Treatment of crypto-backed stablecoins

[roinevirta]

The current repository structure needs to support crypto-backed stablecoins better. It needs to contain the necessary indicators to properly compare them vis-a-vis.

Any thoughts?

Some food for thought:

1. What indicators should be included for crypto-backed stablecoins?
2. Should different types of stablecoins be divided into, e.g., different directories?
3. How does the concept of an issuer extend to crypto-backed stables? Should the governance mechanisms be reviewed or the dev co?

[roinevirta]

Some of my initial thoughts:

Important indicators for crypto-backed stablecoins

1. Smart contract safety: immutable/upgradable? if upgradable, by whom and under which conditions? are they audited? how much Lindy do they have?
2. Governance: what powers do the protocol governance have? can the governance impose breaking changes? if so, how quickly?
3. Team: for stablecoins whose team has admin power over the smart contracts, are they doxxed? this becomes less important the more timelocks and the more decentralised admin power is.
4. Quality of backing assets: what risks do the backing assets have? if they are other stables or RWAs, can they blocklist the stablecoin smart contract? are they high volatility? under what circumstances might the protocol experience losses of principal?
5. Rehypothecation: are customer assets rehypothecated? how?
6. Blackswans: what procedures does the team have in place in case of blackswans? are these documented publicly or encoded to smart contracts?
7. Smart contracts: how do these function? are the unexpected clauses users should be aware of?

Directory division

1. It might make sense but would also fragment information. Perhaps we could instead indicate that some fields are primarily meant for certain types of stablecoins and omitting answers does not necessarily reflect badly.

Issuer

1. Dev company should be reviewed if there is no meaningful decentralisation or the dev co exercises major control over the stablecoin. I'm not sure how this can or should be determined thought.

[roinevirta]

Bluechip's SMIDGE framework's section 1.3.1 might be relevant here.