Derive
September 2024
Sigma Prime reviewed Derive, formerly Lyra, with focus on liquidation pathways, manager health checks, account state, and protocol accounting. The case study is useful for derivatives and margin protocol teams where edge-case health logic can turn into loss or denial-of-service risk.
Executive summary
Sigma Prime conducted a security review of Derive (formerly Lyra) focusing on liquidation pathways, account health checks, and accounting consistency. The report identified multiple critical/high issues and supporting medium/low/informational findings that influence liquidation safety and operational resilience. Remediation recommendations target prevention of loss-inducing edge cases and stronger safeguards in manager and liquidation flows.
By the numbers
Total findings
25
High + critical findings
6
What we reviewed
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Liquidation logic
Liquidator behavior, bid mechanics, and conditions that can affect fund safety.
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Account health checks
Manager-side health logic and denial-of-service resilience.
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Protocol accounting
Consistency of state transitions and balance assumptions across complex flows.
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