# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.opus.money/current/technical-documentation/governance/onboarding-collateral.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.