Risks
The main risks that the vault is exposed to as well as it's mitigants are as follows:
- Smart Contract Risk: Funds in the vault are exposed to BRAHMA's smart contract risk as well as the smart contract risk of the underlying protocols that funds are deployed in
- PolyGains DegenVault launched on 27/09/2022. On 09/02/2023, PolyGains v2 launched as a main vault, after over 4 months of live operation and two independent audits (more here Audits)
- The vault only deploys funds to blue-chip, battle-tested protocols. In this case Curve, Balancer and Perpetual Protocol (only the earned yield)
- stMATIC price risk: The vault deploys MATIC to the stMATIC/MATIC Curve Pool. The strategy will suffer capital losses if stMATIC price deviates from MATIC’s. Importantly stMATIC is redeemable (after a short cool-down period) which should support peg stability. That being said pool liquidity will constantly be evaluated and Brahma will look to diversify the pool exposure going forward if necessary
- The health of the pool is continuously monitored using predefined quantitative metrics. Actionable alerts provide early warning signals to prevent capital losses. See Risk and Monitoring for more
Last modified 3mo ago