As you may know about the Iron Finance incident on June, 2021, once the CoUSD price falls below peg, there is a potential of a "death spiral" to collapse.
We believe one of the key points is anti-bots. To prevent bot activities, we have time following delay logics as Circuit Breakers. All Circuit Breaker mechanisms are subject to change based on the vote at the DAO. Until the DAO starts, solely the development team will make adjustments.
The Coffin reward farm has cooling down time to avoid mass sell pressure at one time.
- Harvest Interval: 6 hours by default. (Depending on the pool.)
- Withdraw lockup: (Depending on the pool.)
Some pools on our V2 farms have withdraw fee logic. It does not apply to all users, only to users who want to withdraw earlier than the stated withdrawal lock. By default, initial withdraw fee starts from 7%, and it will then be decrease by 1% each day.
Fortunately, so far Fantom Opera has shown less risk than other chains in terms of flash loan attacks. However, as Fantom Opera becomes more popular, the risk will increase.
To prevent a flash loan attack, Coffin Finance has deployed a redemption delay. Initially, it will start at 300 seconds. As of 18 Nov, we have changed it to 1200 seconds temporary to prevent bad arb opportunity.
Iron Finance on Polygon & Frax Finance on Ethereum also have both 1 block for redemption delay, by default.
One block of Polygon takes about 2 seconds as of August 2021. In Ethereum, it is about 13 seconds. We believe it's not enough.
To prevent flash loan attacks, we believe it's better to have more than enough redemption delay.