Protocol Due Diligence: [ Pearl Exchange ]

Overview + Links

Pearl is an Automated Market Maker (AMM) that brings deep liquidity for on-chain Real World Assets to Polygon. Pearl Exchange is a THENA fork. THENA's codebase was adapted from Velodrome codebase. On 1st of September 2023, Pearl had Total Value Locked (TVL) of 50M.

Rug-ability

Multi-sig:
None, Controller is owned by a timelock contract with 12 hours delay

Number of Multi-sig signers / threshold:
NA, admin of timelock is a 1 EOA acc which is the wild deployer
Upgradable Contracts:
None,but core factors like price oracle,collateral factors can be changed on controller
Decentralization:
Currently centralized with controller ownership being a centrally owned timelock contract

Misc Risks

[List any risks pertaining to things like: how yield is generated, governance, multisig, etc]

  • Price source for tokens is currently a UNIv3 oracle which fetches twap eth price for token * chainlink ethusd price for price data.
  • Wildcredit previously was whitehacked when they had a unprotected initialize function which allowed anyone to drain the lending pair funds.
  • There is a set borrow fee which will need to be covered overtime from the yield.
  • Rewarded WILD for borrowing would be routed through UniV3 to want upon harvest. In the wip strategy case i will be using 1Inch to swap the rewards for want.
  • The gas costs to lend or borrow are very high , there is a possibility tend and harvest will cost > 1k usd in gas costs based on the number of loops on a leverage/devleverage tx.

Audit Reports / Key Findings

[List links and any key findings]

Anything else

[Is the protocol a great fit with yearn for a specific reason? Do Yearn and the other protocol mutually benefit?]

Path to Prod

Strategy Details

  • Description:
  • Strategy current APR:
  • Does Strategy delegate assets?:
  • Target Prod Vault:
  • BaseStrategy Version #:
  • Target Prod Vault Version #:

Testing Plan

Ape.tax

  • Will Ape.tax be used?: Yes
  • Will Ape.tax vault be same version # as prod vault?: Yes
  • What conditions are needed to graduate? (e.g. number of harvest cycles, min funds, etc):
    1 or 2 success harvest cycles with ySwap sell, no loss when increasing and decreasing debt

Prod Deployment Plan

  • Suggested position in withdrawQueue?: Front
  • Does strategy have any deposit/withdraw fees?: No
  • Suggested debtRatio?: Small
  • Suggested max debtRatio to scale to?: Small

Emergency Plan

  • Shutdown Plan:
  • Things to know:
  • Scripts / steps needed:
  • Is it safe to…
    • call EmergencyShutdown
    • remove from withdrawQueue
    • call revoke and then harvest
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