Rabbit Finance
Safety Review | Protection of Rabbit Finance
Recently the DeFi ecosystem is facing some crisis of confidence, some projects have been attacked, which leads to capital loss for users, damages of project and communities. Many users want to know about the safety protection of Rabbit Finance. This article will introduce how Rabbit Finance ensures contract safety, how to defend flash loan and how to ensure liquidation on time and accurate.

Authoritative smart contract audit ensures contracts operate safely

Rabbit Finance is now audited by Certik and Chains Guard. The Rabbit Finance Team guaranteed to cooperate with the top safety partners when the project started. Current smart contract has already passed 2 audits with high scores by two world class audit institutions, CertiK and Chains Guard. There are still more audit cooperation and audit reports in progress.

All the smart contracts related to users' assets are time-locked

Timelock is a contract for delaying changes to the protocol. This contract is an owner of all the major contracts in Rabbit Finance. This is a security feature that enables the community to see any upcoming updates and prepare in advance for them. If anything looks suspicious, they can pull their funds from the protocol before the update takes effect.

Safety measures that avoid flash loan attack comprehensively

1, EOA restriction prohibits flash loan contracts from open position

Contracts of Rabbit Finance open to EOA (Externally Owned Accounts) only, which evades potential risks that attackers open a position to borrow massively for flash loan attack.

2, Liquidation Bot instead of liquidation bounty hunter, avoid flash loan from liquidation.

Rabbit Finance liquidates leveraged positions through liquidation bot instead of liquidation bot like some other projects. The goal of flash loan is to obtain profit, cutting the liquidation method, and reducing the risk of users being attacked by flash loan.

3, The maximum limit of positions cut the way of earning profits from flash loans long and short.

The maximum limit of positions in Rabbit Finance is more strict than other products, which avoids rapid fluctuation of token price caused by opening a large position. The maximum value of each position is strictly calculated according to the risk management algorithm and is highly relevant to liquidity of the trading pair, which avoids flash loan attackers manipulating prices by long or short.

The "Gemini Liquidation System" ensure accurate and safe liquidation

The liquidation strategy of some other products is, the oracle feed price and record it on the oracle contract, the price from oracle contract determine the liquidation price. But this liquidation strategy is not good enough, we have seen too many cases, in which users suffer from capital loss caused by Oracle failing to provide the correct price.
Rabbit Finance invented the Gemini Liquidation System, the oracle read and compare price from both DEX and CEX in a 1 minute time interval, when a position qualified to get liquidating for the first time, and the price difference from CEX and DEX is within 5%, then it will be listed in a liquidating waiting list, it will be liquidated only if the next price verification from oracle also proves this position is qualified for liquidation. The price verification from CEX is also double checked, the price is acquired from both Huobi and Binance, in this way, from which thoroughly avoids capital loss of users due to price verification not in time and inaccuracy.

Anonymous Project vs. Institutional Investor

After strict KYC and evaluation, Rabbit Finance is invested by 11 top institutions. This is an affirmation from top tier investment institutions, to the R&D ability and Industry experience of the team. Furthermore, the fast iterative ability and excellent product experience of the team surpass other products.
We can see, all the famous projects in the DeFi field are invested by top tier institutions. This is not only a proof of financial support the team has, but also secured a stable and long term operation of the project. On this point Rabbit finance differs from projects which are completely anonymous.
Last modified 3mo ago