Adding a Reserve Asset

As stated in the introduction to the risk framework, DEFED's core business relies on the lending protocol represented by the Vault contract. Therefore, for the Lending protocol, the assets in the deposition, borrowing, and collateral lists themselves may cause a significant risk. Potential risk points:

• The approval of centralized assets into the list of depository and lending support may result in the spread of risks associated with centralized assets.

• Adding too many assets to the list will increase the complexity of the smart contract.

Therefore, at the early stage of DEFED, these core businesses will only support ETH, WBTC, USDC.

In addition, in the reserve asset addition proposal process, communities need to go through a risk module to assess the risk that the asset will cause before it can be added to the list of deposit and loan assets.

Note: Due to the fact that the assets used as collateral will greatly affect the security of the agreement, the addition of collateral list will not be open during the early stages. As the protocol evolves, and the risk module itself is improved, DEFED may open the governance rights in a specific form in the future.