From a financial perspective, the token enabled as collateral can be considered as assets of ZeroLend, while the amount of tokens borrowed considered as the liabilities of the ZeroLend. Asset and liability tokens often differ, with borrowed tokens typically in stablecoins and collateral tokens being volatile.
It is important to conduct significant analysis before adding a token to ensure it adds more value than risk.
Hence, ZeroLend considers a comprehensive set of criteria to evaluate the suitability of adding an asset to the lending pool like:
Evaluating the liquidity of the asset to ensure sufficient market depth.
Conducting a thorough security audit to identify potential risks associated with the token's smart contract.
Determining the appropriate collateralization ratio for the token to balance risk and ensure the safety of the lending pool.
Supporting assets with the best risk profiles as collateral.
Assets with manipulable oracles are listed as single borrow assets.
Examining the level of community support and engagement for the token.
New, riskier assets with lower liquidity are considered for listing in Isolation mode for both borrow and collateral use.
Have assets in mind for ZeroLend? Join our Discord to share your suggestions.