Decentralization Ratio

« Back to Glossary Index

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.

« Back to Glossary Index

Check Also

new-mining-strategies-crypto-halving

New Mining Strategies You Need To Incorporate After Crypto Halving

Good News! The Bitcoin network has already crossed its 800,000th block at the end of …