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


7 Best VPN For Streaming: Enjoy Your Shows From Anywhere

Isn’t it frustrating when you just want to kick back and watch your favorite shows …