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Alpaca Finance

Alpaca Finance

Yield Aggregator

Overall Safety Score

65

This protocol demonstrates good safety standards with manageable risks. It has solid security measures in place.

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