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RugDoc Review

Least Risk

Pancakeswap — usually the first DAPP that most new DeFi participants interact with, is actually a very weird one for us to rate.  From a purely code perspective, it actually has the migrator function inherited from Sushi that many other projects afterwards began to use to hard rug afterwards.  This is behind a timelock, so normally this type of project would be a RED or at best ORANGE risk project.  But — it is  one of the very few projects we have highlighted as GREEN due to a variety of factors:

  1. Operational history — one of the first dapps deployed on Binance Smart Chain, at the time the entire DeFi ecosystem had no qualms about the migrator code, and Pancakeswap just forked battle-tested and solid code in this manner.  Since then, they’ve shown that they are not going to use the function, even when it would make the most sense to…. for example their upgrade from V1 to V2 of their LP’s.
  2.  Binance-affiliated — They’re both backed by Binance and part of their core founding team are ex-Binance employees.  When people know who you are and where to find you, the chances you’re going to hard rug go down
  3. Market leader in DeFi — As of June 7, 2021, Pancakeswap has 338,113 unique users in the last 24 hours and $6.9 Billion in assets locked up in their platform.  Its’ closest competitor, Uniswap has nearly 7X less users with only 49,333 unique users and $5.8 Billion in assets locked up.  There is more activity on Pancakeswap’s Router contract than the ENTIRETY of Ethereum on most days.
  4. Lack of economic incentive — The amount of money Pancakeswap makes legally in swap fees is eye-watering.  Just like how Binance makes an insane amount of money by collecting fees on trades no matter which direction the market goes, Pancakeswap earns hundreds of millions in profits LEGALLY as is.  If they were to hard rug, there is simply nowhere for them to go with nearly $7 billion in funds except through Binance, which obviously is not going to just let those funds leave the ecosystem.  With a timelock too, you can bet that there are LOTS of people monitoring it, and so if it is called, you can be sure that Binance and other entities will be aware that it will be executing at some point.  Therefore, your only escape route is using 3rd party bridges, which might net you ~$50-100 million max, but as mentioned before…. this is literally less money than they can make legally just operating and doing their core business.
  5. Insurance — Due to extremely strong profits plus Binance backing as the core DAPP in DeFi, any type of exploit that lead to some user financial loss would almost certainly be covered by them.  For most projects, a $30 million exploit is the end of their project, as there’s no way they could ever pay it back.  Pancakeswap is one of the few that could easily afford that kind of hit to their treasury.

All in all, DeFi is never 100% safe — but in the spectrum of all the points above, the likelihood that you will lose 100% of the funds you put into a Pancakeswap farm is as low as you’re going to get in the space.

Updated on 8 September 2021

*Paid Advertisement. Not financial advice. RugDoc is not responsible for the projects showcased here. DYOR and ape safu.

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Related Events

PancakeSwap Pancake Squad NFT Launch
7 October 2021, 08:00 AM (UTC)

Our mission here at RugDoc is to screen for hard rug code that results in 100% theft of ALL underlying funds for ALL participants.

This is the ONE part of the due diligence process that most people cannot simply do on their own as it costs thousands of dollars to hire a senior solidity developer to look over a farm for safety.

A project coin with terrible code can go up in price, and a project with good code and a good team can also go down in price.

Do NOT use our ratings to refer to your likelihood in making money if you invest in the project. They are ONLY in reference to code safety.

Everything else beyond code safety is YOUR responsibility to go do research on. We just make sure the casino you’re betting in won’t rob you before you even get to place a bet.

Our reviews for projects are organized into a few colors.

🟢 Least Risk
These projects are the least likely to hard or soft rug. Usually reserved for cornerstone projects of an ecosystem where it makes no financial sense for them to rug in any manner as they make more money just being legit.

🔵 Low Risk
These projects are usually established projects in an ecosystem that have a track record of success or have KYC’d to us or other authoritative sources in the real world. As a result, it is extremely unlikely for them to soft rug or hard rug their projects. The projects can still fail and the token price can go down, but usually more as a result of natural market forces.

⚪️ Some Risk
This is the default rating for projects with unknown teams but have code that is unlikely to have hard rug risk. Since the team is unknown and doesn’t have a track record of success, it’s entirely possible that they may try to soft rug by dumping tokens, abandoning the project, etc. Even a last minute contract swap to a malicious contract is possible. The only thing that is unlikely is a complete hard rug as long as you are 100% sure you deposit into the contract we review.

🟠 Medium Risk
Similar to Some Risk, but the underlying code itself is custom enough or complex enough that it warrants an elevated risk rating that needs deeper research. Make sure you read every point presented to make sure you’re comfortable with that before entering. Still unlikely to hard rug, but more chances of custom code behaving incorrectly and causing other issues.

🔴 High Risk
Project contains code or practices that are HIGHLY LIKELY to lead to catastrophic losses as they are right now. Make sure you read the description carefully as we will always warn what these issues are. If you see the words Hard Rug anywhere in the review, STAY FAR AWAY!

⚫️ Not Eligible
We reserve the right to not review exceedingly complex projects that would require tens of thousands of dollars of senior security analyst man hours. Typically these are projects that deal with leverage, lending, options, derivatives, and anything that is overly complex and which requires tons of peer reviews and audits from top audit companies.

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🟢 For owners who have made impactful changes and would like an update to their farm review:

1️⃣ Use #update at @RugDocChat with your description and proof of changes and it will be forwarded to our scanners.

2️⃣ This does not guarantee a change in your review.

3️⃣ Owners who have difficulty solving the issues can consider our Consultation Package – please contact @BaymaxCrypto on Telegram to discuss.