Oracle-manipulation-proof borrow cap
Frax Finance's assessment for RD-F-073 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
Fraxlend uses Chainlink price feeds per pair (ETH/USD, USDC/USD, BTC/USD, LINK/USD, COMP/USD, AVAX/USD, UNI/USD confirmed from profile §7). Max LTV of 75% is immutable per deployment — a borrow cap proxy. No documented oracle-manipulation-resistant borrow cap formula (e.g., cap <= oracle pool depth x manipulation-resistance multiplier). June 2024 Egorov/CRV event: CRV fell 24%+ in one day; Fraxlend isolated pairs handled liquidations without bad debt, suggesting the 75% LTV and DDR mechanism was adequate for that stress. However, the liquidation bonus is 10% (fixed), and extremely rapid price declines could theoretically exhaust the 25pp collateral buffer before liquidators can clear. Yellow: no formal oracle-manipulation-proof cap formula documented; 75% LTV provides meaningful buffer but is not calculated from oracle liquidity depth.
Sources #
- URLCurve Finance Founder Suffers Massive Liquidations — The DefiantThe Defiant: Egorov CRV liquidation June 2024; Fraxlend zero bad debt statement; CRV -24% single-day stress test passedretrieved 2026-05-17
- Position Health & Liquidations | Frax FinanceFraxlend docs: max LTV default 75% (immutable at deployment); liquidation fee 10% default (immutable); Chainlink oracle dependencyretrieved 2026-05-17
- Frax Finance Protocol Profile §7 Key External Dependencies00-profile.md §7: Chainlink feeds listed — ETH/USD, USDC/USD, USDT/USD, BTC/USD, LINK/USD, COMP/USD, AVAX/USD, UNI/USD (multiple aggregator addresses per asset)retrieved 2026-05-17
Methodology #
Determine whether the per-asset borrow cap is ≤ (oracle pool depth × manipulation-resistance multiplier).
See the full factor methodology and distribution across all protocols →