Genesis Pool-ETH Risk Report
Summary
StarkGate Ether (ETH) is the bridged version of Ether (ETH) on Starknet using the StarkGate bridge.
StarkGate is the canonical bridging protocol of Starknet developed and maintained by StarkWare, the creator of Starknet.
ETH has an MCAP of over USD 400bn and TVL on Starknet of over USD 200m.
Datapoints
Pool Risk
This pool uses the factory extension that was audited by ChainSecurity together with the Vesu protocol.
The extension implements a robust liquidation model, adaptive interest rates and various fail-safes intended to protect user's assets in various stress scenarios.
The extension currently allows the pool owner to update various pool configuration without giving it control over user's assets. These permissions are planned to be revoked once the pool has stabilized.
Datapoints
Rating
The proposed rating is:
- 🟩 Low
Asset Risk
This report does not assess the risks associated with bridging assets to Starknet using StarkGate. Make sure you understand the risks involved with bridging assets to Starknet before continuing.
StarkGate ETH reflects Ethereum mainnet ETH that is bridged to Starknet using the StarkGate bridge. StarkGate is Starknet's canonical bridge and is developed and maintained by StarkWare, the creator of Starknet. The bridge is operational since early 2022 and has facilitated over 1.9M bridge transactions or over USD 1.7bn in value bridged.
Smart contract risk
StarkGate ETH uses OpenZeppelin's standard ERC20 token implementation. It has been audited by Nethermind and both source code and audit report are publicly available.
The StarkGate ETH contract is not verified on block explorers.
Counterparty risk
N/A
Depeg risk
N/A
Datapoints
Rating
The proposed rating is:
- 🟩 Low
Oracle Risk
The asset's oracle implementation relies on a Pragma price feed. The Pragma oracle is a native Starknet oracle system that secures over 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. The oracle price is rejected, and the pool paused, if the applicable distinct price sources is less than four.
Oracle fail-safes
Pragma price feed liveness is ensured by rejecting an oracle price if the most recent data point, among all Pragma providers, is older than four hours. If an oracle price is rejected, the pool is paused preventing the withdrawal of funds.
Datapoints
Rating
The proposed rating is:
- 🟩 Low
Market Risk
The lending pool enables borrowing of StarkGate ETH deposits using any of the other pool assets as collateral. The pool extension implements a robust liquidation strategy that optimizes for rapid liquidations also in a stressed market environment. Nonetheless, a residual risk for bad debt from failed liquidations exists. In such a scenario, accrued bad debt is instantaneously allocated to the lenders in the pool.
The asset's market risk is computed using the Standard Market Risk Model.
Datapoints
Rating
The proposed rating is:
- 🟩 Low
Collateral Risk
The pool enables asset Rehypothecation which means that borrowers' collateral assets too serve as liquidity in the pool. The collateral chain thus spans across all pool assets resulting in that StarkGate ETH inherits the highest severity risk among all these assets.
The proposed rating is:
- 🟩 Low