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Risk Parameters
Below is a table of risk parameters for all assets supported on dForce:
Ethereum Mainnet
BSC
Arbitrum

General Pool

Asset
LTV
Supply Cap
Borrow Cap
Borrow Factor
Reserve Factor
WBTC
80%
3,000
3,000
100%
20%
ETH
80%
40,000
40,000
100%
15%
USDT
80%
50,000,000
50,000,000
100%
10%
USDC
80%
50,000,000
50,000,000
100%
10%
DAI
80%
50,000,000
50,000,000
100%
10%
USX
80%
30,000,000
30,000,000
100%
10%
BUSD
80%
20,000,000
20,000,000
100%
10%
PAX
80%
10,000,000
10,000,000
100%
10%
TUSD
80%
10,000,000
10,000,000
100%
10%
EUX
80%
20,000,000
20,000,000
100%
10%
UNI
70%
100,000
100,000
100%
15%
LINK
70%
5,000
5,000
100%
15%
MKR
70%
400
400
100%
15%
DF
60%
200,000,000
200,000,000
100%
25%
GOLDx
80%
50,000
50,000
100%
10%
HBTC
80%
300
300
100%
20%
xBTC
70%
400
400
100%
10%
xETH
70%
5,000
5,000
100%
10%
Asset
Mintage Cap
Mintage Fee %
USX
30,000,000
3%
EUX
20,000,000
3%
xBTC
400
0%
xETH
5,000
0%
    Close Factor for assets sitting in the General Pool is 50%.
    Liquidation Incentive for assets sitting in the General Pool
    is 7%.

Synthetic Pool

Asset
LTV
Supply Cap
Borrow Cap
Borrow Factor
Reserve Factor
USX
80%
100,000,000
0
100%
10%
EUX
80%
40,000,000
0
100%
10%
Asset
Mintage Cap
Mintage Fee %
xTSLA
no limit
0%
xAAPL
no limit
0%
xAMZN
no limit
0%
xCOIN
no limit
0%
    Close Factor for assets sitting in the Synthetic Pool
    is 50%.
    Liquidation Incentive for assets sitting in the Synthetic Pool
    is 20%.

General Pool

Asset
LTV
Supply Cap
Borrow Cap
Borrow Factor
Reserve Factor
BTCB
80%
3,000
3,000
100%
15%
ETH
80%
40,000
40,000
100%
15%
BNB
80%
300,000
300,000
100%
15%
BUSD
80%
50,000,000
50,000,000
100%
10%
USDC
80%
50,000,000
50,000,000
100%
10%
USDT
80%
50,000,000
50,000,000
100%
10%
DAI
80%
50,000,000
50,000,000
100%
10%
USX
80%
30,000,000
30,000,000
100%
10%
EUX
80%
20,000,000
20,000,000
100%
10%
DF
60%
200,000,000
200,000,000
100%
25%
ATOM
70%
1,500,000
1,500,000
100%
15%
FIL
70%
350,000
350,000
100%
15%
DOT
70%
400,000
400,000
100%
15%
ADA
70%
8,000,000
8,000,000
100%
15%
UNI
70%
300,000
300,000
100%
15%
XRP
70%
5,000,000
5,000,000
100%
15%
LTC
70%
30,000
30,000
100%
15%
LINK
70%
250,000
250,000
100%
15%
CAKE
70%
80,000
80,000
100%
15%
BCH
70%
5,000
5,000
100%
15%
XTZ
70%
1,000,000
1,000,000
100%
15%
GOLDx
80%
50,000
50,000
100%
15%
xBTC
70%
400
400
100%
10%
xETH
70%
5,000
5,000
100%
10%
DF/USX
70%
10,000,000
10,000,000
100%
20%
USX/BUSD
80%
10,000,000
10,000,000
100%
20%
USX/EUX
80%
10,000,000
10,000,000
100%
20%
Asset
Mintage Cap
Mintage Fee Rate
USX
30,000,000
3%
EUX
20,000,000
3%
xBTC
400
0%
xETH
5,000
0%
    Close Factor for assets sitting in the General Pool is 50%.
    Liquidation Incentive for assets sitting in the General Pool
    is 7%.

Synthetic Pool

Asset
LTV
Supply Cap
Borrow Cap
Borrow Factor
Reserve Factor
USX
80%
100,000,000
0
100%
10%
EUX
80%
40,000,000
0
100%
10%
Asset
Mintage Cap
Mintage Fee Rate
xTSLA
no limit
0%
xAAPL
no limit
0%
xAMZN
no limit
0%
xCOIN
no limit
0%
    Close Factor for assets sitting in the Synthetic Pool
    is 50%.
    Liquidation Incentive for assets sitting in the Synthetic Pool
    is 20%.

General Pool

Asset
LTV
Supply Cap
Borrow Cap
Borrow Factor
Reserve Factor
USDC
80%
50,000,000
50,000,000
100%
10%
USDT
80%
50,000,000
50,000,000
100%
10%
DAI
80%
50,000,000
50,000,000
100%
10%
USX
80%
30,000,000
30,000,000
100%
10%
ETH
80%
40,000
40,000
100%
15%
WBTC
80%
3,000
3,000
100%
20%
DF
60%
200,000,000
200,000,000
100%
25%
EUX
80%
20,000,000
20,000,000
100%
10%
UNI
70%
100,000
100,000
100%
15%
LINK
70%
250,000
250,000
100%
15%
There are nine main indicators of risks that apply to the analysis of supported assets on dForce, namely:
Term
Description
Collateral Support
It refers to whether an asset can be used as collateral in a lending protocol. This is the first line of defense against infinite mint risk, or risk of market price volatility. For example, let’s assume asset ABC is enabled as a collateral. If there is infinite mint of ABC, or in the event of ABC price collapsing, we will see a flood of ABC depositing into the lending protocol and borrowing out other assets. On the contrary, if a collateral is disabled to be used as collateral in the protocol, it will substantially limit its usability and liquidity. We have introduced a Supply Cap, which helps limit the collateral risk exposure while maintaining a certain level of flexibility.
Supply Cap
We are one of the two protocols who utilize this risk parameter. In simple terms, the Supply Cap limits the overall exposure of a specific asset. This is particularly important if the said asset is enabled as a collateral within the protocol. For example, say we enable ABC as collateral within our lending protocol, if we set a supply cap of 10m ABC, at a collateral ratio of 75%, this will significantly limit the infinite mint risk of ABC; i.e., even if someone prints 1bn ABC, they can only supply no more than 10m into the lending protocol.
Borrow Cap
Borrow cap is used to mitigate against risk of concentration risk and liquidity risk of the lending protocol. An example of this can be illustrated with Compound. Compound protocol initially did not have a Borrow Cap when in the initial periods of the yield farming craze. In one instance, when arbitrageurs used recursive borrowing to borrow significant amounts of BAT, the borrowing went out of control. If there is significant price swing for BAT, it could put the protocol at risk of being insolvent
Loan-to-Value (or collateral ratio)
This is the most important parameter in a lending protocol. It is basically the leverage ratio of a specific asset, i.e., how much you can borrow against the collateral. The more liquid, stable, and mature an asset is, the higher the loan-to-value ratio
Liquidation Penalty
It is the discount factor to be applied in the event of liquidation of a loan position. During liquidation, a liquidator is able to buy the defaulted borrower’s collateral at discount to market price by repaying the defaulted loan on borrower’s behalf. The discount is the liquidation penalty. The more illiquid, less matured, and more volatile an asset is, there’s typically a higher liquidation penalty to incentivize liquidators to liquidate the defaulted loans in the event of default.
Borrow Factor
dForce is the only lending protocol that introduce this risk parameter. This is to further expand LTV ratio, to consider the liquidity and market risks of the borrowed assets. For example, a borrower who supplies ETH to borrow USDC, is less risky than a borrower who supplies ETH to borrow WBTC (due to price volatility of both ETH/WBTC and illiquidity of WBTC v.s USDC). In other lending protocols, both transactions are subject to the same LTV ratio by design. dForce will take the borrowed asset risk factor into account, which could result in a lower LTV for the same collateral with different borrowed asset. Please note that in the initial stages, we will be setting the Borrow Factor to 100% to simplify the risk module.
Reserve Factor
It is the amount of interest spread that can charged into the reserve pool. This is similar to interest rate spread charge to be reserved by future use.
Close Factor
The maximum amount you can liquidate in a single transaction for a default loan.
Liquidation Incentive
Collaterals from a default loan will be auctioned with a discount as a bonus to incentivize the liquidator.
Last modified 8d ago
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