Arrakis Modular

Arrakis Modular receives a B risk grade (26/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — well-audited liquidity management platform with established client base, offset by inherent risks of upgradeable vault architecture and active LP management. Arrakis Modular is a concentrated liquidity management platform with $73M TVL, trusted by 100+ token issuers for automated market making on Uniswap V4, Aerodrome, and other DEXs. Its B grade reflects well-audited smart contracts (ChainSecurity, Sherlock, WatchPug) and established liquidity management expertise, with moderate risk from the modular upgrade architecture that allows vault behavior changes.

The key risks identified for Arrakis Modular are: (1) Arrakis vaults use an upgradeable design where vault managers can change how your deposited liquidity is managed by activating new modules. While there are security delays and whitelisting requirements, a compromised vault manager could potentially redirect funds. (2) Your funds are actively managed in concentrated liquidity positions. Unlike passive LP, if the automated strategy misjudges market conditions, you could experience higher impermanent loss than a simple buy-and-hold approach. (3) The platform manages liquidity for 100+ token projects. A bug in the core framework could affect all vaults simultaneously, though multiple security audits mitigate this risk.

Arrakis Modular scores 26/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 5/20, Oracle Surface: 0/10, Documentation Gaps: 2/10, Track Record: 6/15, Scale Exposure: 3/10, Regulatory Risk: 4/10, Vitality Risk: 3/10. The highest risk area is Track Record at 6/15.

Among 68 rated DeFi protocols on Hindenrank, Arrakis Modular ranks #4 by safety (lowest risk score = safest). Its 26/100 risk score and B grade place it among the safer DeFi protocols.

Arrakis Modular scores 6/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.