Vesu DOG CarmineDAO Runes Risk Report
Summary
The Vesu DOG CarmineDAO Runes market represents DOG deposits in Carmine DAO's CarmineDAO Runes pool.
The pool enables various Starknet assets to be borrowed and used as collateral.
It uses Vesu's official factory extension with Pragma price feeds.
The market's overall risk rating is 🟩 Medium.
Datapoints
Pool Risk
The CarmineDAO Runes pool is curated by CarmineDAO, a DAO focused on providing tools to monitor and manage risks in DeFi. DAO whose members work and worked on projects like DeRisk.
The pool uses Vesu's audited factory extension which leverages a robust Pragma feed and Vesu's public liquidation model.
CarmineDAO 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 CarmineDAO's and its members expertise in assessing, monitoring and managing DeFi risks including managing and monitoring liquidity in the market and a multisig owning the pool permissions, the pool risk is deemed low.
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 DOG reflects Bitcoin's DOG 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 DOG 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 DOG 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 pool uses Pragma's DOG/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. The volume behind the data feed concentrates (at the time of publishing this report) mostly in the gate.io, denominated in USDT.
Oracle fail-safes
Autonomous oracle fail-safe and fallback was configured with a 0.2hours timeout, 2 data sources required, recovery and subscription periods being set to 1 month and "Pool pause loan-to-value" set as 100%. CarmineDAO monitors and can pause pools manually in case of an emergency.
Datapoints
- Pragma Oracle Contract
- Pragma Documentation
- Pragma Pair IDs
- Pragma Providers for DOG
- Source Code
- Audit Report
Rating
The proposed rating is:
- 🟩 Low
Market Risk
DOG deposits can be borrowed with all pool assets as collateral.
The pool enforces debt caps and liquidation discounts reflecting the on-chain liquidity available for liquidations.
Liquidations, as per the used official factory extension (see Section Pool Risk), are public and prioritize rapid liquidations.
The resulting market risk is computed using the Standard Market Risk Model.
Datapoints
Rating
The proposed rating is:
- 🟨 Medium
Collateral Risk
The pool enables borrowing of DOG with any of the pool's assets as collateral. Collateral rehypothecation is enabled in the pool.
The proposed rating is:
- 🟨 Medium