Lending & Borrowing

Lending protocols face unique risks around liquidations, oracle dependencies, and interest rate mechanics.

Key Risks

  • Liquidation cascades during market volatility

  • Bad debt accumulation from underwater positions

  • Oracle manipulation to borrow against inflated collateral

  • Interest rate attacks exploiting utilization curves

Guards We Deploy

Liquidation Monitoring — Track liquidation events, detect cascades, alert on unusual liquidation patterns.

Oracle Health — Monitor price feed deviations, detect stale prices, flag manipulation attempts.

Bad Debt Detection — Identify positions with negative equity before they become protocol losses.

Utilization Alerts — Track pool utilization and interest rate spikes.

Case Study: Euler Labs

"Guardrail excels in price monitoring and price deviation by far compared to any of the tools in the market." — Erik Arfvidson, Head of Cybersecurity

Euler consolidated from 3 monitoring tools to 1, with automated guard updates for new vault deployments.

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