Internal & External Collateral Risk Pricing

Internal Collateral Risk Pricing

The objective of Internal Collateral Risk Pricing is to derive a price that DAO users must pay for the right to use StableUnit for minting stablecoin in the form of stabilityFee and collateral ratio for each collateral.

	stETH	Tokemak LP1	Convex LP1	Aura LP1	WETH
Simple Aggregate Risk Score (before adding weights, discounts and premium)	1.92	3.23	2.77	3.69	1.85
Next stabilityFee, Annual %	4.06	6.28	7.10	5.25	3.99
Next CollateralRatio	120%	134%	158%	143%	113%
Next tokenDebtLimit	$15,370,000	$4,340,000	$8,493,000	$3,950,000	$33,540,000
Next max % of TVL	40%	33%	23%	13%	50%

External Collateral Risk Pricing

Objective of External Collateral Risk Pricing is to obtain market price from external open markets for the risk:

1. Option markets for deposit receipt tokens (received/redeemed by the DAO users upon deposit/ withdrawal of collateral, similar to aToken on Aave or cToken on Compound).

2. Specialty insurance markets for stablecoins issuers, which provide payouts specifically to our DAO - for example in the event of Bad Debt Accrual to StableUnit caused by specific collateral ABC listed on StableUnit.

3. Prediction markets which provide payouts specifically in the events of Bad Debt Accrual to StableUnit caused by specific collateral listed on StableUnit.

DAO then uses the obtained external pricing to derive a price that DAO users must pay for the right to use StableUnit for minting stablecoin in the form of stabilityFee and collateral ratio for each collateral.