Homora V2

Homora V2 receives a C+ risk grade (40/100) from Hindenrank, where lower scores indicate lower risk. 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.

The key risks identified for Homora V2 are: (1) 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. (2) 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. (3) 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.

Homora V2 scores 40/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 8/20, Oracle Surface: 5/10, Documentation Gaps: 4/10, Track Record: 9/15, Scale Exposure: 5/10, Regulatory Risk: 4/10, Vitality Risk: 2/10. The highest risk area is Track Record at 9/15.

Among 68 rated DeFi protocols on Hindenrank, Homora V2 ranks #43 by safety (lowest risk score = safest). Its 40/100 risk score and C+ grade place it in the middle tier of DeFi protocols.

Homora V2 scores 9/15 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.