Vesu xSTRK-Re7xSTRK Risk Report
Summary
The Vesu xSTRK-Re7xSTRK market represents xSTRK 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
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
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 15M STRK is staked with Endur making it one of the biggest STRK staker.
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 thin 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 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
Rating
The proposed rating is:
- 🟩 Low
Market Risk
STRK 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