LayerBank

Lending

LayerBank stands as a permissionless, non-custodial DeFi lending platform, offering a stable crypto money market service across the omni-chain environment. It primarily facilitates loans using assets such as BTC, ETH, and USDC as collateral, providing a bridge for users to lend to one another.

Chain
TVL
＄1.36M
Native token
N/A
Protocol key links
Website Gitbook Twitter

Risk Rating

High Risk

Assessment: 2024-04-01

Risk Assessment

Security History

Monitoring

Overall Score

48%

Alert

Assessor
Kop, Supergu
Assessment Date
2024-04-01

Not yet undergone Underwriting review

This DeFi project demonstrates strong security, with verified smart contracts deployed on a testnet and a design similar to Aave's, suggesting careful planning. However, risks include potential system malfunctions due to missing test scripts, security concerns from EOA-managed administration, and doubts about using Chainlink due to private oracle variables. Low token market cap and team anonymity also pose risks to liquidity and transparency, while an inactive DAO raises governance concerns.

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.

54%

The architecture and risk parameters being similar to those of Aave indicate a well-considered design.

The privacy of the oracle variable raises concerns regarding the claim that Chainlink is being used as the oracle.

The native token's low market cap could negatively impact the protocol’s yield due to the extra market risk.

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

45%

The protocol enjoys a sizable and active community on platforms like Twitter and Discord, supporting user engagement and feedback.

It faces relatively low legal and regulatory risks, potentially easing operational hurdles.

The anonymity of the team raises concerns about the transparency of the team members' identities.

Although the documentation indicates the existence of a DAO, there are no real proposals in place.

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.

43%

The immutability of the smart contract eliminates potential risks associated with unauthorized modifications.

The protocol has an available audit report with no serious unresolved issues, ensuring a degree of security and trustworthiness.

The protocol lacks comprehensive documentation on source code, development history, and access control, which complicates oversight and transparency

The assignment of contract administration to an EOA presents potential security risks.