Security
Security design, risk controls, and audits for leveraged vaults.
Leveraged Vaults are built with security as a core principle. They use audited, battle-tested components and a modular design that minimizes custom logic and reduces attack surface.
Security Design
Leveraged Vaults follow a modular architecture where each operation is isolated and clearly defined.
Key principles include:
Protocol-Native Integrations Looping strategies rely on audited lending protocols, flash loans, and decentralized exchange infrastructure rather than custom execution logic.
ERC-4626 Vault Standard Leveraged Vaults follow the ERC-4626 tokenized vault standard, ensuring predictable accounting and transparent share-to-asset conversions.
Modular Architecture Borrowing, looping, and unwinding are implemented as independent modules, reducing complexity and limiting blast radius in the event of an issue.
Minimal Custom Logic Superlend adds only the automation and configuration required to manage leverage. Core operations rely on well-tested external protocols.
Risk Controls
The vault enforces risk parameters at the smart contract level, including:
Loan-to-value (LTV) limits
Liquidation thresholds
Maximum leverage caps
These controls are designed to help prevent unsafe positions, but they do not eliminate risk.
User Safety Guarantees
Permissionless Withdrawals Users can withdraw or unwind positions at any time. The vault handles deleveraging automatically when required.
Non-Custodial Design Funds remain in non-custodial smart contracts at all times. Superlend never takes direct custody of user assets.
Audits & Reviews
All core Leveraged Vault contracts and strategy logic have been audited by Sherlock prior to deployment.
In addition:
Internal security reviews are conducted before releases
Protocol dependencies are reviewed before integration
Modules are monitored continuously after launch
Important Reminder
While security best practices and audits reduce risk, leveraged strategies remain inherently complex. Users should understand the mechanics and risks before depositing.
For more detail on how leverage works, see How It Works.
Last updated