Moderate risk — proven vault infrastructure with curator trust dependency, balanced by modular architecture and ERC-7540 standard foundation.
Top Risks
1
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.
2
Asynchronous vault model (ERC-7540) means deposits and withdrawals are processed asynchronously by curators, introducing delay and trust assumptions around timely settlement.
3
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.
4
Multiple independent curators deploy strategies autonomously, creating fragmented risk profiles that depositors may not fully understand when entering a vault.
Risk Breakdown
Frequently Asked Questions
Is Lagoon safe to use?
Lagoon receives a B- risk grade (33/100) from Hindenrank, where lower scores indicate lower risk. 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.
What are the main risks of using Lagoon?
The key risks identified for Lagoon are: (1) 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. (2) 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. (3) 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.
What is Lagoon's risk score breakdown?
Lagoon scores 33/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 6/20, Oracle Surface: 5/10, Documentation Gaps: 4/10, Track Record: 3/15, Scale Exposure: 5/10, Regulatory Risk: 4/10, Vitality Risk: 3/10. The highest risk area is Oracle Surface at 5/10.
How does Lagoon compare to other Yield protocols?
Among 112 rated Yield protocols on Hindenrank, Lagoon ranks #40 by safety (lowest risk score = safest). Its 33/100 risk score and B- grade place it in the middle tier of Yield protocols.
Has Lagoon ever been hacked or exploited?
Lagoon scores 3/15 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.