Yield Risk Engine V1 & V2
Our yield risk engine is designed to put a static cap on how much a yield asset can appreciate over time. It's designed to reduce risk exposure to inflation attacks where users are able to donate to an ERC-4626 vault and artificially increase the value of a vault token in order to borrow more against it. This type of attack happens quite frequently. The yield risk engine was designed in collaboration with Gauntlet.
Disclaimer: No risk strategy can 100% protect against any type of attack. This risk engine should be considered a part of a broader risk strategy - we provide absolutely no warranty of effectiveness.
Navigate to the contract on HyperEVMScan
Check the current creationFee. This is the amount in the native token (in this case HYPE) that it will cost to spawn a new Yield Risk Engine.
Accept Terms - write to this tx to signify your acceptance of our disclaimer
Write a "Create" Tx. In this case the user is using one of our ERC-4626 vault price feeds, and paying 6 HYPE to create the yield risk engine. The cap they've chosen is 20%.
Done! You've spawned a new chainlink-interface-compatible yield risk engine which should cap the value of the asset to 20% over time.
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