Risk
Kurate is deployed code holding real money on a public chain. These are the ways it can cost you, stated plainly rather than buried in a disclaimer.
Smart contract risk
An exploit in Kurate, or in Kamino underneath it, can cost suppliers their deposits. The contracts are immutable and public, which means anyone can audit them — and also that a bug cannot be patched away once it is live.
Oracle risk
Every parameter is enforced against a Chainlink price. A stale or wrong price liquidates positions that should not have been touched, or fails to liquidate ones that should. There is no manual override for a bad print.
Liquidity risk
Two versions of the same problem. On the way out, a reserve at 100% utilisation blocks withdrawals until a borrower repays. On the way down, a liquidation that cannot be routed into EURC in time leaves a shortfall, and that shortfall becomes bad debt borne by EURC suppliers.
Issuer risk
cbBTC, SPYx and QQQx are claims on Coinbase and Backed respectively. Their redemption happens entirely outside this market. If an issuer fails or freezes redemption, the token can trade away from what it represents while the oracle keeps pricing it.
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Last updated 1 day ago · Kurate