Below is a structured risk framework of the OADA V2 system
Risk: Collateral crashes too fast for auction to clear at profitable levels, sOADA accrues losses.
Mitigants:
Conservative LTV settings
Exponential price decay model encourages early arbitrage
Dutch auctions sell over 24 hours
Many assets initially restricted (SNEK only)
Risk: Attackers borrow during the refinancing window to block large borrowers.
Mitigants:
Automatic credit expansion
Whitelisted lending caps per asset
Reserve capacity for manual interventions
ODAO treasury backstop
PSBT based bespoke refinancing
Risk: Too much OADA supply relative to ADA reserves making OADA trade below 1 ADA.
Mitigants:
Ability to force contraction (no refinancing)
Max loan durations guarantee bound on deleveraging timeline
Strong arbitrage incentives when OADA breaks peg
Risk: Interest rates, caps, and parameters controlled off-chain; governance coordination failures.
Mitigants:
Only ODAO governance may change core parameters
Sequencer cannot seize collateral
Multisig controlled upgrades
FluidTokens V3 lending architecture
Complex AMO logic (DEX, liquidations)
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