DIP005 – Proposal for the First Batch of Assets to be Supported with dForce Lending

Summary: We performed risk assessments in accordance with dForce Risk Framework for a number of widely adopted cryptoassets, and hereby propose to list WBTC, ETH, USDT, USDC, DAI as the first batch of assets to be supported by dForce Lending upon soft launch.

Background: dForce Lending is a pool-based lending protocol operating in a permissionless and transparent manner through smart contracts, with interest rates dynamically driven by market supply and demand and accounted for in every block. Similar to other protocols across dForce’s protocol matrix, dForce Lending is governed by dForce (DF) token holders, who can vote to collectively decide on proposed protocol changes, including onboarding of new assets, supporting of new collateral, and deciding the supply/borrow cap of each asset, etc.

Proposal: We propose to list WBTC, ETH, USDT, USDC, and DAI as the first batch of assets supported with dForce Lending based on analysis and assessments of the following risk factors. • Smart contract risks: maturity, code security, code openness • Financial risks: market and liquidity risks • Counterparty risks: centralization and intermediary risks All assets except USDT can be used as a collateral to borrow other assets, with full coverage of risk parameters for each asset including supply cap, borrow cap, loan to value, liquidity penalty, borrowed asset factor, and reserve factor.

Check out more about Risk per Asset through https://medium.com/dforcenet/the-first-batch-of-assets-to-be-supported-with-dforce-lending-d27e243f3fb.