p28 Audited Tokens

The importance of liquidity pools for the Jarvis platform comes from their ability to help maintain the peg. The more redundancies in place to maintain the peg of a stablecoin, the safer it is to hold, use, and accept.

A risk in liquidity pools is if the price of an asset goes to zero. In a uniswap invariant LP, this results in a large loss of funds, but especially for curve, a collapse of peg in one of the assets of a pool results in almost 100% loss in funds.

The same reasoning also applies to the collateral utilized in the synthereum protocol. Collateral becoming devalued will understandably result in loss of funds as well.

Jarvis has a moral responsibility to its users to not endorse pools with increased risk of peg loss. One way to help ensure this is to only use audited tokens in the incentivized liquidity pools and collateral pools, as unaudited stablecoins have no way of being assessed for risk.

I propose that all tokens used for jFIAT collateral and future Jarvis-incentivized liquidity pools must have transparent audits from reputable firms.