We do take security seriously and have spared no resources in order to ensure that the protocol matches the highest security standards. The smart contracts have been designed to be safe and secure from the very start, and underwent professional audits. However, there is no insurance provided in case an unknown bug or exploit is found.
Depositing funds into GoodGhosting does not come without risks. Before making a deposit, it is best to research and understand the risks involved.
As with all decentralized finance (DeFi) products, there are inherent dangers, including those related to smart contract vulnerabilities. The risks include, but are not limited to:
Smart contract issues and/or exploits with the GoodGhosting saving pool [Ref]
Smart contract issues and/or exploits with the Aave v2 lending protocol [Ref]
Smart contract issues and/or exploits with the Moola v2 lending protocol [Ref]
Slippage and Price Impact when using Automated Market Makers (AMM) like QuickSwap [Ref]
Smart contract issues and/or exploits with the QuickSwap exchange protocol [Ref]
Systemic issues and/or exploits with the stablecoins used (e.g. DAI from MakerDAO) [Ref]
Systemic issues and/or exploits with the blockchain used. E.g. Polygon PoS chain [Ref] or Celo [Ref]
We also strongly recommend to read the technical details described in the Game Mechanics & Technical page. Especially, the risks inherent to the somewhat centralized power available to the Admin Functions of the GoodGhosting contract.
Please only risk funds you can afford to lose!
To learn more about the risk in decentralized finance, we can recommend following publications:
Meegan 2020 - Identifying Key Non-Financial Risks in DeFi on Ethereum Blockchain.pdf
Jensen & Ross - 2021 - Managing Risk in DeFi - SSRN-id3745568.pdf
To limit the impact of a potential unfortunate security incident, the amount of funds that can be deposited in our first savings pools will be capped.