Risks of using STBL

General Risks

General risks include market risks, operational risks, and risks associated with the volatility of the underlying assets. The value of the STBL tokens can fluctuate based on market demand and the value of the metals they represent.

It's important to understand that while staking and trading STBL can offer potential rewards, it also involves significant risks that should be carefully considered.

Smart Contract Risk

The STBL platform relies on smart contracts deployed on the TON blockchain. While these contracts are designed for security, they may still be vulnerable to bugs and exploits. An exploited smart contract could lead to the loss of staked tokens or other assets.

Regular audits and updates to the smart contracts are performed to minimize these risks, but users should still be cautious and informed.

Mechanism / Economic Risk

An economic exploit could occur if an attacker manipulates the incentives of the protocol to their advantage, leading to potential losses for other participants. This could involve price manipulation of the underlying metals or exploitation of the staking mechanisms.

Toxic Token Risk

If a token within a liquidity pool becomes "toxic" (e.g., due to a loss of value or a security issue), it can impact the entire pool. STBL pools must be carefully monitored to ensure that all constituent tokens remain stable and reliable.

DeFi Composability Risk

STBL's integration with other DeFi protocols within the TON ecosystem introduces composability risks. If one protocol fails or is exploited, it could have a cascading effect on STBL and its users.

DAO Governance Risk

Decisions made by the DAO governing the STBL protocol can significantly impact the platform. There's a risk that governance decisions may not always align with the best interests of all users.

Flash Loans Risk

Flash loans, while powerful, can also be exploited to manipulate the market or drain liquidity from a protocol. STBL must remain vigilant against these types of attacks.

Mutable Pool Attributes Risk

Some pools may have attributes that can be changed, such as swap fees or constituent tokens. If these attributes are changed maliciously, it could impact all LPs in the pool.

Join/Exit Risk

Joining or exiting a liquidity pool can result in significant slippage or high gas fees, especially during periods of high network congestion. This can reduce the overall returns for LPs.

Impermanent Loss Risk

Impermanent loss occurs when the value of tokens inside a liquidity pool diverges from holding them separately. This is a significant risk for LPs in volatile markets, and must be carefully managed.

User Interface Risk

The STBL platform relies on user interfaces that interact with the underlying smart contracts. If these interfaces are compromised or malfunction, users may be unable to access their funds or interact with the protocol as intended.

Regulatory Risk

The regulatory environment for DeFi is still evolving. Changes in regulation could impact the operation of the STBL platform, including restrictions on its use or requirements for compliance.

Pool Type Risks

Different types of liquidity pools (e.g., weighted pools, stable pools) have their own unique risks. It's important for LPs to understand the specific risks associated with the pool types they choose to participate in.

Layer 2 Network Risks

STBL operates on the TON network, which introduces specific risks related to Layer 2 solutions. These include potential security vulnerabilities, bridging risks, and centralization concerns.

Users should be aware of these risks and understand how they may impact the security and performance of the STBL platform.