DegenPrime
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    • Degen Account separation
    • Asset whitelisting
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    • Protocol gatekeeping
    • Withdrawal Guard
    • 24-hour Time-Locked Withdrawal
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  1. Security

Withdrawal Guard

PreviousProtocol gatekeepingNext24-hour Time-Locked Withdrawal

Last updated 25 days ago

Protects against price & oracle manipulation

The Withdrawal Guard is a unique feature. It may require some time getting used to it, but it is easily one of the strongest security features on DegenPrime. The Withdrawal Guard allows to withdraw only if they have their loans fully covered with their available balance. No ifs, ands or buts.

How this is different from other protocols is that the others can be manipulated. If the perceived price of an asset is manipulated, malicious actors can abuse this by withdrawing more capital than they otherwise should - leaving the protocol with bad debt.

Degenerates be like: "That's a profitable trading strategy!"

Not on DegenPrime; the Withdrawal Guard prevents this. It will require Degens to have the same amount of tokens in their balance as the loan they have taken out.

Example

How this works in practice is the following. Jesse has deposited $50 USDC and borrowed 1000 AERO worth $400 in total ($0.4 each). Let's assume everything else fails, and AERO suddenly seems to be worth $0. This would make Jesse's debt $0 in total, meaning he could withdraw all his AERO - one would think.

That's where the Withdrawal Guard does his duty. During the withdrawal process, Jesse is stopped since he needs to have 1000 AERO in his account, before and after his withdrawal. When the funds are in the Degen Account, Jesse can borrow, swap, trade, LP, all without running into the Withdrawal Guard. It is only at the point that he wants to take profits that the Withdrawal Guard comes in.

Though the Withdrawal Guard may feel excessive and matching one's debt can seem like a hassle, it is one of the best defenses of DegenPrime.

Problems?

Are you trying to withdraw from the Degen Account, but you're having beef with the Withdrawal Guard? On this page of , we help you troubleshoot.

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