Risks & Audits

Smart Contracts Risks

The protocol will be interacting with a number of smart contracts, all of which impose risks. This can be both known and unknown risks that could result in the failure or vulnerability on the smart contracts which could result in assets being locked or lost forever.

Liquidation Risks

Assets that are deposited or borrowed on the protocol could fluctuate in value due to the systemic risks of the issuing platforms or market volatility, including the loss of peg of certain pegged assets. This could result in the liquidation or closing of a user's position.

Oracle Risks

Oracle risks primarily involve the accuracy and timeliness of asset price data, which is crucial for functions like collateral valuation and liquidation mechanisms. Inaccurate or outdated price feeds can lead to improper valuations, posing significant financial risks.

Aurigami mitigates these risks by utilizing the Pyth Network, a highly reliable and efficient oracle solution. Pyth aggregates real-time market data from a diverse range of first-party sources, ensuring high accuracy and low latency. Its decentralized structure and advanced aggregation techniques protect against price manipulation and ensure a robust data feed, crucial for maintaining the integrity and stability of Aurigami's operations on the Aurora​.

Audits

Aurigami will continuously pursue security audits for the protocol.

However, security audits don't eliminate risks completely. Please do not deposit your life savings, or assets you can’t afford to lose, to Aurigami, especially as a liquidity provider.

Smart contracts: https://github.com/Aurigami-Finance/aurigami-smart-contracts

Audit reports: https://github.com/Aurigami-Finance/aurigami-smart-contracts/blob/main/docs/Aurigami_Finance_Audit_Report_by_WatchPug.pdf