Node Network
General overview of off-chain engagements for on-chain contracts.
Reliance of off-chain components
Teller nodes
The terms created for a loan are calculated by nodes off-chain. Because of this, there is the risk of relying on these nodes to cooperate and correctly determine critical loan definitions such as interest rates and maximum loan amounts. If a small number of nodes misbehave, the system is able to recover through it's consensus protocol.
Some risks to consider:
A low interest rate is incorrectly calculated.
The maximum loan amount is incorrectly calculated.
The protocol has in place additional safe guards, such as:
Not allowing a loan above a defined soft-cap.
Price oracles
We use price oracles to determine the amount of collateral the owner of a loan is able to withdraw from the contract. When dealing with oracles, contracts that use them are only as reliable as that oracle contract that is feed the on-chain data. If for some reason incorrect data has been feed to the oracle, the amount calculated that a user can withdraw may also be inaccurate. We do everything we can to ensure the security of our users' funds but users must be aware of the risk when dealing with on-chain price oracles.
If for some a price oracle becomes compromised, we are able to upgrade the oracle contract address that is used.
Last updated