Risk of using Eywa
Last updated
Last updated
Providing liquidity on Eywa pools doesn't come without risks. Before making a deposit, it is best to research and understand the risks involved.
Eywa smart contracts were by and
However, it’s important to note that security audits cannot completely eliminate risks. Avoid supplying your life savings, or assets you can’t afford to lose, especially as a liquidity provider to Eywa.
Using Eywa as an exchange user should generally be less risky, but it is important to note that this is not financial advice.
Eywa employs Multisig to enhance the protocol’s security. Multisig manages the key parameters of the protocol and includes Eywa team members, as well as external individuals and organizations. A decision is considered accepted when at least 5 out of 7 participants have signed the Proposal. Any decision that affects changes in key protocol parameters is made through Eywa Multisig.
If the Eywa consensus is compromised, there is a risk of liquidity being stolen from Eywa Portal smart-contracts across supported networks. This scenario would result in a devaluation of the s/e-tokens backed by that liquidity.
In the event that one of the stablecoins in the pool significantly falls below the peg of 1.0 and fails to return to the peg, it would effectively mean that pool liquidity providers have most of their liquidity tied up in that currency.
When staking, you are utilizing multiple smart contract products, each of which carries its own risks.
Please carefully read this before accessing, interacting with, or using the Eywa Protocol (hereafter "the Protocol") software, which includes the Protocol technology stack, particularly its smart contracts.
It is important to associated with each pool.