Pumpy
Search…
Risks
In the space of crypto, especially in the Decentralised Finance (DeFi) space, users have to understand the risks of projects and smart contracts before venturing into DeFi. We call this DYOR (do your own research).
General DeFi Risks
DeFi risks encapsulates a wide range of risks such as impermanent loss to risks of falling for scams such as wallet draining, private key being stolen, et cetera. Hence, DeFi users have to be careful themselves and learn to educate themselves constantly in this space. You can find a guide to keeping your funds SAFU here.
Smart Contract Risks
Smart contracts are innovative way for cryptocurrencies to interact with one another and with dApps (decentralised applications). However, due to the complexities that comes with smart contracts, certain smart contracts may be prone to hacks. We've mitigated this risk by equipping all smart contract with 24hr time-locks (except PMP rewards multiplier at 12hrs) and having reputable auditors to audit the entire project. You can find the audit report by [insert audit]
Fun Fact: Most of our vaults are operated using only 1 contract (not creating new contracts for each vault), so new vaults are created using the same construct (but with different constructors; which are the parameters/inputs to the contract). Hence, there is no need to worry about new contracts being created each time more vaults are added, thereby reducing the need for new audits constantly.
3rd Party Risks
Pumpy serves as a yield aggregator by providing vaults which auto-compounds rewards. However, vaults does not indicate any partnership or support by Pumpy. We've mitigated this risk by splitting the vaults into 'turbo' and 'non-turbo' based on the individual yield farm's reputability on the BSC space, of which 'turbo' vaults are considered more risky.
Last modified 9mo ago
Copy link