Comparison of Collateral Risk Framework vs Peers

For the purpose of this comparison we consider DAI, FRAX, LUSD, GHO, crvUSD as 1st Generation Stablecoin designs, implemented between 2017 - Q2 2023.

Risk modeling	Qualitative + Quantitative (modeling and stress testing using verified and specific data) Used by Aave, Compound, MakerDAO	Qualitative + Quantitative (modeling and stress testing using verified and specific data) The same as used by Aave, Compound, MakerDAO
Collateral Categorization	Tiers	Tiers
Collateral Risk Rating & Parameters (Stability Fee, Collateralization, Debt Ceiling etc)	Calculated internally Uses stress testing	Recommended internally Uses stress testing Risk is priced internally, for example StableUnit > Tokemak LP1 Stability Fee is 3.5% Risk is also priced in open, independent markets, which use their own calculation backed by capital, of the risk of bad debt accrual events for each collateral listed on StableUnit (see example - 30-day ahead bad debt risk market “StableUnit > Tokemak LP1 with $1M in backing prices this risk at 4.5% - option markets, insurance markets, depeg markets, prediction markets)
Source of economic security capital	Internal capital only	Internal + external capital