Blockchain Application Security

Appendix IRisk Analysis Report

I.1   Executive Summary

This report presents a consolidated view of the key risks identified through the threat modeling and risk assessment of the DeFi lending and borrowing dApp. It is intended to support decision-makers, including risk owners, business leaders, and security stakeholders, in evaluating the platform’s security posture, understanding the potential business and technical impact of identified threats, and prioritizing mitigation strategies. The goal is to enable informed, risk-based decisions that safeguard the platform’s critical assets, maintain user trust, and ensure regulatory compliance in an evolving threat landscape.

I.2   Critical Threat Scenarios and Risk Ratings

The following table outlines the most critical threat scenarios identified during the threat modeling and risk assessment of the DeFi lending and borrowing platform. Each scenario is evaluated based on the likelihood of exploitation, the impact on security and business operations, and the resulting overall risk score. These risk scores help prioritize mitigation efforts by highlighting vulnerabilities that could lead to financial loss, platform instability, regulatory exposure, or loss of user trust. The scenarios span across the platform’s key components, ranging from user-facing interfaces and wallets to smart contracts, oracles, and infrastructure.

High-severity issues, such as those related to smart contracts, UI security, middleware, and oracles, demand ...