Onboarding collateral

Opus can support many different assets as collateral. Internally, each collateral asset is referred to as a yang .

For each new yang, the following should be addressed at the point of onboarding:

• a risk analysis of the collateral asset;

• a technical assessment of the smart contract for the collateral;

• its availability as a price feed on the oracles currently onboarded.

Risk analysis

The risk analysis should take into account the following when determining the base rate, threshold and asset cap:

• Decentralization: Is the protocol centralized or decentralized? How does governance operate and what powers does governance have?

• Token distribution: How many addresses possess the tokens? Is a significant percentage (>25%) controlled by a small number of addresses?

• Team: Who are the contributors to the token's protocol? What is their involvement? Are there any red flags?

• Historical liquidity: What is the amount of available liquidity historically? Has there been any issues?

• Historical supply-demand checks: What has the supply and demand of the token been? How did it perform during periods of volatile market activity?

• Valuation and tokenomics: How does the asset derive its value?

In particular, this is a list of non-negotiable requirements:

• The maximum cap for an asset cannot exceed 50% of its circulating supply.

• The threshold should not be higher than 97% to ensure absorption is profitable for providers to the Absorber.

Technical Assessment

The technical assessment should take into account the following:

• Security: Have the contracts been reviewed? Was the audit report satisfactory?

• Communication: Are the developers contactable? Is there a security mailing list for critical announcements?

• Precision: What is the number of decimals of the token? Can it be easily integrated? Tokens with more than 18 decimals must be rejected.

• Total supply: Does the total supply exceed u128? If so, it must be rejected.

• Owner privileges: Is there a whitelist or blacklist? Is the token pausable? Who has the ability to mint new tokens? Is the contract upgradeable?

• Deviation from ERC-20 standard: Is there any non-standard ERC-20 code in the token contract? Are there callbacks that may pose reentrancy issues?

In particular, this is a list of non-negotiable requirements:

• A transfer of zero amount is valid.

• A successful transfer returns true.

Price oracles

The asset must have an available price feed on the oracles currently used by Opus.