Is Homora V2 Safe?
Risk Grade: C+ (40/100)
Homora V2 is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Elevated risk — historic $37.5M exploit and high-leverage mechanics create substantial risk, partially offset by post-exploit code remediation and audits.
Homora V2 is a leveraged yield farming protocol allowing up to 9x leverage on DEX liquidity positions, with $110M TVL across Ethereum, Avalanche, and other chains. Its C+ grade reflects the February 2021 $37.5M exploit (patched and re-audited), high leverage amplifying liquidation risk, and the custom spell system that expands smart contract attack surface beyond standard lending protocols.
TVL
$110M
Mechanisms
5
Interactions
4
Value Grade
D
Key Risks for Homora V2 Users
Homora V2 was exploited for $37.5M in February 2021 through a flash loan attack. While the vulnerability was patched and the code re-audited, the incident demonstrates the protocol's complex attack surface.
Users can take up to 9x leveraged positions on yield farming strategies. This means small price drops can lead to rapid liquidation of positions, and during volatile markets, cascading liquidations can occur.
The protocol depends on external DEX protocols like Curve, Uniswap, and SushiSwap for underlying yield. If any of these protocols experience issues, Homora users with leveraged positions face amplified losses.
Top Risk Factors
- •The protocol suffered a $37.5M exploit in February 2021 via a complex flash loan attack that exploited missing input checks and rounding errors in Iron Bank integration — the codebase has since been patched and re-audited but the same core architecture remains.
- •Leveraged yield farming up to 9x amplifies liquidation risk during volatile markets; oracle delays on underlying LP token pricing can cause cascading liquidations across leveraged positions.
- •Dependency on external DEX protocols (Curve, Balancer, SushiSwap, Uniswap) for underlying yield strategies means vulnerabilities in those protocols directly affect Homora users.
- •Custom spell system allows users to execute complex leveraged strategies in a single transaction, increasing smart contract attack surface beyond standard lending protocols.
Risk Score Breakdown
Homora V2's highest risk area is Track Record (9/15). Here's how each dimension contributes to the overall 40/100 score:
Read the Full Homora V2 Risk Report
This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
View Full Report →Considering an investment?