisk is one of the risk service providers that publish assessments on Aave's governance forum before markets launch or change. In June 2026 it posted its support for deploying Aave V4 on Avalanche, with a proposed hub-and-spoke configuration and collateral factors.

The tokenized-stock market on Base

When Aave V4 opened its Equities Hub on Base in September 2026, LlamaRisk recommended the market's initial parameters. CryptoSlate reported collateral factors of 65% to 79% across seven Coinbase stock tokens, with caps on USDC supply and borrowing, and that USDC suppliers opt in to that exposure. In October 2026 Crypto Briefing reported LlamaRisk's proposed guardrails for listing tokenized SpaceX shares, including a 55% collateral factor.

How to describe it

Call LlamaRisk a risk adviser that recommends parameters. Aave governance votes on and sets them. Attribute specific caps and factors to the source that reported them.