Is Lagoon Safe?
Risk Grade: B- (33/100)
Lagoon is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — proven vault infrastructure with curator trust dependency, balanced by modular architecture and ERC-7540 standard foundation.
Lagoon is a vault infrastructure protocol using the ERC-7540 standard, allowing curators to deploy flexible on-chain yield strategies. With $113M TVL, its B- grade reflects a functional vault model with reasonable infrastructure, moderated by the trust required in individual curators who have broad discretionary authority over depositor funds.
TVL
$125M
Mechanisms
5
Interactions
4
Value Grade
D
Key Risks for Lagoon Users
Each vault is managed by an independent curator with broad authority over how depositor funds are invested. The safety of your deposit depends on the competence and honesty of the specific curator managing the vault you choose.
Deposits and withdrawals are processed asynchronously by curators, meaning there may be delays between when you request a withdrawal and when you receive your funds.
The vault share pricing is determined by a Valuation Oracle role. If this pricing is inaccurate, you could receive less than the fair value of your deposit when withdrawing.
Top Risk Factors
- •Curators have broad discretionary authority over vault strategies with maximal flexibility — a malicious or incompetent curator could deploy depositor funds into high-risk strategies or drain vaults.
- •Asynchronous vault model (ERC-7540) means deposits and withdrawals are processed asynchronously by curators, introducing delay and trust assumptions around timely settlement.
- •The Valuation Oracle role determines vault share pricing — an incorrect or manipulated valuation could allow attackers to enter or exit at favorable prices at other depositors' expense.
- •Multiple independent curators deploy strategies autonomously, creating fragmented risk profiles that depositors may not fully understand when entering a vault.
Risk Score Breakdown
Lagoon's highest risk area is Oracle Surface (5/10). Here's how each dimension contributes to the overall 33/100 score:
Read the Full Lagoon 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.
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