Asset due diligence

The protocol elaborated a comprehensive due diligence (DD) process for new asset listings. Any asset whose listing is put out for community voting is thus priorly investigated.

The DD entails evaluating four critical aspects

  • smart contract risk

  • counterparty risk

  • market risk

  • business risk

Assets posing unreasonably high risks may be disqualified from collateral usage or excluded from listing altogether.

Following listing, continuous monitoring is conducted to ensure that risk parameters remain suitably conservative.

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