Lower risk — 15 months incident-free with aggressive audit cadence and growing TVL, but AI models remain untested in a downturn and Earn V2 looping/hurdle-rate mechanics add new complexity
Risk Breakdown
Top Risks
Multi-strategy vaults deploy capital across Aave, Curve, Morpho, and EigenLayer simultaneously; hidden correlations between strategies mean diversification benefits evaporate during systemic DeFi stress events
Machine learning models optimizing vault allocations are trained primarily on 2024-2025 bull market data; models lack sufficient crisis-period training data to predict black swan behavior
Earn V2 introduces looping strategies and hurdle-rate mechanics not present in V1; new mechanism complexity has been audited but lacks the operational track record of the original vault architecture
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