We have performed risk assessment for all assets supported on dForce, with results presented as a scaled score:
Smart Contract Risk
Smart Contract Risk
Formerly known as RealCoin, Tether (USDT) was established in 2014. It is the oldest fiat-backed stablecoin and dominates the current stablecoin landscape. Tether Limited is responsible for custody of fiat reserves.
USDT was the first mainstream stablecoin in the market. It has been deployed on Ethereum since November 2017 with 89 million verifiable transactions up to date.
USDT is the most widely used stablecoin and the third largest cryptoassets following Bitcoin and Ethereum in terms of market capitalization (approx. US$30 billion). USDT has the highest trading volume, at US$157 billion within 24h according to Coin Market Cap.
USDT is centrally managed by Tether Limited, with crypto exchange Bitfinex sharing the same management and corporate structure (iFinex as the parent company), which exposed USDT to great single point of failure risk. Today, there are still multiple ongoing lawsuits against Tether and Bitfinex, including opaqueness with its dollar reserve and market manipulation. Tether’s vulnerability to counterparty risk is significant and therefore is subject to a lower score according to our risk factors.
USDC is a dollar-backed stablecoin powered by CENTRE, an open-source initiative established by Circle and backed by Coinbase. USDC is operating within the regulatory framework of U.S. and foreign money transmission laws and working with established banks and auditors.
USDC has been issued since September 2018. It is the oldest regulated stablecoin and second largest fiat stablecoin with approximately 12 million of on-chain transactions by far.
USDC has grown its presence in DeFi rapidly with a market capitalization of $6.6 billion and 24h trading volume of $2.3 billion.
USDC is still heavily reliant on its centralized issuer (CENTRE); though it is more regulated than USDT, it is still subject to potential regulatory recapture.
BUSD is a regulated digital dollar launched by Binance in partnership with Paxos. BUSD can be purchased and redeemed at 1 BUSD for 1 US dollar. Paxos Trust Company is the fiat reserve custodian of BUSD.
BUSD has steadily been gaining traction since its deployment on Ethereum network on 10 September 2019. Despite the relatively short history, BUSD continues to grow its DeFi offerings as an emerging player with great potentials.
With $2.9 billion market capitalization and $3.7 billion trading volume in 24h, BUSD is now the third largest stablecoin on the market.
BUSD is a 1:1 USD-backed stablecoin approved by the New York State Department of Financial Serves (NYDFS), issued by Binance in partnership with Paxos. Paxos Trust Company maintains custodian service for USD reserves of BUSD.
DAI is the first decentralized and on-chain collateralized stablecoin, backed by a number of cryptoassets of supreme quality. ‘Maker’ is the entity that powers the generation of DAI.
DAI is the first decentralized stablecoin with much longer history than many other decentralized stablecoin projects. However, with the support of multi-collateral to mint DAI, smart contract risks associated increases and may require market validation over a longer period.
DAI is widely adopted in decentralized environment on Ethereum with a market capitalization of $1.9 billion and 24h trading volume of $395 million (mostly through DEX).
DAI is fully operating in a decentralized manner. Though it introduced other regulated assets as collateral, its decentralized governance and a variety composition of assets expose itself to less counterparty risk than regulated stablecoin.
WBTC is the first ERC20 token backed 1:1 with Bitcoin, which was jointly initiated by Kyber, Ren, and BitGo. WBTC has been audited by multiple third-party audit firms including Solidified Technologies, ChainSecurity and Coinspect.
WBTC became available on Ethereum since November 2018 and has recorded over 1.2 million verifiable transactions since deployment.
WBTC is the dominant BTC-pegged ERC20 tokens on Ethereum in terms of market capitalization ($5.7 billion) and 24h trading volume (approx. $338 million).
WBTC is a centralized Bitcoin with Bitgo playing the role of sole custodian with WBTC, hence we apply a relatively lower score.
HBTC is a Ethereum-based BTC launched by Huobi Global (the largest crypto exchange in China) and is 100% backed by BTC reserves. It is currently the second largest BTC-pegged token on Ethereum in terms of market capitalization.
HBTC was deployed on Ethereum on 9 December 2019 by Huobi Global, who provides custodian service for BTC reserves and ensures full redemption of HBTC through Huobi Exchange.
HBTC has gained a market cap of US$1.2 billion with around US$400 million trading volume in 24h.
HBTC is launched by Huobi Global, a leading global digital asset exchange. Since the custody of BTC reserves is also maintained by Huobi Global, we apply a lower score.
Ether (ETH) is the native cryptocurrency of Ethereum. Users need to pay gas fee denominated in ETH while interacting with smart contracts. A majority number of decentralized applications are currently built on Ethereum, with ETH accounting for the biggest slice of pie of the total funds staked in DeFi projects.
Ethereum network went live on 30 July 2015. ETH is widely adopted by almost all decentralized platforms.
ETH is the second largest crypto asset following BTC, and has gained a considerable market cap of US$200 billion with around US$46.8 billion trading volume in 24h.
Ethereum is open-source and transparent, it is one of the strongest blockchain communities with tens of thousands of developers, technologists, users, HODLers, and enthusiasts all over the world.
UNI is the governance token of Uniswap, a decentralized exchange allowing for automated and permission-less token exchange on Ethereum and the most popular Dapp by far. Uniswap logs more than $1 billion in daily volume, with a total market capitalization of more than $17 billion.
Uniswap was founded in 2018 but UNI came live on Ethereum since 16 September 2020, with 2 million verifiable on-chain transactions since deployment.
Uniswap is the largest decentralized exchange with a market capitalization of more than $17 billion and 24h trading volume of $1.5 billion. It ranks #48 on CoinMarketCap in terms of market capitalization.
Uniswap is a DEX allowing buyers and sellers to exchange ERC-20 tokens in a trustless and permission-less manner, and do not rely on intermediaries to facilitate the process.
dForce Token (DF) is the utility and governance token of dForce, which facilitates governanvece, risk buffer and interest alignment across dForce network, which advocates for building an integrated and interoperable open finance and monetary protocol matrix covering asset, trading and lending.
dForce Token (DF) was audited by PeckShield and has been deployed on Ethereum for more than one year with 46K verifiable on-chain transactions.
DF is a ERC20 token deployed on Ethereum since July 2019, with a circulating market capitalization of $73.7 million and 24h trading volume of $4.8 million. Since the circulating market cap and trading volume are smaller than other assets accepted, we apply a relatively lower score.
dForce protocols are open-sourced and permission-less. Everyone with internet connection can participate with the same level of access, without interventions of intermediaries.
GOLDx is a gold token denominated in grams and launched by dForce. As a synthetic gold token backed by gold token reserves (currently with PAXG as its sole constituent, which is adjustable through on-chain governance), GOLDx is featuring zero transaction fees (excluding fee levied by Paxos for on-chain transactions of PAXG)) and is 100% compatible with all DeFi protocols.
PAXG is a gold token regulated by NYDFS and is 100% back by London Good Delivery physical gold bar certified by the London Bullion Market Association.
GOLDx became available on Ethereum since July 2020, with smart contract security audit completed by SlowMist.
As a wrapper of PAXG, GOLDx tracks the spot price of gold from LME (London Metal Exchange) and is always redeemable for real gold through PAXG, which has a circulating market capitalization of $124 million with $9.4 million trading volume in 24h. The market risk is correlated to gold price.
GOLDx is currently 100% backed by PAXG. Anyone can use the protocol to mint GOLDx with PAXG, or burn GOLDx to get back your PAXG deposit.
Paxos is a chartered trust company regulated by the New York State Department of Financial Services (NYDFS). It has opened accounts with Brink’s bullion vaults in London, which will maintain the vault or vaults for storage of allocated gold corresponding to PAXG.