diff --git a/docs/concepts/benefits.md b/docs/concepts/benefits.md index 65a367b..1021db7 100644 --- a/docs/concepts/benefits.md +++ b/docs/concepts/benefits.md @@ -4,7 +4,7 @@ title: Benefits sidebar_position: 2 --- -### A Gasless experience +## A Gasless experience You're eager to deposit funds into a L1 DeFi protocol to earn yields or borrow assets, but have you considered the potential cost in gas fees? Could it be $20, $100, or a staggering $300? The same applies for withdrawals or repayments. @@ -20,11 +20,35 @@ Given the prevalent gas prices averaging around 40 Gwei, it's evident that gas f At Nimbora, our primary objective is to foster inclusivity within the realm of DeFi. We firmly believe that individuals should have the opportunity to earn yields, regardless of whether they're investing $50 or $5,000. Financial constraints should never be a barrier to entry. -Our innovative solution involves batching user transactions, allowing for efficient execution and minimal gas expenditure [More details here](/docs/concepts/cost_efficiency). -By leveraging these cutting-edge technologies, we're breaking down barriers and democratizing access to DeFi opportunities for all. +### The Role of Starknet in Reducing Costs -### Expanding DeFi Access from Layer 2 +Starknet plays a crucial role in Nimbora's ability to offer reduced gas fees. As an advanced Layer 2 solution, Starknet enhances the scalability of the blockchain by processing transactions off the main Ethereum chain. This process not only speeds up transactions but also significantly lowers the cost associated with them. By utilizing Starknet, Nimbora taps into these benefits, passing the savings directly to its users. + +### Batching Mechanism: Pooling Transactions for Efficiency + +Nimbora introduces an innovative batching mechanism that further enhances its cost-efficiency. This mechanism allows users to pool their transactions together, creating a collective action that can interact with DeFi protocols on the Layer 1 (L1) network at a fraction of the usual price. By doing so, Nimbora not only makes transactions more affordable but also fosters a more inclusive and accessible DeFi ecosystem. + +![Gas](/content/pooling.png) + + +### The L2 Pooling Manager: Accumulating and Batching Requests + +The transaction process begins when the Nimbora L2 Pooling Manager contract receives a request from a user. This contract acts as a collector, gathering individual requests into a new batch. The batching continues until the batch reaches its capacity. At this point, the L2 Pooling Manager packages all the requests into a single bundle and forwards it to the L1 Pooling Manager contract for further processing. + +### L1 Verification and Asset Handling + +Upon receiving the batch from the L2 side, the L1 Pooling Manager contract must wait for the batch to be verified on the Ethereum mainnet. This verification process is subject to network congestion but typically completes within a 12-hour window. Once verified, the L1 Pooling Manager interacts with the Starkgate Bridge to retrieve the necessary assets. These assets are then deposited according to the predetermined strategies. + +### Reporting and Feedback Loop + +The final step in the transaction process involves the L1 Pooling Manager generating a detailed report. This report confirms the successful deposit of assets and is sent back to the L2 Pooling Manager. This feedback loop ensures transparency and trust in the transaction process, allowing users to confidently engage with Nimbora's DeFi ecosystem. + +By adopting these advanced mechanisms and leveraging Layer 2 solutions like Starknet, Nimbora is paving the way for a more affordable and accessible blockchain experience. Its innovative approach to transaction batching and cost reduction not only benefits individual users but also contributes to the broader goal of fostering a more inclusive DeFi ecosystem. + + + +## Expanding DeFi Access from Layer 2 While Layer 2 (L2) solutions represent a significant innovation for scaling Ethereum DeFi, the majority of the ecosystem and liquidity remains rooted in Layer 1 (L1). It's important to acknowledge that L2 can take several years to mature into a resilient and robust DeFi ecosystem with deep liquidity. This challenge is further exacerbated when the L2 solution is not EVM-compatible, as protocols must allocate significant resources to deploy on these new platforms. diff --git a/docs/concepts/cost_efficiency.md b/docs/concepts/cost_efficiency.md deleted file mode 100644 index 3564e2a..0000000 --- a/docs/concepts/cost_efficiency.md +++ /dev/null @@ -1,35 +0,0 @@ ---- -id: cost_efficiency -title: Cost Efficiency -sidebar_position: 3 ---- - -# Introduction to Nimbora's Cost-Efficiency - -Nimbora stands out in the blockchain space primarily due to its innovative approach to minimizing transaction costs for its users. The platform achieves this remarkable feat by leveraging the power of Layer 2 (L2) solutions, specifically Starknet, to offer gas fees that are up to seven times lower than those on the Ethereum mainnet. This significant cost reduction opens up new possibilities for users, making decentralized finance (DeFi) interactions more accessible and economical. - -## Understanding Gas Fees Reduction through Layer 2 Solutions - -### The Role of Starknet in Reducing Costs - -Starknet plays a crucial role in Nimbora's ability to offer reduced gas fees. As an advanced Layer 2 solution, Starknet enhances the scalability of the blockchain by processing transactions off the main Ethereum chain. This process not only speeds up transactions but also significantly lowers the cost associated with them. By utilizing Starknet, Nimbora taps into these benefits, passing the savings directly to its users. - -### Batching Mechanism: Pooling Transactions for Efficiency - -Nimbora introduces an innovative batching mechanism that further enhances its cost-efficiency. This mechanism allows users to pool their transactions together, creating a collective action that can interact with DeFi protocols on the Layer 1 (L1) network at a fraction of the usual price. By doing so, Nimbora not only makes transactions more affordable but also fosters a more inclusive and accessible DeFi ecosystem. - -## In-Depth Look at Nimbora's Transaction Processing - -### The L2 Pooling Manager: Accumulating and Batching Requests - -The transaction process begins when the Nimbora L2 Pooling Manager contract receives a request from a user. This contract acts as a collector, gathering individual requests into a new batch. The batching continues until the batch reaches its capacity. At this point, the L2 Pooling Manager packages all the requests into a single bundle and forwards it to the L1 Pooling Manager contract for further processing. - -### L1 Verification and Asset Handling - -Upon receiving the batch from the L2 side, the L1 Pooling Manager contract must wait for the batch to be verified on the Ethereum mainnet. This verification process is subject to network congestion but typically completes within a 12-hour window. Once verified, the L1 Pooling Manager interacts with the Starkgate Bridge to retrieve the necessary assets. These assets are then deposited according to the predetermined strategies. - -### Reporting and Feedback Loop - -The final step in the transaction process involves the L1 Pooling Manager generating a detailed report. This report confirms the successful deposit of assets and is sent back to the L2 Pooling Manager. This feedback loop ensures transparency and trust in the transaction process, allowing users to confidently engage with Nimbora's DeFi ecosystem. - -By adopting these advanced mechanisms and leveraging Layer 2 solutions like Starknet, Nimbora is paving the way for a more affordable and accessible blockchain experience. Its innovative approach to transaction batching and cost reduction not only benefits individual users but also contributes to the broader goal of fostering a more inclusive DeFi ecosystem. \ No newline at end of file diff --git a/docs/concepts/earn/pendle_lp_integration/01-aave_usdt.md b/docs/concepts/earn/pendle_lp_integration/01-aave_usdt.md deleted file mode 100644 index a15fc9b..0000000 --- a/docs/concepts/earn/pendle_lp_integration/01-aave_usdt.md +++ /dev/null @@ -1,16 +0,0 @@ ---- -id: aave_usdt -title: Aave Usdt -sidebar_position: 1 -sidebar_class_name: hidden ---- - -**Pendle LP stratgy, earn with USDT** - -aUSDT is an interest-bearing token received when depositing USDT (Tether) into Aave's lending pools. It represents a user's deposited USDT plus accrued interest. Users earn interest on their deposited USDT in the form of aUSDT, which grows over time based on the interest rate offered by the lending pool. - - -### What is AAVE - - - Decentralized Lending and Borrowing Platform: AAVE is a decentralized finance (DeFi) platform that allows users to lend and borrow cryptocurrencies without the need for traditional intermediaries like banks. It enables individuals to earn interest on deposited assets or borrow assets by providing collateral. - - Interest Rates and Algorithmic Adjustments: AAVE employs an innovative interest rate model that adjusts borrowing rates dynamically based on supply and demand dynamics within the protocol. This helps to ensure competitive and efficient utilization of assets while maintaining stability. diff --git a/docs/concepts/earn/pendle_lp_integration/02-flux_usdc.md b/docs/concepts/earn/pendle_lp_integration/02-flux_usdc.md deleted file mode 100644 index 701627f..0000000 --- a/docs/concepts/earn/pendle_lp_integration/02-flux_usdc.md +++ /dev/null @@ -1,18 +0,0 @@ ---- -id: flux_usdc -title: Flux Usdc -sidebar_position: 2 -sidebar_class_name: hidden ---- - -**Pendle LP stratgy, earn with USDC** - -FUSDC is an interest-bearing token received when depositing USDC into Flux Finance's lending pools. FUSDC represents a user's deposited USDC plus accrued interest. Users earn interest on their deposited USDC in the form of FUSDC, which grows over time based on the interest rate offered by the lending pool. - - - - -### What is FLUX - - - Decentralized Lending and Borrowing: Flux Protocol, developed by the Ondo Finance team, facilitates decentralized lending and borrowing. It allows users to lend their assets to earn interest or borrow assets against collateral in a peer-to-pool (P2Pool) model. - - Support for Permissionless and Permissioned Tokens: Flux Protocol supports both permissionless tokens (e.g., USDC) and permissioned tokens (e.g., OUSG), with permissions enforced on a per-asset basis. This flexibility accommodates various token types and use cases within the protocol. diff --git a/docs/concepts/risks/strategies/_category_.json b/docs/concepts/products/_category_.json similarity index 61% rename from docs/concepts/risks/strategies/_category_.json rename to docs/concepts/products/_category_.json index 7940306..8f6043d 100644 --- a/docs/concepts/risks/strategies/_category_.json +++ b/docs/concepts/products/_category_.json @@ -1,5 +1,5 @@ { - "label": "Strategies", + "label": "Products", "position": 3, "collapsed": false -} \ No newline at end of file +} diff --git a/docs/concepts/borrow/01-statregy-lusd.md b/docs/concepts/products/borrow/01-statregy-lusd.md similarity index 58% rename from docs/concepts/borrow/01-statregy-lusd.md rename to docs/concepts/products/borrow/01-statregy-lusd.md index 334e6e8..9ae98c2 100644 --- a/docs/concepts/borrow/01-statregy-lusd.md +++ b/docs/concepts/products/borrow/01-statregy-lusd.md @@ -50,3 +50,36 @@ sidebar_position: 3 ### I don’t have enough LUSD to pay my debt, what can I do? - If you don’t have enough LUSD in your account you can use the [Starkgate](https://starkgate.starknet.io/) bridge to bridge the LUSD amount required to pay your debt and get back your collateral. + + + +### Understanding Risks Associated with Liquity + +1. **Smart Contract Risk**: + - Liquity, like any other DeFi protocol, is vulnerable to smart contract exploits. Despite efforts to audit and secure the smart contracts, there remains a risk of undiscovered vulnerabilities. Exploits can lead to loss of funds or manipulation of the protocol. + +2. **Liquidation Risk**: + - When users create a trove in Liquity, they must maintain a collateral ratio of at least 110%. Troves that fall below this threshold are subject to liquidation. + +**Process**: + 1. **Stability Pool Usage**: The system uses funds from the Stability Pool to cancel the debt of undercollateralized troves. + 2. **Redistribution Mechanism**: If the Stability Pool lacks sufficient funds, a redistribution mechanism is activated, spreading the debt and collateral of liquidated troves among all trove holders. + +**Penalty**: +Users facing liquidation may incur a penalty of up to 10%, which incentivizes them to maintain a safe collateral ratio. + + +3. **Redemption Risk**: + - Liquity allows direct redemption of LUSD stablecoins for the underlying collateral, Ether. This process carries certain risks for borrowers. + +**Process**: + 1. **Debt Cancellation**: Redeeming LUSD cancels debt from the riskiest trove in the system, i.e., the trove with the lowest collateral ratio. + 2. **Collateral Transfer**: The redeemer receives a corresponding amount of Ether from the trove used for debt cancellation. + +**Impact**: +Redemptions reduce the borrower's leverage and increase the overall collateral ratio of the system. While there's no additional penalty for borrowers, redemptions can lead to collateral loss and deleveraging of positions. + + +### Vigilant Surveillance: + +In the realm of Nimbora, your trove's collateralization ratio is closely monitored by the protocol itself. While you can't directly alter this ratio, rest assured that Nimbora diligently adjusts the risk levels to safeguard against potential liquidations or redemptions. \ No newline at end of file diff --git a/docs/concepts/borrow/_category_.json b/docs/concepts/products/borrow/_category_.json similarity index 100% rename from docs/concepts/borrow/_category_.json rename to docs/concepts/products/borrow/_category_.json diff --git a/docs/concepts/earn/01-strategy-sdai.md b/docs/concepts/products/earn/01-strategy-sdai.md similarity index 76% rename from docs/concepts/earn/01-strategy-sdai.md rename to docs/concepts/products/earn/01-strategy-sdai.md index 77c0150..b4f06ef 100644 --- a/docs/concepts/earn/01-strategy-sdai.md +++ b/docs/concepts/products/earn/01-strategy-sdai.md @@ -69,3 +69,27 @@ This strategy is straightforward as the logic is very simple: it consists of dep - [Website](https://makerdao.com/en/) - [Docs](https://docs.makerdao.com/) - [MakerDAO on Twitter](https://twitter.com/MakerDAO) + + + +### Understanding Risks Associated with SDAI + +1. **Smart Contract Risk**: + - sDAI, like other DeFi protocols, is susceptible to exploits, including smart contract vulnerabilities and malicious attacks. + +2. **Regulatory Risks**: + - MakerDAO's shift towards RWA-based collateral introduces regulatory uncertainty due to its decentralized nature. + - Increased reliance on RWAs may lead to compliance challenges and potential regulatory gaps. + +3. **Collateral Risks**: + - RWAs' default risks may result in collateral shortfalls, jeopardizing the 1:1 USD peg of sDAI. + - Fluctuations in the DAI Savings Rate (DSR) could strain liquidity buffers if significant amounts of sDAI are minted or burned abruptly. + - RWAs' sensitivity to interest rate fluctuations may lead to losses if redemptions are required before maturity. + +4. **Collateral Risks**: + - MakerDAO's engagement with multiple counterparties exposes it to credit risks such as liquidity, reputation, and settlement challenges. + +5. **Centralization and Transparency Risks**: + - Pursuing additional returns through RWAs may increase centralization within MakerDAO. + - Onboarding RWAs reduces transparency compared to on-chain crypto assets, posing transparency risks. + diff --git a/docs/concepts/earn/02-strategy-pendle.md b/docs/concepts/products/earn/02-strategy-pendle.md similarity index 74% rename from docs/concepts/earn/02-strategy-pendle.md rename to docs/concepts/products/earn/02-strategy-pendle.md index 54e412a..f6c02d9 100644 --- a/docs/concepts/earn/02-strategy-pendle.md +++ b/docs/concepts/products/earn/02-strategy-pendle.md @@ -39,4 +39,17 @@ More about LP profitability [here](https://medium.com/pendle/evaluating-performa - Protocol for Yield Tokenization: PENDLE is a protocol that facilitates the tokenization of future yield streams from decentralized finance (DeFi) protocols. It allows users to trade these yield streams in the form of principal tokens (PT) and yield tokens (YT). - Innovative Yield Trading: PENDLE introduces innovative mechanisms such as Pendle Pools, which enable users to trade future yield streams before they are realized. This allows users to speculate on future yield movements and potentially earn profits from them. - Splitting of Tokens: PENDLE splits the yield-bearing tokens into principal tokens (PT) and yield tokens (YT). PT represents the principal amount deposited, while YT represents the future yield generated by the deposited assets. - - Liquidity Provision: Users can provide liquidity to Pendle Pools by depositing their tokens, thereby participating in the tokenization and trading of future yield streams. In return, they receive Pendle tokens representing their share of the pool. \ No newline at end of file + - Liquidity Provision: Users can provide liquidity to Pendle Pools by depositing their tokens, thereby participating in the tokenization and trading of future yield streams. In return, they receive Pendle tokens representing their share of the pool. + + +### Understanding Risks Associated with Pendle + +1. **Smart Contract Risk**: + - Pendle's smart contracts have undergone rigorous audits by six of crypto's most respected firms to ensure their security. + - All of Pendle's smart contracts are open source, allowing anyone to monitor the codebase and identify potential vulnerabilities. + - Despite these measures, Pendle, like other DeFi protocols, remains susceptible to smart contract vulnerabilities and malicious attacks. + +2. **Interaction with Third-party Protocols**: + - Pendle interacts with third-party protocols and contracts, introducing additional risk associated with the security and reliability of these external systems. + - Pendle explicitly disclaims responsibility for any funds lost due to exploits in third-party contracts, highlighting the importance of due diligence by users when engaging with such protocols. + \ No newline at end of file diff --git a/docs/concepts/earn/_category_.json b/docs/concepts/products/earn/_category_.json similarity index 100% rename from docs/concepts/earn/_category_.json rename to docs/concepts/products/earn/_category_.json diff --git a/docs/concepts/risks/strategies/pendle-third-party/01-aave.md b/docs/concepts/products/earn/pendle_lp_integration/01-aave_usdt.md similarity index 66% rename from docs/concepts/risks/strategies/pendle-third-party/01-aave.md rename to docs/concepts/products/earn/pendle_lp_integration/01-aave_usdt.md index 9bbda0f..d8240ea 100644 --- a/docs/concepts/risks/strategies/pendle-third-party/01-aave.md +++ b/docs/concepts/products/earn/pendle_lp_integration/01-aave_usdt.md @@ -1,10 +1,23 @@ --- -id: aave -title: Aave Lending +id: aave_usdt +title: Aave Usdt sidebar_position: 1 +sidebar_class_name: hidden --- -# Understanding Risks Associated with Aave +**Pendle LP stratgy, earn with USDT** + +aUSDT is an interest-bearing token received when depositing USDT (Tether) into Aave's lending pools. It represents a user's deposited USDT plus accrued interest. Users earn interest on their deposited USDT in the form of aUSDT, which grows over time based on the interest rate offered by the lending pool. + + +### What is AAVE + + - Decentralized Lending and Borrowing Platform: AAVE is a decentralized finance (DeFi) platform that allows users to lend and borrow cryptocurrencies without the need for traditional intermediaries like banks. It enables individuals to earn interest on deposited assets or borrow assets by providing collateral. + - Interest Rates and Algorithmic Adjustments: AAVE employs an innovative interest rate model that adjusts borrowing rates dynamically based on supply and demand dynamics within the protocol. This helps to ensure competitive and efficient utilization of assets while maintaining stability. + + + +### Understanding Risks Associated with Aave 1. **Smart Contract Risk**: Aave operates on smart contracts, which are lines of code stored on the blockchain. While these smart contracts are designed to execute transactions autonomously, they are not immune to bugs or vulnerabilities. If there is a flaw in the smart contract's code, it could be exploited by malicious actors, potentially resulting in the loss of funds for lenders. diff --git a/docs/concepts/risks/strategies/pendle-third-party/02-flux.md b/docs/concepts/products/earn/pendle_lp_integration/02-flux_usdc.md similarity index 67% rename from docs/concepts/risks/strategies/pendle-third-party/02-flux.md rename to docs/concepts/products/earn/pendle_lp_integration/02-flux_usdc.md index c9cc1e7..0988c79 100644 --- a/docs/concepts/risks/strategies/pendle-third-party/02-flux.md +++ b/docs/concepts/products/earn/pendle_lp_integration/02-flux_usdc.md @@ -1,10 +1,24 @@ --- -id: flux -title: Flux Lending +id: flux_usdc +title: Flux Usdc sidebar_position: 2 +sidebar_class_name: hidden --- -# Understanding Risks Associated with Flux +**Pendle LP stratgy, earn with USDC** + +FUSDC is an interest-bearing token received when depositing USDC into Flux Finance's lending pools. FUSDC represents a user's deposited USDC plus accrued interest. Users earn interest on their deposited USDC in the form of FUSDC, which grows over time based on the interest rate offered by the lending pool. + + + + +### What is FLUX + + - Decentralized Lending and Borrowing: Flux Protocol, developed by the Ondo Finance team, facilitates decentralized lending and borrowing. It allows users to lend their assets to earn interest or borrow assets against collateral in a peer-to-pool (P2Pool) model. + - Support for Permissionless and Permissioned Tokens: Flux Protocol supports both permissionless tokens (e.g., USDC) and permissioned tokens (e.g., OUSG), with permissions enforced on a per-asset basis. This flexibility accommodates various token types and use cases within the protocol. + + +### Understanding Risks Associated with Flux 1. **Smart Contract Risk**: Flux operates on smart contracts, which are lines of code stored on the blockchain. While these smart contracts are designed to execute transactions autonomously, they are not immune to bugs or vulnerabilities. If there is a flaw in the smart contract's code, it could be exploited by malicious actors, potentially resulting in the loss of funds for lenders. diff --git a/docs/concepts/earn/pendle_lp_integration/03-etherfi.md b/docs/concepts/products/earn/pendle_lp_integration/03-etherfi.md similarity index 61% rename from docs/concepts/earn/pendle_lp_integration/03-etherfi.md rename to docs/concepts/products/earn/pendle_lp_integration/03-etherfi.md index 857a795..c4d7c3e 100644 --- a/docs/concepts/earn/pendle_lp_integration/03-etherfi.md +++ b/docs/concepts/products/earn/pendle_lp_integration/03-etherfi.md @@ -27,4 +27,18 @@ Yield come from several sources: - Non-Custodial Staking: EtherFi disrupts the decentralized finance (DeFi) space by offering non-custodial Ethereum staking. Users maintain full control over their keys, ensuring security and independence in the staking process. This approach contrasts with traditional custodial services where users relinquish control of their assets to third-party entities. - Integration with EigenLayer for Enhanced Yields: EtherFi collaborates with EigenLayer, a protocol that increases rewards and boosts the value of DeFi by supporting simpler restaking. Through this integration, users can earn additional yields on top of Ethereum's staking rewards without locking up their assets, promoting flexibility and maximizing earning potential. - \ No newline at end of file + + +### Understanding Risks Associated with EtherFi + +1. **Smart Contract Risks**: + - Though EtherFi's smart contracts are crafted carefully, audited, and thoroughly tested, there always exist risks in interacting with smart contracts on the Ethereum network. + +2. **Key Management Risks**: + - With EtherFi's desktop and decentralized web applications, efforts are made to utilize the latest, safest methods for key encryption and protection. However, EtherFi cannot guarantee or represent that their methods are or will remain 100% secure. Additionally, the responsibility for key management lies in the hands of the user, and preventing user errors, while a primary aim, is virtually impossible. + +3. **Regulatory Risks**: + - EtherFi believes in the potential of the Ethereum network to become the settlement layer for global financial markets. However, this conviction does not guarantee the future. Cryptocurrencies, including Ethereum, have faced increased governmental scrutiny as they transition from niche to mainstream. Regulatory risks include, but are not limited to: + - Bans on cloud service providers offering services to crypto-related enterprises. + - Bans on ISPs providing crypto-related services. + - Onerous taxes levied on various network transactions. diff --git a/docs/concepts/earn/pendle_lp_integration/_category_.json b/docs/concepts/products/earn/pendle_lp_integration/_category_.json similarity index 100% rename from docs/concepts/earn/pendle_lp_integration/_category_.json rename to docs/concepts/products/earn/pendle_lp_integration/_category_.json diff --git a/docs/concepts/products.md b/docs/concepts/products/products.md similarity index 97% rename from docs/concepts/products.md rename to docs/concepts/products/products.md index 7c45ab0..523a6b4 100644 --- a/docs/concepts/products.md +++ b/docs/concepts/products/products.md @@ -1,7 +1,7 @@ --- -id: products +id: Products title: Products -sidebar_position: 4 +sidebar_position: 3 --- # Nimbora Products: Bridging DeFi with Ease diff --git a/docs/concepts/risks/_category_.json b/docs/concepts/risks/_category_.json deleted file mode 100644 index 02152ce..0000000 --- a/docs/concepts/risks/_category_.json +++ /dev/null @@ -1,5 +0,0 @@ -{ - "label": "Risks", - "position": 8, - "collapsed": false -} \ No newline at end of file diff --git a/docs/concepts/risks/nimbora.md b/docs/concepts/risks/nimbora.md deleted file mode 100644 index c6c5aa5..0000000 --- a/docs/concepts/risks/nimbora.md +++ /dev/null @@ -1,16 +0,0 @@ ---- -id: nimbora -title: Nimbora -sidebar_position: 2 ---- - -# Understanding Risks Associated with Nimbora - -- Smart Contract Vulnerabilities: - Smart contracts, despite their transparency and automation, can contain bugs and vulnerabilities. Even after audits, undiscovered issues may exist. Exploits can occur if attackers identify and exploit these vulnerabilities, potentially leading to financial loss or protocol manipulation. - -- Strategy Risks: - Evaluate the risks associated with the Layer 1 (L1) strategy employed by Nimbora. Strategies may expose users to various risks, including market volatility, impermanent loss, and protocol-specific vulnerabilities. Understanding these risks is essential for informed participation in Nimbora's ecosystem. - -## Audit Reports for Nimbora: -- \ No newline at end of file diff --git a/docs/concepts/risks/starknet.md b/docs/concepts/risks/starknet.md deleted file mode 100644 index 28c73ab..0000000 --- a/docs/concepts/risks/starknet.md +++ /dev/null @@ -1,38 +0,0 @@ ---- -id: starknet -title: Starknet -sidebar_position: 1 ---- - -# Understanding Risks Associated with Starknet - -[Starknet](https://www.starknet.io/en/explore-starknet), a Layer 2 scaling solution for Ethereum, offers significant benefits in terms of transaction speed and cost. However, like any technology, it comes with its own set of risks. Here, we break down some of these risks in simple terms. - -## State Validation: Ensuring Correctness with ZK Proofs - -- **What It Means**: Starknet uses a technology called zkSTARKs (zero-knowledge Scalable Transparent ARguments of Knowledge) to make sure that all transactions and states (basically, the current information and balance of your account) on the network are correct and valid. -- **Why It Matters**: This technology is crucial for maintaining the integrity and trustworthiness of the network, ensuring that your transactions are accurately recorded. - -## Data Availability: Keeping Information Accessible - -- **What It Means**: All the necessary data (referred to as state diffs or SD) for constructing proofs of transactions are published and stored directly on the blockchain. -- **Why It Matters**: This practice ensures transparency and allows for the verification of transactions by anyone at any time, contributing to the security and reliability of the network. - -## Exit Window: The Challenge of Instant Upgrades - -- **What It Means**: Starknet allows for contracts to be upgraded instantly, but it doesn't provide a specific window for users to exit or withdraw their funds if they disagree with an upgrade. -- **Why It Matters**: This could potentially leave users with less control over their assets in the event of a controversial or unwanted network upgrade. - -## Sequencer Failure: A Single Point of Failure - -- **What It Means**: Starknet relies on a component called a sequencer to process transactions. If the sequencer fails or starts censoring transactions, there's no alternative mechanism in place to include those transactions in the network. -- **Why It Matters**: This could lead to delays or the inability to execute transactions, impacting the network's reliability. - -## Proposer Failure: Limited Withdrawal Options - -- **What It Means**: Only certain approved participants (whitelisted proposers) can submit state updates to the Ethereum mainnet. If these proposers fail, users cannot withdraw their funds. -- **Why It Matters**: This limitation could freeze users' assets on the network, preventing access when needed. - ---- - -While Starknet presents a promising solution to Ethereum's scalability challenges, it's important for users to be aware of these potential risks. Understanding these aspects can help users make informed decisions when interacting with the network. \ No newline at end of file diff --git a/docs/concepts/risks/strategies/01-risk-lusd.md b/docs/concepts/risks/strategies/01-risk-lusd.md deleted file mode 100644 index bb514c2..0000000 --- a/docs/concepts/risks/strategies/01-risk-lusd.md +++ /dev/null @@ -1,40 +0,0 @@ ---- -id: lusd -title: LUSD -sidebar_position: 1 ---- - -# Understanding Risks Associated with Liquity - -## Smart Contract Exploit Risk - -Liquity, like any other DeFi protocol, is vulnerable to smart contract exploits. Despite efforts to audit and secure the smart contracts, there remains a risk of undiscovered vulnerabilities. Exploits can lead to loss of funds or manipulation of the protocol. - -## Liquidation Risk - -### Overview: -When users create a trove in Liquity, they must maintain a collateral ratio of at least 110%. Troves that fall below this threshold are subject to liquidation. - -### Process: -1. **Stability Pool Usage**: The system uses funds from the Stability Pool to cancel the debt of undercollateralized troves. -2. **Redistribution Mechanism**: If the Stability Pool lacks sufficient funds, a redistribution mechanism is activated, spreading the debt and collateral of liquidated troves among all trove holders. - -### Penalty: -Users facing liquidation may incur a penalty of up to 10%, which incentivizes them to maintain a safe collateral ratio. - -## Redemption Risk - -### Overview: -Liquity allows direct redemption of LUSD stablecoins for the underlying collateral, Ether. This process carries certain risks for borrowers. - -### Process: -1. **Debt Cancellation**: Redeeming LUSD cancels debt from the riskiest trove in the system, i.e., the trove with the lowest collateral ratio. -2. **Collateral Transfer**: The redeemer receives a corresponding amount of Ether from the trove used for debt cancellation. - -### Impact: -Redemptions reduce the borrower's leverage and increase the overall collateral ratio of the system. While there's no additional penalty for borrowers, redemptions can lead to collateral loss and deleveraging of positions. - - -## Vigilant Surveillance: - -In the realm of Nimbora, your trove's collateralization ratio is closely monitored by the protocol itself. While you can't directly alter this ratio, rest assured that Nimbora diligently adjusts the risk levels to safeguard against potential liquidations or redemptions. \ No newline at end of file diff --git a/docs/concepts/risks/strategies/02-risk-sdai.md b/docs/concepts/risks/strategies/02-risk-sdai.md deleted file mode 100644 index de7d911..0000000 --- a/docs/concepts/risks/strategies/02-risk-sdai.md +++ /dev/null @@ -1,28 +0,0 @@ ---- -id: sdai -title: SDAI -sidebar_position: 2 ---- - -# Understanding Risks Associated with SDAI - -## Exploit Risk (General DeFi Risk): -- **Smart Contract Vulnerabilities**: sDAI, like other DeFi protocols, is susceptible to exploits, including smart contract vulnerabilities and malicious attacks. - - -## Regulatory Risks: -- **Decentralized Nature**: MakerDAO's shift towards RWA-based collateral introduces regulatory uncertainty due to its decentralized nature. -- **Compliance Challenges**: Increased reliance on RWAs may lead to compliance challenges and potential regulatory gaps. - -## Collateral Risks: -- **Default Risks**: RWAs' default risks may result in collateral shortfalls, jeopardizing the 1:1 USD peg of sDAI. -- **Liquidity Strains**: Fluctuations in the DAI Savings Rate (DSR) could strain liquidity buffers if significant amounts of sDAI are minted or burned abruptly. -- **Duration Risk**: RWAs' sensitivity to interest rate fluctuations may lead to losses if redemptions are required before maturity. - -## Counterparty Risk: -- **Credit Risks**: MakerDAO's engagement with multiple counterparties exposes it to credit risks such as liquidity, reputation, and settlement challenges. - -## Centralization and Transparency Risks: -- **Increased Centralization**: Pursuing additional returns through RWAs may increase centralization within MakerDAO. -- **Transparency Challenges**: Onboarding RWAs reduces transparency compared to on-chain crypto assets, posing transparency risks. - diff --git a/docs/concepts/risks/strategies/03-risk-pendle.md b/docs/concepts/risks/strategies/03-risk-pendle.md deleted file mode 100644 index d8ff3ed..0000000 --- a/docs/concepts/risks/strategies/03-risk-pendle.md +++ /dev/null @@ -1,16 +0,0 @@ ---- -id: pendle -title: Pendle -sidebar_position: 3 ---- - -# Understanding Risks Associated with Pendle - -## Smart Contract Security: -- Pendle's smart contracts have undergone rigorous audits by six of crypto's most respected firms to ensure their security. -- All of Pendle's smart contracts are open source, allowing anyone to monitor the codebase and identify potential vulnerabilities. -- Despite these measures, Pendle, like other DeFi protocols, remains susceptible to smart contract vulnerabilities and malicious attacks. - -## Interaction with Third-party Protocols: -- Pendle interacts with third-party protocols and contracts, introducing additional risk associated with the security and reliability of these external systems. -- Pendle explicitly disclaims responsibility for any funds lost due to exploits in third-party contracts, highlighting the importance of due diligence by users when engaging with such protocols. diff --git a/docs/concepts/risks/strategies/pendle-third-party/03-etherfi.md b/docs/concepts/risks/strategies/pendle-third-party/03-etherfi.md deleted file mode 100644 index cb86de8..0000000 --- a/docs/concepts/risks/strategies/pendle-third-party/03-etherfi.md +++ /dev/null @@ -1,21 +0,0 @@ ---- -id: etherfi -title: EtherFi LRT -sidebar_position: 3 ---- - -# Understanding Risks Associated with EtherFi - -When engaging with EtherFi, a decentralized finance (DeFi) platform, it's essential to be aware of the potential risks involved. Here are some key risks to consider: - -1. **Smart Contract Risks**: - - Though EtherFi's smart contracts are crafted carefully, audited, and thoroughly tested, there always exist risks in interacting with smart contracts on the Ethereum network. - -2. **Key Management Risks**: - - With EtherFi's desktop and decentralized web applications, efforts are made to utilize the latest, safest methods for key encryption and protection. However, EtherFi cannot guarantee or represent that their methods are or will remain 100% secure. Additionally, the responsibility for key management lies in the hands of the user, and preventing user errors, while a primary aim, is virtually impossible. - -3. **Regulatory Risks**: - - EtherFi believes in the potential of the Ethereum network to become the settlement layer for global financial markets. However, this conviction does not guarantee the future. Cryptocurrencies, including Ethereum, have faced increased governmental scrutiny as they transition from niche to mainstream. Regulatory risks include, but are not limited to: - - Bans on cloud service providers offering services to crypto-related enterprises. - - Bans on ISPs providing crypto-related services. - - Onerous taxes levied on various network transactions. diff --git a/docs/concepts/risks/strategies/pendle-third-party/_category_.json b/docs/concepts/risks/strategies/pendle-third-party/_category_.json deleted file mode 100644 index 0b90e22..0000000 --- a/docs/concepts/risks/strategies/pendle-third-party/_category_.json +++ /dev/null @@ -1,5 +0,0 @@ -{ - "label": "Pendle third party", - "position": 4, - "collapsed": false -} \ No newline at end of file diff --git a/static/content/pooling.png b/static/content/pooling.png new file mode 100644 index 0000000..811c25f Binary files /dev/null and b/static/content/pooling.png differ