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Aave
Yield Aggregator
Overall Safety Score
81
This protocol has excellent safety metrics with minimal identified risks. It implements best practices in security and has a proven track record.
Risk Assessment Breakdown
Smart Contract Risk
75%
This protocol has undergone multiple security audits and has been live for over 2 years without major security incidents.
Impermanent Loss
60%
Moderate risk of impermanent loss due to the volatility of paired assets in liquidity pools.
Market Risk
50%
Market conditions can impact yields and token valuations. The protocol has shown resilience in various market conditions.
Liquidation Risk
45%
The protocol has conservative liquidation parameters that help protect users from unexpected liquidations.
Tokenomic Design Risk
65%
The token distribution and emission schedule are designed to align incentives for long-term sustainability.
Security Audits & Practices
Certik Security Audit
January 2023
PeckShield Security Assessment
October 2022
Risk Mitigation Recommendations
- Diversify investments across multiple protocols to minimize exposure
- Start with smaller amounts to test the protocol's functionality
- Stay informed about market conditions that may affect yields
- Regularly check protocol updates and governance decisions
- Be cautious of unusually high APYs that might not be sustainable