Assets Listings

Asset Listing Criteria

In a lending platform like Lendfinity, deposited collateral can be considered assets, as one can sell it to recover the loan amount. On the other hand, borrowed amounts are liabilities, as they represent an obligation to repay the lender. Asset and liability tokens often differ, with borrowed tokens typically in stablecoins and collateral tokens being volatile.

Conducting a thorough analysis before listing a token on Lendfinity is important to reduce market risks.

Lendfinity considers a comprehensive set of criteria to evaluate the suitability of adding an asset to the lending pool, such as:

• 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.

• Listing assets with oracles that can be easily manipulated as single-borrow assets.

• Examining the level of community support and engagement for the token.