Cog Finance

Lending

Cog Finance is an isolated lending platform on Scroll.

Chain
TVL
＄2.18M
Native token
N/A
Protocol key links
Website Gitbook Twitter

Risk Rating

High Risk

Assessment: 2024-04-02

Risk Assessment

Security History

Monitoring

Overall Score

42%

Alert

Assessor
Kop, Supergu
Assessment Date
2024-04-02

Not yet undergone Underwriting review

The protocol has its merits, such as the immutability of smart contract, absence of a native token reducing risks, and lower compliance risks due to legal adherence. However, it faces significant risks including single-point control via an EOA, lack of transparency in collateralization and APR setting, potential oracle manipulation, and concerns over operational transparency and strategic direction due to undisclosed team details and lack of decentralized governance or a clear roadmap.

Economic
Evaluate possible financial and economic risks depending on the project type (e.g., for lending, check the collateralization system), protection against CVEs (Common Vulnerabilities and exploits), oracle risks, and systemic concerns.

28%

The absence of a native token within the ecosystem eliminates associated token risks, ensuring a more stable operational environment.

There is no documentation available on their collateralization mechanism, and the APR desplayed on the frontend appears to be hardcoded.

The oracle can be set by the creator of the pool, resulting in potential risk of rug pull.

Operation
Look into the team's experience, track record, and project governance. Consider legal and counterparty risks that may impact the project.

35%

Low legal and regulatory risk promotes a favorable operational climate and reduces potential legal challenges.

The platform's operational transparency is limited due to the absence of publicly available information regarding team members and founders.

The protocol lacks decentralized governance and a roadmap for future development, raising concerns about its strategic direction.

Technical
Understand the security of the app, code quality, and controls in place. Check how well it was developed, tested, and reviewed by third parties.

58%

The smart contract is designed with immutable architecture, ensuring no upgrades can be implemented post-deployment.

The protocol has undergone a thorough audit with no serious unresolved issues, increasing reliability, even though the auditing firm is less recognized.

Some contracts are unverified on Etherscan, raising uncertainties about their authenticity compared to the audited versions.

The smart contract is managed solely by an EOA rather than a multi-signature wallet, emphasizing a single-point control mechanism.