Is Latch Safe?
Risk Grade: C+ (40/100)
Latch is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Elevated risk — innovative omnichain yield aggregation introduces compounded smart contract and bridge dependencies that increase the attack surface beyond traditional single-chain yield protocols.
Latch is an omnichain yield protocol built on Gravity that lets users deposit ETH or stablecoins to earn yield from underlying DeFi vaults, receiving liquid staking tokens (atUSD, atETH) that grow in value over time. With $15M in TVL and cross-chain deposit/withdrawal capabilities via LayerZero, it offers a unified savings experience. The C+ risk grade reflects the complexity of its multi-chain architecture, novel dual-market withdrawal system, and dependency on multiple underlying DeFi vault strategies.
TVL
$15M
Mechanisms
7
Interactions
5
Value Grade
D
Key Risks for Latch Users
Your deposits are invested in underlying DeFi vaults — if any of those vaults get hacked or lose money, the value of your atUSD or atETH tokens will drop accordingly
Quick withdrawals depend on DEX liquidity that could dry up in a market panic; the fallback primary market takes 7 days to process, leaving you exposed during that waiting period
Cross-chain operations add bridge risk — your assets travel through Gravity and LayerZero infrastructure, and any bridge vulnerability could affect your deposits
Top Risk Factors
- •Omnichain yield aggregation across multiple DeFi vaults introduces compounded smart contract risk — a vulnerability in any underlying vault could impact all depositors
- •Primary market withdrawals have a T+7 day waiting period, creating liquidity risk during market stress when secondary DEX liquidity may be depleted simultaneously
- •NAV-based pricing relies on accurate DeFi vault valuations — oracle lag or manipulation of underlying vault metrics could create arbitrage exploits against the protocol
Risk Score Breakdown
Latch's highest risk area is Track Record (8/15). Here's how each dimension contributes to the overall 40/100 score:
Read the Full Latch 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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