Security Risk
As Tren Finance works with varied asset types including LP tokens, money market deposits, and LRTs, a high level of importance is put on the technical security of each asset. While the technical risk analysis process does comprise of purely technical elements, there are many elements that require both qualitative and technical viewpoints.
The tech team at Tren Finance will conduct smart contract reviews to gauge the security of the underlying code of an asset. As a part of this process, the team will review smart contract audits conducted by respected auditors in the space, on top of conducting internal reviews.
To gauge the security of an asset, as shown in the risk methodolgy table, the total number of on-chain holders, and transfers is also taken into account. These factors provide a viewpoint on how much the smart contract has been used, and by how many users. In general, the more that a smart contract has been used, the safer it is. The security review process also encompasses a large portion of the centralisation risk review process below.
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