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Vane

Reference

Security and risks

Depositing in Vane involves risk, including the loss of principal. This page sets out the main risks as they are understood today. It is not exhaustive, and it describes a design that is final only at launch.

Smart-contract risk#

Vane is a set of smart contracts, and contracts can contain bugs or design flaws that lead to the loss or freezing of funds. The code is still in development and has not been deployed.

  • Audit status will be published before deposits open. An audit reduces risk; it does not remove it.
  • Permissions. The final permission model, including any admin or upgrade keys and who controls them, will be documented with the deployment. Any key that can change the contracts is a risk in itself.
  • Interactions. Vane depends on other contracts, including the stablecoins it accepts and the yield source. A failure in any of them can affect blades.

Stablecoin risk#

Blades are denominated in USD stablecoins, and the protocol returns stablecoins, not US dollars.

  • Depeg. A stablecoin can trade below its target, briefly or for good. A full return of principal in stablecoin units is then worth less.
  • Issuer controls. Issuers can freeze addresses or balances. A freeze affecting the protocol, the yield source or a depositor's own address can block funds.
  • Supported list. The list of supported stablecoins is a governance parameter and can change.

Yield-source risk#

Interest comes from a yield source whose venue will be announced before launch. See Yield source.

  • Losses. An exploit, bad debt or failure at the venue can reduce the principal held by the protocol.
  • Liquidity. The venue may be unable to return funds immediately. Part of the deposits is kept liquid to serve breaks and maturities, but if that is not enough, a break or a withdrawal can be delayed.
  • Rate changes. The rate is variable, set by the venue, and can fall to zero.

GIWA Chain and layer-2 risk#

Vane is built on GIWA Chain, an Ethereum layer 2 built with the OP Stack (see the GIWA documentation (opens in a new tab)). GIWA mainnet is not live yet, and Vane's deposits are planned to open at its launch.

  • Sequencer downtime. If the chain's sequencer stops or slows, transactions, including breaks and withdrawals, can be delayed.
  • Chain upgrades. The chain can be upgraded by its operators. Upgrades can change behaviour that Vane relies on and are outside Vane's control.
  • Bridge risk. Assets moved onto GIWA Chain through a bridge depend on that bridge's security, and moving assets back to Ethereum can involve a waiting period.

Redistribution is not reliable income#

Redistribution allocations exist only when other depositors break blades. They may be zero for a whole term. They are paid only at maturity and are forfeited if the receiving blade is itself broken. A $VANE boost increases a share of forfeited interest, not the amount forfeited. Do not count on allocations when planning; see Early break and redistribution.

Governance risk#

Term length, the protocol fee level and the list of supported stablecoins are governance parameters. A term change applies to new blades only. Other changes can affect future returns or the assets that can be deposited. Voting power may be concentrated in a small number of holders, who could then set parameters in their own interest. How governance works is announced at launch.

Phishing and impersonation#

Before launch, there is nothing to deposit into and no token to buy. Anything that says otherwise is not from Vane.

  • The only official source for $VANE and for contract addresses is @VaneGiwa (opens in a new tab) on X.
  • Before launch, this website never requests a transaction or a signature that moves funds. Connecting a wallet only personalises the simulator.
  • Never share a seed phrase or private key. No one from Vane will ask for it.
  • At launch, verify every contract address against the announcement on @VaneGiwa before approving any transaction.

Regulatory risk#

Laws on decentralised finance, stablecoins and tokens differ between jurisdictions and change over time. Regulatory action can affect the stablecoins Vane accepts, the yield source, GIWA Chain or access to the website. Users are responsible for complying with the laws of their own jurisdiction.

No guarantee of returns#

No interest rate is promised. Interest can be zero, redistribution can be zero, and principal can be lost. Every rate and amount on this site is illustrative and is not a forecast. Read the Disclaimer together with this page.