Security
As Secure as AAVE V3
Pac Finance matches the security level of AAVE V3:
Supply and Borrow Limits: In Pac Finance V3, each asset reserve can now be configured with optional upper bounds on supply and borrowing. This helps reduce exposure to specific assets and mitigates risks associated with infinite minting or price oracle manipulation.
Siloed Assets: Assets with potential oracle manipulation risks can be listed as supply-only, meaning they cannot be used as collateral.
Variable Liquidation Close Factor: This allows for complete liquidation of a position as it approaches insolvency (Health Factor HF < 0.95).
Price Oracle Sentinel: Mainly targeting L2 solutions to handle potential downtime of sequencers by introducing a grace period for liquidations and disabling borrowing for a reserve under specific conditions.
Insurance Vault Mechanism
We place a high value on the safety of our users and the platform. To enhance this aspect, we are implementing a crucial safety measure: allocating 5% of the protocol's profits into a dedicated insurance vault. The establishment of this vault is designed to provide a safety net during extreme market conditions or unforeseen events. Should users' funds be at risk, the insurance vault will be utilized for indemnification and compensation, ensuring that users do not suffer significant losses due to unforeseen market risks.
Oracle
As a lending protocol, Pac Finance is committed to offering unparalleled security to its users by utilizing API3's First Party Oracles which are used to dictate whether borrows or liquidations are possible.
Audits
At Pac Finance, security is our top priority and we invest significant effort to create a safe and reliable protocol. The Pac Finance smart contract code are publicly verifiable and formally validated by top security firm.
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