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Reduce Protocol Risk and Simplify Smart Contract Risks



DeFi is speculative and high risk. Speculative because of the nascent nature of new financial instruments. High risk because of the potential unknown security vulnerabilities with such new technologies. By reducing your security attack vector and reducing the interactions to only the necessary DeFi protocols/smart contracts, you can reduce your overall risk. However, you can never eliminate risk!

The Strategy Goal

This strategy strives for Simplicity and Reduction

Simplicity in the DeFi financial instrument to use
Reduction in the technological risks to assume

With simplification, you inherently reduce risk. The two major technological risks are:
Platform Protocol Risk - This relates to the blockchain itself
DeFi Protocol/Smart Contract Risks - This relates to the DeFi protocol.

By using Ethereum as the blockchain, you reduce the platform risk associated with blockchains.
By using Uniswap v3 as our Decentralized Exchange (DEX), you reduce the DeFi protocol/smart contract risk
By providing liquidity for the USDC | ETH pair, you are using relatively simple DeFi contract that is one of the most common tokens to swap between.

Why Ethereum and Uniswap?

The potential security attack vector has been isolated to these two protocols. Please see the section for more details.

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