Granary

Lending

Granary is a cross-chain money market platform that is forked from Aave V2.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Granary is a money market platform forked from Aave V2 that initially launched on Fantom before expanding crosschain.
What we like less
The team is anonymous with a limited multisig and the protocol has not added any innovations to the Aave lending design.
What it means for you
Granary has integrated with third-party platforms like Stader and Reaper Farm to offer users additional protocol rewards for supplying liquidity.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $9.9M (Rank #146)
  • TVL Ranking by Lending: #31
  • Blockchain: Optimism, Metis, Arbitrum, Base, Avalanche, Fantom, Ethereum, Binance, Harmony, Linea
  • Chain TVL
    • Optimism: $6.56M
    • Metis: $2.05M
    • Arbitrum: $561K
    • Base: $496.43K
    • Avalanche: $229.49K
    • Others: $47.06K
Risk Assessment
Watch Out
Protocol Code Quality
  • Code not reviewed by any experienced auditors
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Bottom 80% by total value locked increases risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • No governance token and/or contracts are fully immutable
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • Cross-collateral markets are exposed to systemic risks as each asset creates incremental risks for the platform as a whole
  • Basic controls in place to prevent risky borrowing
  • Basic mechanisms in place to incentivize liquidations
  • Basic method to accrue protocol reserves
Things to know about Granary

How Granary works

Granary is forked from Aave V2. Granary consists of a decentralized system of lending pools. Users deposit assets they want to lend into a liquidity pool and borrowers draw from the pool when they want to take out a loan. Granary borrowers must first supply assets before they can borrow. Given the high volatility of crypto assets, borrowers must post more collateral than the value of the loan, or commonly referred to as overcollateralization. Interest rates on Granary are driven by market supply and demand. To facilitate this activity, Granary issues gTokens to lenders that reflect accruing interest on the underlying token.

How Granary makes money

Granary currently has two income streams. The first income stream comes from flash loans, which incur a 0.09% service fee. This service enables users to borrow any available amount of assets without posting any collateral, as long as the liquidity is returned to the protocol within the same transaction block. The second income stream comes from a reserve factor that allocates a share of borrowers' fees to the ecosystem reserve. Each supported asset has a reserve factor that determines how much goes into the reserve.

How you make money on Granary

You earn lending fees on Granary by depositing your idle crypto assets to be used by borrowers looking for leverage. For certain assets, Granary also offers additional protocol incentives in the protocol's native token to bootstrap demand.