Vesu STRK-Re7xSTRK Risk Report

Summary

The Vesu STRK-Re7xSTRK market represents STRK deposits in Re7 Lab's "Re7 xSTRK" pool.

The pool enables STRK and xSTRK, Endur's STRK LST, assets and uses Vesu's official factory extension with Pragma price feeds.

The market's overall risk rating is 🟨 Medium.

Datapoints

• CoinGecko
• Voyager

Pool Risk

The "Re7 xSTRK" pool is curated by Re7 Labs, a professional risk curator with extensive experience and a long track record on other lending protocols.

The pool uses Vesu's audited factory extension which uses a robust Pragma feed and Vesu's public liquidation model.

Re7 Labs has the permission to pause the pool in an emergency situation and update various parameters including debt caps and liquidation loan-to-value retios.

Given Re7 Labs' extensive risk curation experience and their operational setup, including a multisig and real-time monitoring with Hypernative, the pool risk is deemed low.

Datapoints

• Re7 Labs
• Extension Docs
• Audit Reports
• Source Code

Rating

The proposed rating is:

• 🟩 Low

Asset Risk

warning

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 STRK reflects Ethereum mainnet STRK 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 STRK uses OpenZeppelin's standard ERC20 token implementation. It has been audited by Nethermind and both source code and audit report are publicly available.

warning

The StarkGate STRK contract is not verified on block explorers.

Counterparty risk

N/A

Depeg risk

N/A

Datapoints

• Token Contract
• Mainnet Escrow Contract
• StarkGate GitHub
• StarkGate Audit
• StarkGate Stats

Rating

The proposed rating is:

• 🟩 Low

Oracle Risk

The pool uses Pragma's STRK/USD 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.

Oracle fail-safes

N/A

Re7 Labs actively monitors the pool and oracle feeds and in case of an emergency pauses deposits and withdrawals.

Datapoints

• Pragma Oracle Contract
• Pragma Documentation
• Pragma Pair IDs
• Source Code
• Audit Report

Rating

The proposed rating is:

• 🟩 Low

Market Risk

STRK deposits can be borrowed with xSTRK as collateral.

However, the pool uses Pragma's STRK/USD price feed to price the xSTRK collateral. Liquidations can thus only be triggered by interest accruals exceeding the lending pair's liquidation loan-to-value ratio.

Market risk, the risk from bad debt incurred by failed liquidations, can thus be neglected. Instead, the main risk arises from xSTRK depegs.

The proposed rating is:

• 🟩 Low

Collateral Risk

The pool enables borrowing of STRK with xSTRK collateral. The vSTRK-Re7xSTRK market thus inherits xSTRK's asset risk.

The proposed rating is:

• 🟨 Medium