Risks and mitigations
Threats from Smart Contract Vulnerabilities
Every protocol based on smart contracts carries the risk of unexpected vulnerabilities or glitches in its code. Our smart contracts control the functionality of the YAA tokens, from their operations to issuance and transfers among users. Any weaknesses could potentially lead to unwanted access or misappropriation of tokens.
Mitigation Plans: Frequent and meticulous security audits, coupled with a competent internal team to promptly address any detected issues, can lessen this threat. Implementing an emergency pause function can also provide an option to temporarily halt all operations should severe security problems arise.
Failures in Oracle Systems
The oracle layer is paramount in processing and validating user-derived data. Any dysfunction or manipulation here can lead to unsanctioned rewards, incorrect data portrayal or the inability to correctly record genuine weight loss achievements.
Mitigation Plans: Employing reliable and secure third-party oracles, conducting regular audits, and establishing backup plans for oracle failures can ensure data integrity. Additionally, integrating a dispute resolution mechanism can help challenge and adjust oracle results when necessary.
Market Liquidity Concerns
Blockages in market liquidity can hamper the efficient operation of the token system, and impact the YAA and YGT tokens. Extreme market volatility or limited user engagement can influence overall liquidity, compromising trading efficiency and the functionality of the platform.
Mitigation Plans: By providing liquidity rewards, exploiting liquidity pools and forging alliances with other DeFi platforms, it's possible to maintain sufficient liquidity for the tokens.
Risk of Governance Attacks
Since YGT tokens bestow governance authority to holders, there lies a risk of governance assault, where an individual or group amasses a significant number of YGT tokens to manipulate decisions in their favour.
Mitigation Plans: Incorporating safety measures like limits on voting power and delegation of voting rights, and nurturing a distributed and involved body of YGT token holders can safeguard against such attacks.
Regulatory Risks
Like all other blockchain-centric platforms, yaaas might also encounter regulatory risks due to the continual evolution and regional discrepancies within the regulatory landscape of blockchain and cryptocurrency.
Mitigation Plans: Regularly monitoring and complying with the emerging regulatory guidelines and maintaining open communication with legal counsel proficient in blockchain and cryptocurrency law can aid in mitigating potential regulatory risks.