Thread by @DeltaPrimeDefi

Guard!

We have been distributing insane yields for our depositors, ever since we launched in January.

But you are not only concerned with having high profits. There is one factor even more important.

Is it safe?

🧵1/15

Let's look at these 5 safety mechanisms in DeltaPrime, and their function in the protocol.

Safety mechanisms discussed:

- Escrow contract
- Solvency checks
- Oracle
- Withdrawal guard
- Audits

Escrow Contract

What is it?

On DeltaPrime we use an Escrow smart contract, the DSC (Dedicated Smart Contract), to send collateral and borrowed funds to.

This is your personal smart contract that, similarly to your wallet, holds your assets. It is controlled by you.

Safety features are put in place to prevent malicious actions and provide security. The two most important features are:

- (Active) value is being tracked and gets liquidated when necessary
- Funds can only be sent to whitelisted addresses

A walled garden🧱🌿🧱

Solvency Checks

On top of this, any action performed with your Prime Account (the account controlling the DSC) will revert if it doesn't pass the solvency check.

This is a mechanism at the end of every action that makes sure your account is solvent at the end of the action.

If any action would leave your account insolvent, it gets reverted.

❌No to reentrancy (additionally ofc a non-reentrant method in every function)
❌No to accidental self-liquidations
❌No to any other malicious actions leaving your account insolvent

Oracle

For a protocol like DeltaPrime, having accurate pricing is Crucial.

Every action that can decrease the value of Prime Account’s portfolio is checked against market price feeds. That all derivatives (eg LP) to project the protocol against flash loan and reenttancy attacks

The price feeds are taken from multiple price sources (CEXs, DEXs from multiple chains) and controlled for suspicious market behaviour (like price spikes that indicate market manipulation).

Withdrawal Guard

The withdrawal guard negates any unauthorized withdrawals in case of price manipulation.

There are many ways in which we protect against price manipulation (read docs.deltaprime.io/protocol/safety for the full list).

Yet the Withdrawal Guard is the most definitive one

In order to withdraw funds from your Prime Account as a borrower, you first need to have your borrowed assets ready in your DSC.

You have 1 #AVAX worth a million dollars in your account?

And you only want to withdraw 100 borrowed #USDC ?

Not good enough🫡

To withdraw anything, you need the borrowed assets ready in your account, irrespective of their value.

So even if you do manage to manipulate prices (eg through a flash loan attak) it won't bring you anywhere.

More about this unique safety feature here:

https://twitter.com/DeltaPrimeDefi/status/1608489715279486976?s=20

Audits

DeltaPrime is made for scalability.

We were buidling for over 18 months before we finally launched on the 10th of January this year.

What took us so long? Extreme scalability. Where integrations tend to take time, we deployed a new value-bomb every 2 weeks since launch

Since launch in January we have integrated:

- @yieldyak_ Yak Swap
- @GMX_IO $GLP
- #BTC.b, #USDT, $ETH pools
- @vector_fi autocompounding pools
- @DeltaPrimeDefi Debt Swap

All of this wasn't possible without proper preparation and the four(!) audits we have done so far.

Our next batch of upgrades is as good as ready, but before we release them (gradually), there is one element left.

Audit #5.

Of course this is a subset of safety features of DeltaPrime. Want us to dive into a different feature, or dive deeper into one of the features mentioned above? Let us know below✊

Safety first🧷