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Risk Audit

Scrutinising USDC on Aave V3 (Optimism)
MODERATE RISK
78

Baseline Composition 78.33 pts

USDC
Asset Strength
Aave V3
Protocol Trust
Optimism
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  • Smart Contract Risk: -20 pts if audits are outdated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 2.85% with a safety score of 78.33/100, this represents a balanced risk-return profile. Good safety with attractive yields - suitable for moderate risk tolerance. Investors are essentially insuring the protocol against failure; ensuring the premium (APY) matches the risk is paramount.

Capital Fluidity

The pool maintains an optimal utilisation equilibrium of 74.90%. This points to a healthy balance between borrowing demand and lending supply, ensuring yields remain competitive without compromising solvency. High utilisation can lead to 'frozen' funds. Conversely, The liquidity depth currently stands at $27,889,635. For potential entrants, this volume serves as a primary buffer against price oscillation, ensuring that typical retail exits can occur without impactful price deviation., ensuring that under normal market conditions, withdrawals remain fluid.

Chain-Specific Risks

Operating on Optimism, 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 Analysis by MooniTooki
Chief Data Architect @DeFiStar.io Follow on X for real-time alpha and risk updates.

Data Source: Internal indexer. Active Tracking verified at: 04 Dec 2025, 11:04 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.

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