Will my funds be lost?

As a non-custodial system, all the tokens sent to the protocol will be held and managed algorithmically without the interference of any person or legal entity. That means your funds will only be subject to the rules set forth in the smart contract code, which is being audited by MoveBit and OtterSec.

There are two scenarios under which you may lose a part of your funds:

  • You are a borrower and your collateral in SUI is liquidated. You will still keep your borrowed BUCK, but your collateral will be used to compensate Tank depositors.

  • You are a Tank depositor and your deposited BUCK is used to repay debt from liquidated borrowers. Since liquidations are triggered any time borrowers’ collateral drops below 110%, you will receive more SUI in return with a very high probability. However, if SUI decreases in price and you maintain exposure, you may lose value in your total pool deposits.

Are Flash Loans Safe?

There are several ways to prevent flash loan attacks from being successful. One of the most effective is to implement circuit breakers, which are automated mechanisms that halt trading on a platform if certain conditions are met, such as a sudden drop in liquidity or a large price movement.

Circuit breakers can prevent flash loan attacks by preventing large price movements from occurring, which can make it more difficult for attackers to manipulate the price of an asset. Other measures, such as increasing the cost of flash loans or implementing time delays, can also make flash loan attacks less attractive to attackers.

In addition, DeFi platforms can also improve their security by conducting regular audits and implementing best practices for smart contract development. This can help to identify vulnerabilities and prevent attackers from exploiting them.

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