Risk
The risks of cross-chain vaults
A bridge is a third system. It is not a footnote on the destination chain.
- 01Native asset
- 02Bridge
- 03Representation
- 04Destination vault
A third system
Moving an asset to another chain inserts a bridge, a representation and a new set of administrators. The vault on the destination does not inherit the security of the asset’s home chain. Canonical and third-party bridges are not the same product.
Do not merge the books
Bridged USDC and native USDC should not be added into one TVL as if they were identical. A depeg of the representation is a different event from a depeg of the issuer’s asset.
Unsupported routes
If a route is not verified, it stays dark. This demo does not imply any cross-chain path is safe, live or endorsed.
Digital assets and DeFi protocols are high risk. You may lose some or all of the assets you deploy. AltVaults DeFi provides software, data and informational tools. It does not provide investment advice, recommendations, brokerage, custody, fund management or guaranteed returns.