Security
Sward builds on Aave V3, one of the most established lending systems in DeFi. Its markets use Aave's proven model for supplying, borrowing, interest accrual and liquidations, backed by years of technical review and real-world use.
Alongside that foundation, Sward has its own market settings and administration. This page covers the security work completed on Aave V3 and the controls active in Sward today.
Aave V3 foundation
Aave V3 underwent independent reviews by ABDK, OpenZeppelin, Trail of Bits, PeckShield and Sigma Prime. Certora also performed formal verification.
| Review | Type | Published |
|---|---|---|
| OpenZeppelin | Smart contracts | 1 Nov 2021 |
| Trail of Bits | Smart contracts | 7 Jan 2022 |
| PeckShield | Smart contracts | 14 Jan 2022 |
| Certora | Formal verification | 24 Jan 2022 |
| ABDK | Smart contracts | 27 Jan 2022 |
| Sigma Prime | Smart contracts | 27 Jan 2022 |
That work gives Sward a well-studied foundation. Those reviews assessed Aave V3; independent security reports commissioned for Sward will be added here as they become available.
Safeguards in the market
Every loan begins overcollateralised. Loan-to-value limits control how much a user can borrow, while the health factor and liquidation threshold keep each position accountable as prices and debt change.
Supply and borrow caps limit the market's exposure to a single asset. Administrators can freeze or pause a reserve when activity needs to stop, and the pool applies these rules on-chain rather than relying on the interface.
The oracle supplies the prices used for borrowing power and liquidations. Together, these controls follow the same risk-management model at the heart of Aave V3.
Wallet and protocol control
Sward is non-custodial. Connecting a wallet does not move funds, and every supply, borrow, repay or withdrawal requires a transaction signed by that wallet.
The testnet pool also has administrative roles for reserve settings and emergency controls. Its active contract addresses are public and can be checked on the Robinhood Chain explorer.
The current testnet
Sward currently runs on Robinhood Chain Testnet, where all assets are test tokens with no real value. Check the network shown in your wallet and read each transaction before signing. If you borrow, leave room above a health factor of 1.00 so ordinary price movement does not put the position near liquidation.