Vesu WBTC-Re7USDC Risk Report
Summary
The Vesu WBTC-Re7USDC market represents WBTC deposits in Re7 Lab's "Re7 USDC" pool.
The pool enables various high MCAP assets and uses Vesu's official factory extension with Pragma price feeds.
The market's overall risk rating is 🟩 Low.
Datapoints
Pool Risk
The "Re7 USDC" 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
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 WBTC reflects Ethereum mainnet WBTC 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 WBTC 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 WBTC 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 WBTC/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
WBTC 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