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DeFi Safety Scoring & Risks
Hawksight integrates DeFi yield strategies with security & safety as top priorities. To further mitigate Solana smart contract risks, Hawksight has also conducted internal and external smart contract audits with Sec3 and CertiK.
Please find below the prioritized safety scoring system and risk considerations for DeFi yield strategies integrated with Hawksight. We will be updating our vault page user-interface to reflect each relevant safety scoring for each corresponding yield strategy:
Higher market capitalization assets have lower volatility due to better liquidity. The assets in this vault have higher liquidity, which makes their stable value more reliable.
Single asset yield strategies do not risk impermanent loss (IL) from divergence in asset values like in dual-asset yield strategies.
Assets in this vault are stable assets that are tightly and positively correlated, with low or zero expected divergence causing impermanent loss (IL).
Reputation, track record, and duration of existence are relevant factors when considering DeFi platforms to engage with. This vault integrates a DeFi protocol with a known track record in the Solana ecosystem.
Low-complexity strategies have simpler code that is easier to read and debug. There is a direct correlation between code complexity and strategy risk. Simpler strategies mitigate such risks.
This vault integrates a DeFi protocol with smart contracts reviewed by a trusted auditor. Audits do not fully guarantee that all bugs and exploits will be avoided, however they do help improve code quality and avoid security flaws.
This vault integrates a DeFi protocol with code published and verified on public block explorers.
Bridged assets carry more risk of potential cross-chain bridge exploits that could affect asset values
Last modified 1yr ago