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Suilend @suilendprotocol on x 147.6K followers
Created: 2025-07-11 12:00:38 UTC
Potential Risks with Looping AUSD + sSUI/SUI
Liquidation Risk: Looping SUI and sSUI carries minimal liquidation risk due to their tight peg. However, since AUSD is typically used as collateral, there is liquidation risk if SUI appreciates in value. Monitor your borrow limit and stay below the threshold.
Interest Rate Risk: The profitability hinges on the spread between your earnings (deposit APR) and your costs (borrow APR). If that spread narrows or flips negative, your profits could vanish.
Smart Contract Risk (SpringSui): The primary, albeit slim, risk involves the exploitation of SpringSui smart contracts or a failure in the unstaking process. These scenarios are unlikely but not impossible. Learn more:
Protocol Risk (AUSD): As with any centralized stablecoin, AUSD carries risks related to protocol control and centralization. Agora retains control over the smart contracts, and reserves may be held off-chain. Learn more:
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Related Topics fed rate threshold sui chapter 11