Security is at the top of our priorities. We are taking extensive measures to ensure risk management is implemented on multiple levels:
- We engaged the world's best audit firms for security audits and formal verifications for dForce protocols, including Trail of Bits, ConsenSys Diligence, Quantstamp, Certik, Certora, PeckShield, SlowMist, SECBIT. Click here to view full reports.
- We launched a Bug Bounty program on Immunefi to encourage security researchers, white hats, community’s participation in identifying potential vulnerabilities in dForce protocols and receive bounty rewards.
- We collaborate with decentralized insurance platforms to provide covers for dForce users to further hedge smart contract risks.
However, users should note the DeFi industry is still in its nascency, and assume no platform is 100% secure from risks associated, including smart contract vulnerabilities and liquidation risk in highly volatile market conditions.
- When supplying assets: free
- Loan origination: free
However, a small fee will be charged from interest spread (borrowing interest minus saving interest) to fund the interest reserve, which can be utilized to buy back DF from secondary market or redistribute as bonus to DF holders (subject to governance decision).
dForce Lending is a decentralized money market protocol utilizing smart contracts to facilitate crypto lending. Only users have access to and full control over their funds and we do not hold your asset – this is how decentralized finance works. Please make sure to keep you private key safe as we are unable to retrieve your private keys, access your account, reset your password or reverse transactions. It would be extremely upsetting if you lost your private key as you will permanently lose access to your fund.
In most cases, instant withdrawal is supported. However, deposit must be of greater value than loan demand of the same asset so that investors can withdraw fund at any time (adequate liquidity), that is to say, total availabilities of funds for withdrawal is subject to the size of liquidity pool (total supply minus total borrow), which is decided by Utilization Ratio of the asset. The higher the Utilization Ratio, the higher the supply rate / borrowing rate.
In extreme events of liquidity drain, where the utilization ratio is close to 100% and interest rates are pushed to above market level, investors will be incentivized to supply assets into the protocol for attractive investment returns, and borrowers will have to repay some loans to avoid liquidation of collaterals, which will bring liquidity back to normal level.
Yes. Investors can refinance or pay off your loans (in portion or in full) at any time. Interest will be calculated through the block of loan termination (calculated on block basis).
Yes. But please also note supply and borrowing are exclusive choices to the same asset. This means, users can supply one type of asset as collateral and take out loan(s) of different assets. For example, users can supply WETH as collateral to take out a USDT loan, but the same user (address) has to pay off outstanding USDT loans before depositing USDT to earn interest.
No. Anyone can participate with the same level of access, independent from your location, credit score, student loan status, or net worth, without validation of a centralized counterparty.
Interest rates will be algorithmically calculated based on market demands (yields-providing) and supply of assets (asset-providing) in every block (approximately 13 seconds on Ethereum and 3 seconds on Binance Smart Chain).
When an investor supplies a selected crypto asset to dForce Lending, collected funds will be placed into a global lending pool, where borrowers can borrow directly from the pool and pay interest for it. Interests will be distributed to all investors of the same asset on a pro rata basis.
Total Supply*Saving APR+Reserve=Total Borrowing*Borrowing APR
On dForce Lending, we charge no fees for providing assets or borrowing from the global pool. However, a small fee will be collected from interest spread (borrowing interest minus saving interest) as Reserve, which produces disparity between supply APR and borrowing APR. Accrued fees in Reserve will be utilized to provide additional safeguards to protocol users in extreme events, and facilitate buyback and burning of DF, or redistribute to DF holders as a bonus, subject to governance decision.
dForce Lending has integrated with ChainLink oracle to secure price feeds for a variety of crypto assets, which offers a higher level of decentralization and reliability for our users across the dForce network.
Yes, we welcome more participations from DF token holders in the governance process. DF token holders can propose and vote to collectively decide on proposed protocol changes, including onboarding of new assets, supporting of new collateral, and deciding on supply/borrow cap of each asset.