Collateralization under stress
Sky Lending (formerly MakerDAO)'s assessment for RD-F-068 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
50% crypto-collateral stress scenario partially assessed. LRs 130-150% provide buffer. Liquidations 2.0 deployed May 2021 specifically to address Black Thursday failure mode. No bad-debt event since. RWA at 23.5% is uncorrelated. Full simulation not completed from live on-chain data.
Detail #
Crypto collateral is ~43.6% of $5.49B TVL ≈ $2.4B. At 50% drop this becomes ~$1.2B against USDS minted against those assets. With 150% LR, maximum USDS that can be minted against $2.4B crypto is $1.6B — leaving ~$400M buffer above face value. However, this is a simplified estimate; actual per-vault debt/collateral ratios vary. Liquidations 2.0 (Dog/Clip Dutch auction, ChainSecurity+ToB+Quantstamp audited) replaced the failed English auction system. Protocol has operated without bad-debt event for 5+ years post-Liq-2.0. Full simulation requires live Vat urn state reads not completed in this assessment.
Sources #
- DocsLiquidation 2.0 Module | Maker Protocol Technical DocsMakerDAO Liquidations 2.0 Module documentationretrieved 2026-04-27
Methodology #
Determine whether under curator-defined stress scenario (top-3 collateral assets drop 50%), protocol net collateralization falls below 110%.
See the full factor methodology and distribution across all protocols →