defirisk.co
rubric v1.7.0

Algorithmic / under-collateralized stablecoin

M^0's assessment for RD-F-069 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.

Evidence summary #

$M is over-collateralized against off-chain T-bills — NOT algorithmic. Peg maintained by Minter arbitrage: if $M < $1, Minters buy on secondary market and redeem collateral; if $M > $1, Minters post collateral and mint more. No algorithmic stabilization mechanism. MINT_RATIO governance parameter (100%–650%) governs max $M per Minter. Undercollateralization triggers onchain penalty accrual. EarnerRateModel sustainability confirmed: earner yield adjusts downward when earner demand exceeds minter-rate inflows, preventing yield insolvency. RISKS warranting yellow: (1) off-chain collateral opacity — T-bills held in Luxembourg SPV (CrossLend GmbH / DEKA Bank); transparency depends on off-chain custodian and SPV auditors, not on-chain verification alone; (2) single-structure dependency — only one fully documented approved collateral structure; Superstate USTB proposed as second but not confirmed approved at assessment date; (3) Minter solvency dependence — if a large Minter defaults on T-bill

Sources #

Methodology #

Classify whether the protocol is an algorithmic or under-collateralized stablecoin design per curator classification.

See the full factor methodology and distribution across all protocols →

rubric_version v1.7.0 protocol m0 factor RD-F-069 score yellow collected_at 2026-05-16 09:46:19