Vesu xSTRK Alterscope xSTRK Risk Report
Summary
The Vesu xSTRK Alterscope xSTRK market represents xSTRK deposits in Alterscope's "Alterscope xSTRK" pool.
The pool enables xSTRK as collateral asset to borrow a variety of loan assets including ETH, WBTC, STRK, USDC, USDT. It uses Vesu's official factory extension with Pragma price feeds.
It uses Vesu's official factory extension with Pragma price feeds.
The market's overall risk rating is 🟨 Medium.
Datapoints
Pool Risk
The Alterscope xSTRK pool is curated by Alterscope, a professional risk curator currently operating vaults on Euler and offering autonomous risk agents across various chains and platforms.
The pool uses Vesu's audited factory extension which leverages a robust Pragma feed and Vesu's public liquidation model.
Alterscope has the permission to pause the pool in an emergency situation and update various parameters including debt caps and liquidation loan-to-value ratios.
Given Alterscope's expertise in assessing, monitoring and managing DeFi risks and their operational setup, including a multisig owning the pool permissions, the pool risk is deemed low.
Datapoints
Rating
The proposed rating is:
- 🟩 Low
Asset Risk
Endur's xSTRK is a STRK liquid staking token (LST) and was launched in November 2024 by the teams behind Karnot and STRKFarm.
At the time of writing this report, almost 35M STRK is staked with Endur making it the largest STRK staker and dominant STRK LST protocol.
Because of its recent launch only limited information and historical data points exist for xSTRK.
Smart contract risk
The xSTRK codebase has been audited and both the codebase and audit report shared with and reviewed by the Starknet Foundation.
The xSTRK codebase and audit reports are not publicly available.
The xSTRK contract is not verified on block explorers.
Counterparty risk
As a STRK LST, xSTRK gives the holder a claim on the underlying STRK assets. These assets are managed by Endur's staking infrastructure.
As the operator of this infrastructure, the Endur team plays a critical role in the safeguarding of these assets and is thus considered an important counterparty to anyone holding or integrating with xSTRK.
The Endur team has proven experience of operating blockchain and DeFi infrastructure as well as a good reputation within the Starknet ecosystem. The counterparty risk is thus limited.
Depeg risk
xSTRK trades on the Ekubo DEX and its price is expected to be pegged to the price of STRK itself.
Given that the asset was only launched in November 2024 and still has limited liquidity on Ekubo, temporary depeg events are expected.
A permanent depeg event could be caused by a loss or theft of the LST's underlying staked STRK balance. However, this risk is limited given the findings in the previous sections.
Datapoints
Rating
The proposed rating is:
- 🟨 Medium
Oracle Risk
The pool uses Pragma's xSTRK/USD price feed.
The Pragma oracle is a native Starknet oracle system that secured up to USD 200m across all major projects on Starknet. It is fully decentralized in that it does not rely on off-chain infrastructure. Instead, data providers directly push prices on-chain and aggregation is done by the data consumer directly.
Smart contract risk
Find an overview of the Pragma smart contract system here.
The Pragma smart contracts have been audited by Nethermind and both the source code and audit report are publicly available.
Price composition & source diversity
The oracle price is computed as the Median over the most recent data points available for the various Pragma providers.
Since xSTRK is only traded on the Ekubo DEX on Starknet, all providers ultimately rely on the same price source.
Furthermore, given its limited liquidity, the Spot oracle feed does offer sub-optimal economic guarantees against price manipulation attacks.
Oracle fail-safes
No autonomous oracle fail-safes and fallbacks are configured. Alterscope monitors and pauses pools manually in case of an emergency.
Datapoints
Rating
The proposed rating is:
- 🟨 Medium
Market Risk
xSTRK deposits in this pool are isolated from borrowing removing market risk for lenders.
Rating
The proposed rating is:
- 🟩 Low
Collateral Risk
The pool does not enable asset rehypothecation.
The proposed rating is:
- 🟩 Low