What Is Solcats (MEOW)?
Cryptocurrency is an extremely risky investment, and there’s a chance you’ll lose more than you gain. Only invest money you can easily afford to lose, and don’t go into it with the expectation of getting rich. It may also be helpful to set investing limits for yourself. Smart contract issues with Iron Finance While audits and bug bounties can significantly mitigate risk, there will always remain an inherent risk with all smart contracts in DeFi.
Solcats Systemic (macro and general, market-wide) issues with the stable coins in the pool: If one of the stable coins in the pool goes significantly down below the peg of $1 and never returns to the peg, it’ll effectively mean that pool liquidity providers hold almost all their liquidity in that currency.
Solcats Storage Key Points
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
One of the greatest risks to the IRON Solcats as a whole is a bad actor who discovers a vulnerability in deployed smart contracts, and uses it to break the Protocol or steal from it.The very worst-case scenario is that the assets collateralizing Iron Lend are stolen and recovery is impossible. In this case, IRON would be under collateralized and likely lose its peg.
Audits and formal verification are either completed or in progress at the time of writing. However, even with auditing or formal verification, the mathematical modeling of intended behaviors may be incorrect, or the assumptions behind the intended behavior itself may be incorrect, leading to unintended consequences of one part or the entire Iron Finance protocol.
A black swan event
A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, severe impact, and the widespread insistence they were obvious in hindsight. Please note that this list of potential “black swans” is not exhaustive and not intended to capture the extent of such possibilities.
Solcats While no one solution is fail safe, the careful design of the Iron Finance Protocol (the Iron Lend Collateral Factor, Governance, Oracle Security, etc.) in conjunction with good governance (e.g., swift reaction in a crisis, thoughtful risk parameters, etc.) help to prevent or mitigate potentially severe consequences of an attack.
Unforeseen pricing errors and market irrationality
Oracle price feed problems or irrational market dynamics that cause variations in the price of IRON for an extended period of time can occur. If confidence in the system is lost, rate adjustments could reach extreme levels and still not bring enough liquidity and stability to the market. Solcats smart contracts are in the process of being audited. Please read more in the Audits page.
User Abandonment for Less Complicated Solutions
The Iron Finance Protocol is a complex decentralized system. As a result of its complexity, there is a risk that inexperienced cryptocurrency users will abandon the Protocol in favor of systems that may be easier to use and understand. While Solcats is easy to generate and use, newcomers might find the Protocol difficult to understand and navigate.
Although IRON is designed in such a way that users need not comprehend the underlying mechanics of the IRON Stable coin Protocol in order to benefit from it, the documentation and numerous resources consistently provided by the Iron Finance community help to ensure on boarding is as uncomplicated as possible.
Under performance of the Iron Finance DAO
Once it launches, should the Iron Finance DAO fail to adequately maintain itself, or make decisions against its own best interest, the future health of the Iron Finance Protocol could be at risk.ICE holders are Solcats lock ICE into blue ICE in order to receive a by-the-block dividend of fees collected by the Iron Finance Ecosystem and participate in the protocol’s governance, driving their own wealth and future.
Successful management of the system should result in sufficient funds for governance to allocate to the continued maintenance and improvement of the Iron Finance Protocol. Sometimes, following an audit, there may be updates to a smart contract. These changes will be thoroughly documented, but in the interest of risk disclosure, be aware of the audit date compared to the last time a contract was updated.