Dependency Risk Mapping

Dependency risk mapping is the systematic identification and analysis of all external protocols, oracles, and assets that a specific derivative platform relies upon for operation. By visualizing these connections, developers and risk managers can identify single points of failure and evaluate the impact of a breach in any dependency.

This process is crucial for protocols that use external price feeds or rely on other lending platforms for liquidity. As the crypto ecosystem becomes more interconnected, the complexity of these maps increases significantly.

A failure to accurately map dependencies can lead to unforeseen systemic consequences during a market event. It is a foundational practice for robust protocol design and security auditing.