Protocol Risks
Risks intrinsic to the design.
- The flywheel requires activity. A token nobody trades funds nothing.
- Wrapping is voluntary. If nobody wraps, the claim has no holders and the Stockpile has no purpose.
- Non-rebalancing can concentrate the Stockpile in a single asset.
- Fee parameters may be wrong. Too low starves the Stockpile; too high suppresses the activity that funds it.
- The protocol has no revenue source independent of its own usage.