LST-Specific Risk Management

Since Aspan is 100% collateralized by LSTs (e.g., slisBNB), we have designed dedicated risk controls tailored to LST characteristics.

Fair Pricing

• Risk: Hackers use flash loans to crash slisBNB prices on PancakeSwap in an instant and manipulate oracle prices

• Solution: Aspan never uses DEX spot prices to calculate LST value

  • We directly read the exchangeRate (i.e., TotalPooledBNB / TotalShares) from the LST smart contract

  • Even if the DEX price drops to zero, the internal LST price in Aspan remains equal to its underlying BNB value, making it impossible for hackers to arbitrage

Depeg Protection

• Risk: Vulnerabilities in the LST protocol itself lead to LSTs being unable to be redeemed for BNB at a 1:1 ratio

• Solution:

  • Spread Monitoring: Oracles real-time monitor the deviation between DEX prices and internal exchange rates

  • Circuit Breaker: If the deviation exceeds 3% (governable parameter), the system will automatically prohibit deposits of that LST to prevent bad debt inflows while allowing user redemptions