Decentralization Ratio

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DR or Decentralization Ratio is the ratio of the collateral value that is decentralized over the complete stablecoin supply backed for those assets. It is a function measuring the proportion of the value of an asset coming from decentralized sources. Therefore, it helps to assess the riskiness of an asset. It takes into account all of the underlying components of the collateral that a protocol has claims on and not just what is inside its system contracts.

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