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Yield-Bearing Vault (ERC-4626) Risks
Risks associated with using yield-bearing vault (ERC-4626) strategies
ERC-4626 was created to allow DeFi protocol developers to use a standard when creating yield strategies across multi-asset, multi-chain configurations. However, there are inherent risks to using Vaults that users should be aware of, including but not limited to:
  • Use of plugins could result in fuse pool risk, along with underlying protocol risk
  • Impermanent loss due to the pool’s token price volatility
  • Liquidity issues in riskier token pairs
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