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Protocol Risks

As with any DeFi protocol, Open Dollar and its associated assets don't come without some degree of risk. While we implement rigorous and continuous comprehensive security measures to mitigate these, in the interest of full transparency we have detailed them below.

Before you decide to deposit your assets in the protocol or acquire the OD stablecoin asset, you should do your research and understand the risks involved.

If you'd like to dive deeper, you can check out the modules in the System Contracts section.

You can also check the original whitepaper for Reflexer, who created the GEB framework which Open Dollar is built on top of.

Smart Contracts

  • The core GEB contracts were audited by OpenZeppelin. Other helper contracts were audited by Quantstamp. Open Dollar’s changes and additions to this base protocol and those concerning NFVs have been audited by Code4rena. Additional audites have been carried out by Pessimistic and Pashov Audit Group. While thorough audits are necessary and assist in improving the security of a protocol, contract risk can never be entirely ruled out.

Admin Keys

  • In its initial stages, the first GEB deployment requires full management due to the risks tied to the PID controller and the need for more infrastructure for automation. Governance will have control over most components, which will gradually decrease as the protocol moves towards governance minimization. Until this process is complete, the protocol is managed by a specific Multisig wallet whose signers are known independent entities.

PID Controller

  • The PID controller, while a tested concept in DeFi, can still present challenges within the Open Dollar protocol. Its primary role is to manage the system's stability, but its performance is sensitive to how it's calibrated. An overly cautious setting might render it ineffective, failing to stabilize the OD or other stablecoins as intended. Conversely, an overly aggressive setting might lead to system destabilization. This delicate balance makes the management of the PID controller a critical aspect of the protocol's overall health and efficacy.

Suboptimal Parameters

  • Governance might set suboptimal parameters affecting debt and collateral auctions, which could lead to excessive printing of protocol tokens or insufficient bidding incentives. Additionally, parameters set for Global Settlement might delay the processing of Vaults and collateral redemption.

The protocol risks associated with GEB in Open Dollar highlight the importance of informed participation, continuous monitoring, and a cautious approach to investment. As the protocol evolves, staying updated on governance minimization efforts and understanding the complexities of its operation are advised for users engaging with Open Dollar.