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Smart Contract Risks

  • Hacks: we built TWAMMs on Balancer V2 Vaults which have been battle-tested for 2+ years, see more here:
  • Malicious Admin: admins can pause pools and set fees, both features that will have active monitoring, see more info here:
  • Bricked Pools: there are edge-case scenarios when the pool becomes inoperable.
    • The gas required to execute virtual orders exceeds what's available in a single Ethereum block. We've built mitigations like executeVirtualOrdersToBlock for unwinding positions over multiple blocks.
    • Math underflow/overflow: we've done extensive numerical analysis and leverage Balancer Vault architecture to ensure this possibility is impossible.
  • Loss of Funds: Cron is completely non-custodial & users are in full control of their funds.
    • Pool paused by admin: users can withdraw their funds and incomplete trades are refunded.
    • Decimal rounding errors: we've simulated scenarios with extreme conditions (liquidity, trade sizes, time to completion, pool pair decimal difference, etc) to ensure users' fund loss is extremely minimal.
  • Code Visibility: we have verified the contract code on Etherscan so users are aware of the code being executed inside TWAMM

Lack of Arbitrage

Arbitrage is a necessary facet of TWAMMs because virtual orders are written on-chain by the next party interacting with the AMM, which are primarily arbitrageurs. Without regular arbitrage, TWAMMs asset prices would skew drastically and traders would get a poor order fill.
Here's what we've done to avoid
  • Dedicated arbitrageurs: we've partnered up with Rook, bloXroute, and others to ensure there's consistent arbitrage happening on popular TWAMM pools
  • Flash swap: this is a special swap available on Balancer that allows anybody to arbitrage by simply identifying pool price mispricings in the Vault without needing any assets:
  • Extreme gas optimizations: if the dedicated arbitrageur service is unavailable, anybody else in the mempool is free to arbitrage the TWAMM. The average swap cost on TWAMM for a fairly active pool is approximately 150,000 which is at parity with Uniswap V3 swaps which cost 200,000.

Trade Execution

  • Cancel at any time: if the price escapes your preferred price envelope, it can be canceled and restarted.
  • Withdraw at any time: users can withdraw proceeds at any time and multiple times during the order at the cost of paying for gas

Benefits of Dollar-Cost Averaging

  • can lower the average amount you spend on investments.
  • automatic and can take concerns about when to invest out of your hands.
  • removes the pitfalls of market timing, such as buying only when prices have already risen.
  • esure that you're already in the market and ready to buy when events send prices higher.
  • takes emotion out of investing.