Smart Contract Risks

Using smart contracts in DeFi always comes with inherent risks. Here are some of the key risks associated with Solomon DeFi Vault, and what we are doing to mitigate them:

Contract Logic Flaws:

• Even with thorough reviews, there’s always a risk that a flaw in the contract logic could lead to unintended behavior. To mitigate this, we are employing rigorous testing procedures, including unit tests, integration tests, and simulations of various market conditions.

External Dependencies:

• Our contracts may interact with external protocols or oracles, which introduces dependency risks. If an external protocol or oracle is compromised, it could impact our contracts. We carefully select our dependencies and are working to minimize the reliance on external services where possible.

Upgrade Risks:

• If the protocol undergoes an upgrade, there’s a risk of introducing new vulnerabilities. To manage this, we plan to implement upgrade mechanisms that require multi-signature approvals and extensive testing before deployment.

Transparency:

• We believe in transparency and will make our audit reports, internal reviews, and security practices public once available. This allows users and the community to scrutinize and trust the protocol.

Example Comparison:

• Pendle: Pendle has undergone multiple audits and has a bug bounty program, which is a direction Solomon DeFi Vault plans to take. By making audits and security practices public, Pendle builds trust within its community—a practice we aim to emulate.