Risks

In MORE, users enjoy permissionless access to digital asset liquidity, but participating in an open system always carries certain risks. Below is an overview of key risk areas and the measures that help maintain a secure environment.

Smart Contract Vulnerabilities

Because MORE relies on on-chain code for its core operations, there’s a risk of software bugs or potential loopholes within both the protocol logic and any tokens it supports. To mitigate these threats:

• All critical contracts are publicly accessible open-source code, allowing developers and security experts to examine the code in detail.

• Periodic audits by independent security teams help spot issues before they can be exploited.

• By incentivizing the community to discover and disclose bugs, MORE encourages proactive fixes and improvements through bounties.

Oracle Risk

Price data for the underlying collateral and loan assets is supplied by third-party oracles, which introduces the possibility of incorrect or manipulated values.

MORE is oracle-agnostic, but works out-of-the-box with Chainlink and Pyth, both respected protocols that source diverse data and provide robust resistance to single points of failure. Users should verify the oracles used in markets before depositing.

Collateral Fluctuations

Variations in asset prices or liquidity can cause positions to become undercollateralized. Certain metrics like loan-to-value (LTV) and liquidation thresholds ensure positions remain sufficiently backed. Market creators or automated monitors track collateral performance, suggesting parameter adjustments to keep the protocol healthy. They can adjust these parameters as conditions evolve, preventing severe imbalances.

Multi-Network and Bridge Exposure

MORE Markets accept deposits and withdrawals through Layer 0 and Axelar bridges. The protocol itslef, however, is not yet deployed on multiple blockchains. Each cross-chain bridge has its own security profile and potential bottlenecks.

To mitigate these risks new networks or bridges undergo thorough testing and review before being integrated, ensuring that subpar infrastructures are excluded. Any protocol expansion or deployment on additional chains is done with community visibility, giving users insight into potential risks and benefits. Continuous monitoring of throughput, censorship resistance, and known exploits within each blockchain or bridge helps the protocol maintain safe entry points.

Risk & Innovation

MORE seeks to provide a permissionless environment for liquidity, but responsible risk management for the core contracts is key to sustaining trust and functionality for all market creators and depositors. Comprehensive audits, reliable oracles, strict collateral requirements, and secure cross-chain messaging ensure the protocol works to mitigate potential pitfalls.