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The 10-Point Protocol Safety Checklist

What a bank would do — and what you do instead

A bank carries risk on your behalf: it holds capital, follows supervisors’ rules and, in the US, is backed by FDIC deposit insurance. When you act as your own bank, those layers are gone. Every risk — code, custody, counterparties and your own mistakes — lands with you, so learning to recognise it is the most valuable skill on this site.

The checklist

See how protocols score

Protocol safety scorecard

Protocol safety scorecard
ProtocolLaunchedAuditsTVLIncidentsChainsNotes
Aave V32020 (V3 2022)Many (OpenZeppelin, Trail of Bits, Certora, SigmaPrime, others)Tens of billions USDNone with lender losses10+Largest lending market; Safety Module and governance-set risk parameters.
Compound V32018 (V3 2022)Multiple (OpenZeppelin, ChainSecurity)Billions USD2021 COMP distribution bug (rewards, not lender deposits)8+Single borrowable asset per market (e.g., USDC) simplifies risk.
Morpho2022Many, plus formal verificationBillions USDNo core-protocol lender losses; vault curator risk variesEthereum, Base and othersIsolated markets; yields depend on the vault curator you choose.
Uniswap2018ManyBillions USDNo core-contract exploits; LPs face impermanent loss10+A DEX, not a lender; useful for swapping, LP returns are not interest.
Lido2020ManyTens of billions USDNone with staker losses to dateEthereum (stETH/wstETH bridged elsewhere)10% fee on staking rewards; validator set concentration is a debated risk.
Kamino2022Multiple, plus formal verificationBillions USDNone with lender losses reportedSolanaLeading Solana lending market; check each market’s collateral list.
Jupiter Lend2025Multiple (built with Fluid)Hundreds of millions USDNone reportedSolanaNewer protocol: shorter track record means more unknowns.

A long track record and many audits reduce risk but never remove it. “No incidents” means none that cost lenders money that we know of.

Education only, not financial advice. Rates change and are not guaranteed. CoinPayBank is not a bank.

Sources

Frequently asked questions

Does a high TVL mean a protocol is safe?

No. TVL shows how much money trusts it, not whether that trust is justified.

How often should I recheck?

Whenever a protocol upgrades, changes parameters or has an incident — and at least every few months.

Last reviewed:

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