Breakage analysis per dependency
Frax Finance's assessment for RD-F-052 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
Breakage analysis per dependency: (1) Chainlink ETH/USD failure — Fraxlend ETH-collateral pairs halt new borrows and liquidations (HIGH). (2) RedStone BUIDL NAV oracle failure — frxUSD RWA collateral cannot be priced; minting/redemption freezes (HIGH). (3) Securitize BUIDL redemption pathway failure (regulatory/banking) — frxUSD peg defense loses off-chain rails; peg break risk under stress (HIGH). (4) Curve AMO failure — FRAX supply management disrupted; principal recoverable (MEDIUM). (5) LayerZero OFT failure — cross-chain frxUSD transfers halt (MEDIUM). (6) Convex failure — yield loss only (LOW). Yellow because multiple HIGH-impact breakage paths exist with limited mitigation, particularly the BUIDL off-chain redemption path which has no on-chain fallback.
Sources #
- DocsFrax v3 OverviewFrax v3 docs — AMO collateral management and rebalancing dependency on Curve/Convexretrieved 2026-05-17
- Frax Oracle OverviewFrax Oracle docs — staleness/bad-data halt semantics for Fraxlendretrieved 2026-05-17
- Chaos Labs frxUSD Token ReviewChaos Labs frxUSD review — redemption constraint: subscriptions and redemptions limited to accredited investors whitelisted by Securitize, flows through transfer-agent and banking railsretrieved 2026-05-17
Methodology #
Produce a short per-dependency text describing which protocol functions halt or degrade and impact severity if each declared dependency fails.
See the full factor methodology and distribution across all protocols →