Security
Security is paramount in DeFi protocols. Learn about CapyFi's security measures, audits, and best practices.
Security Audits
Professional security assessments
The CapyFi protocol has undergone extensive security audits by leading blockchain security firms. These audits examine the code for vulnerabilities, economic attacks, and edge cases.
Bug Bounty Program
Community-driven security
CapyFi operates a bug bounty program that rewards security researchers for finding vulnerabilities in the protocol. This program helps identify potential issues before they can be exploited.
Rewards are based on the severity of the vulnerability and can range from $1,000 to $1,000,000 USD.
Economic Security
Protecting against economic attacks
Liquidation Mechanisms
Automatic liquidation of undercollateralized positions prevents bad debt and maintains protocol solvency.
Interest Rate Models
Dynamic interest rates adjust based on utilization to incentivize balanced supply and demand.
Collateral Factors
Conservative collateral factors ensure sufficient backing for all borrowed assets.
Price Oracle
Where collateral and debt valuations come from
The Comptroller values collateral and debt through a per-network Price Oracle contract, queried on every liquidity check and liquidation. Internal sourcing, validation, and update mechanics are encapsulated by the oracle implementation rather than specified here — see Price Feed for the interface and per-network addresses.
The oracle is administered separately from the Comptroller and can be replaced via the Comptroller's _setPriceOracle path, which lets CapyFi upgrade price sourcing without migrating markets.
Best Practices for Users
How to use the protocol safely
Users should follow these security best practices:
- Always verify contract addresses before interacting
- Use official interfaces and trusted frontends
- Monitor your account health and collateralization ratio
- Keep some buffer above the liquidation threshold
- Be aware of market volatility and its impact on collateral values
- Never share your private keys or seed phrases
Emergency Procedures
Protocol emergency response
In case of security incidents, the protocol has emergency procedures:
- Emergency pause mechanisms to halt operations
- Administrator intervention for critical issues
- Community coordination through official channels
- Transparent communication about incidents and responses