ANT Risk Analysis
Updated 9/1
ANT is the governance token of the Aragon Network a smart contract system to manage unstoppable organizations on the blockchain in an efficient and decentralized manner. Aragon is now one of the most popular architecture for DAOs, with the system securing $350m of assets.
ANT Smart contract Risk: D
The ANT token started migrating to its V2 in October to enhance functionalities and reduce gas costs. Holders are slowly migrating which results in little battle testing of the token; yet ANT is a fork of uniswap liquidity shares which have been tested.
A technical smart contract review has identified a multisig retains control over minting - this is problematic for listing on the Aave Market covered by the Safety Module.
ANT Counterparty Risk: C-
Aragon Network is a permissionless DAO system where ANT holders vote on proposals. There are currently nearly 20,000 holders of ANT but only a minority has migrated to V2. Furthermore Aragon Network provides the decentralised infrastructure:
- Aragon Govern which allows anyone to create their own DAO
- Aragon Court a decentralised oracle solution.
The control over the minting retained by a multisig results in a low Trust.
ANT Market Risk: C +
The ANT token has experienced high volatility this summer but has since been less volatile than the rest of the market. The token is traded on the top exchanges and has good volume.
Risk Parameters
LTV 55%
Liquidation Threshold 60%
Liquidation Bonus 15%
Reserve Factor 35%
Variable Interest Rate Model ~ Collaterals
UOptimal 45%
R_0 0%
R_s1 7%
R_s2 300%