Weekly RiskDAO report 6 Dec ‘22

Weekly RiskDAO report 6 Dec ‘22

All referenced data can be accessed directly on the Vesta dashboard by RiskDAO.


Last week saw an attack on BSC-stablecoin $HAY, and its underlying Helio protocol (a Maker protocol fork). The exploit was preceded by an attack on staking protocol Ankr that saw the minting of 60 trillion aBNBc which is a reward-bearing receipt token for $BNB staked via Ankr’s platform on BSC. The freshly minted $aBNBc got dumped on PancakeSwap depegging the price from the underlying $BNB tokens.

Other attackers joined the exploit by buying large quantities of depegged $aBNBc on PancakeSwap and depositing them into Helio Protocol as collateral to borrow $HAY stablecoin. Helio’s oracle did not update the price, allowing the attackers to deposit overvalued collateral tokens.

$HAY was ultimately sold off and lost its USD peg. Two attackers were able to cash in $19m in profits.

Helio could have prevented the attack by using the $aBNBc DEX prices as the oracle for $aBNBc collateral but instead decided to reference $BNB prices for $aBNBc collateral. The infinite minting bug on Ankr was outside the control of Helio, but the oracle issue could have been prevented.

Vesta’s collateral base does not include third-party administered liquid staking protocols. The only derivative asset is $gOHM whose price is directly referenced by the oracle.

Dashboard Highlights

The cap utilization of gOHM and sGLP remain significant at 91.2% and 99.1% respectively.

“VAR on Worst Day” has come down to $1.8k mainly from the gOHM vaults. This means that Vesta Protocol would accrue $1.8k in bad debt, if ETH re-experienced its worst historical price drop. According to this worst day scenario, our risk model suggests to increase the minimum collateral ratio by 5 percentage points from 150% to 155% for the gOHM vault. Given the small amount of potential bad debt and relatively minor difference, we suggest to keep monitoring the vault w/out any additional adjustments for now.

$VST weight of the VST-FRAX pool remains at 66%.

gOHM remains the #1 collateral asset accounting for $14.4m or 59% of total collateral base, followed by sGLP ($6.9m or 28%).


I have no objections to raising the minimum CR from 150% to 155% for gOHM given RiskDAO’s analysis. Thank you for keeping the community informed.