Collateralization under stress
Ondo Finance's assessment for RD-F-068 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
OUSG-collateralized positions in Flux Finance use a 92% collateral factor (LTV), implying a liquidation threshold above which positions are seized. Under a stress scenario: (a) OUSG NAV drops rapidly (e.g., if underlying T-bills or BUIDL face a temporary liquidity event), (b) Flux's NAV oracle (daily update) cannot mark OUSG down intra-day, and (c) the liquidator pool is restricted to KYC-whitelisted users. These three factors compound: a sharp NAV decline may not be reflected in the oracle i...
Sources #
- EtherscanFlux Finance: Governance (GovernorBravoDelegator, verified)https://etherscan.io/address/0x336505EC1BcC1A020EeDe459f57581725D23465Aretrieved 2026-05-12
- Ondo Finance docs (verified: covers OUSG + USDY)https://docs.ondo.financeretrieved 2026-05-12
- Flux Finance Timelock (24h delay per Compound config)https://etherscan.io/address/0x2c5898da4DF1d45EAb2B7B192a361C3b9EB18d9cretrieved 2026-05-12
Methodology #
Determine whether under curator-defined stress scenario (top-3 collateral assets drop 50%), protocol net collateralization falls below 110%.
See the full factor methodology and distribution across all protocols →