Why is the USDbC Safety Score 69/100?

The score is calculated based on asset stability, protocol audit history, and chain security, then adjusted for liquidity depth ($82,414) and utilisation rates.

Safety Audit: USDbC on Compound V3

Baseline Composition 76.67 pts

USDbC

Asset Strength

Compound V3

Protocol Trust

Base

Chain Security

We start with a weighted average of the asset, protocol, and chain reputation scores.

Safety Score Calculation Methodology

Base Score (Typically 60-80 pts)

Weighted Average Formula:
Base = (Asset Score × 0.4) + (Protocol Score × 0.4) + (Chain Score × 0.2)

Risk Penalties

Low TVL (<$1M): -5 to -15 pts
Very High Util (>90%): -10 pts (withdrawal risk)
Extreme APY (>15%): -5 to -10 pts (volatility risk)
Smart Contract Risk: -20 pts if audits are outdated

Deep Dive DeFi Risk Audit Report

Risk vs. Reward Ratio

Offering a yield of 1.70% with a safety score of 68.67/100 Investors are essentially insuring the protocol against failure; ensuring the premium (APY) matches the risk is crucial.

Capital Fluidity

Operating at 42.53% efficiency, the lending market for USDbC is functioning as intended. There is ample buffer for withdrawals while still generating consistent interest for suppliers. High utilisation can lead to 'frozen' funds. Conversely, Boasting $82,414 in secured assets, the pool demonstrates sturdy health. A TVL of this magnitude suggests that the smart contracts have withstood the test of time and attracted significant yield farmers interest., ensuring that under normal market conditions, withdrawals remain fluid.

Chain-Specific Risks

Operating on Base, this pool inherits the underlying consensus security of the network. We factor in the centralisation ratio of the chain itself into the final Safety Score.

Understanding DeFi Risks

What is Smart Contract Risk? Smart contract risk refers to the possibility of bugs or vulnerabilities in the code governing the protocol. Even audited protocols can suffer exploits if unforeseen vectors are discovered.

What is Financial Risk? Financial risk involves market factors like liquidity crises (inability to withdraw) or asset de-pegging. Our score penalizes low liquidity pools to account for this.

Is the Safety Score a guarantee? No. The score is a probabilistic assessment based on historical data and current metrics. It cannot predict "black swan" events or zero-day exploits.

Data Source: Internal indexer. Active Tracking verified at: 04 Dec 2025, 12:05 UTC.
Disclaimer: This audit is an automated analysis tool for educational purposes. Smart contract risk is never zero. Always conduct your own due diligence (DYOR) before depositing funds. Terms of Service apply.

Risk Audit