This section show cases the results of the risk assessment methodology and analyses the results for each of the currencies considered.

Asset Risk Map - Harmony

各资产风险评估表_Asset Risk Map - Harmony

Risk Analysis per Asset

Listed Assets

BUSD

BUSD is one of the latest stablecoins launched by a partnership between Paxos, expert in stable coins, and Binance, one of the biggest exchanges and a major player in the industry.

BUSD Smart contract Risk: B+
With the booming development of BSC, BUSD has become one of the most important stablecoin assets on BSC, and there have been more than 54 million transfers.

BUSD Counterparty Risk: C+
With more than 560,000 holding addresses, BUSD is the most widely held stablecoin asset in the entire BSC DeFi ecosystem.

BUSD Market Risk: A-
The market capitalization of BUSD is more than 2.8 billion U.S. dollars, with an average daily trading volume of more than 6 billion U.S. dollars. It is widely circulated in multiple public chains and has good liquidity. The token is used in multiple DeFi platforms both as collateral and principal. BUSD is a stablecoin backed by real USD leading to low volatility.

BUSD Market Overall Rating: B+

USDC

USDC is primarily promoted by Coinbase and supported by the CENTRE consortium. Together with DAI, it has been the most used stablecoin in the DeFi ecosystem following a strong push from Coinbase who provides liquidity to projects.

USDC Smart contract Risk: A-
USDC has only been active since September 2018 with already over 12 million transactions.

USDC Counterparty Risk: B
As it’s backed by real US dollars, USDC is centralised. The technology to mint new USDC and hold the backed USD is based on a legal framework. It is currently maintained by the CENTRE consortium which is a trusted entity in the ecosystem. Furthermore, USDC is the first regulated cryptocurrency bringing a lot of legitimacy to the space. Still, the infrastructure is based on the Ethereum blockchain where regulators have little power.

USDC Market Risk: A
There is a high trading volume for USDC reaching over $800 million a day, with many pairs in multiple exchanges and a high market capitalisation. The token is used in multiple DeFi platforms both as collateral and principal. USDC is a stablecoin backed by real USD leading to low volatility.

USDC Market Overall Rating: A-

USDT

Tether is the oldest USD backed stablecoin. It initially started as an independent currency built on the Omni blockchain, and progressively moved on the Ethereum blockchain, presumably to take advantage of the DeFi ecosystem.

USDT Smart contract Risk: A-
USDT is the first stablecoin in operation since November 2014 and on this Ethereum contract since November 2017. With over 90 million transactions, USDT is one of the most used coins.

USDT Counterparty Risk: C+
1) In February this year, the NYAG’s office announced the settlement, formally ending the inquiry that kicked off in April 2019. Under the terms of the settlement, Bitfinex and Tether will admit no wrongdoing but will pay $18.5 million and provide quarterly reports describing the composition of Tether’s reserves for the next two years.

2) On March 31 this year, Tether has released an assurance report delivered by accounting firm Moore Cayman that shows that its stablecoins were fully backed as of February.

The report is dated February 28 and has an assurance opinion by Moore Cayman that Tether’s consolidated assets exceeded its consolidated liabilities as of the date.

3) On May 4 this year, CoinBase, known for its compliance and safety, officially listed USDT. So far, all leading
exchanges have supported USDT.

So, the risk of users and the WePiggy protocol suffering huge losses due to this is very small.

USDT Market Risk: A+
USDT is widely available in different exchanges and is the stablecoin with the highest volume. The value of USDT is stable around 1 dollar as it is backed by USD.

USDT Market Overall Rating: A-

DAI

DAI is the first decentralised stablecoin built on the Ethereum network. It is minted by creating a Collateralised Debt Position (CDP) and staking a certain amount of ETH. Every CDP must be overcollateralised by at least 150% of the minted DAI. Below this threshold, the CDP gets liquidated.

DAI Smart contract Risk: B+
DAI is active since December 2017 and has remained fully operational. In November 2019 the contract has evolved for DAI to hold a basket of currencies instead of just Ethereum. Given its wide use in the DeFi space, the contract already holds over 7 million transactions which mitigates the risk rising from its young age.

DAI Counterparty Risk: C+
DAI is the stablecoin of Maker DAO which has been functioning efficiently since inception. Anyone can mint DAI by opening a CDP. The Maker team also has some control over the minting.

Following the Black Thursday crash of March 2020, there was some deficit in the backing of DAI which required the minting of additional MKR. Additionally, there are some concerns related to the centralisation of the price feed, with oracles failing to keep the prices up to date during the said Black Thursday.

DAI Market Risk: A-
DAI has over $2 billion market capitalisation with around $380 million of average daily volume spread across the top exchanges. It has been robust throughout its whole life, sustaining multiple ETH price drops, its volatility is low.

DAI Market Overall Rating: B+

ETH

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.

ETH Smart contract Risk: A+
Ethereum is among the oldest cryptocurrencies ranking number 2 in terms of market capitalization. It has a large and committed community as demonstrated by over 1.1 billion transactions conducted.

ETH Counterparty Risk: A+
Ethereum is the most diverse ecosystem of digital currencies with over 156 million holders. There are many organizations that are dedicated to pushing the ecosystem further and decisions are community based.

ETH Market Risk: A
Ethereum has one of the highest market capitalization and trading volume among cryptocurrencies.
Recently, its price shows big fluctuation.

ETH Market Overall Rating: A+

WBTC

Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network.

WBTC Smart contract Risk: A+
It was launched in January 2009, and the number of BTC mainnet transfers exceeded 640 million.

WBTC Counterparty Risk: A+
With more than 37 million addresses and a large number of users in CEXs.
Bitcoin is the most widely held asset in the entire cryptocurrency field.

WBTC Market Risk: A
Bitcoin has the highest market capitalization and trading volume among cryptocurrencies.
Recently, its price shows big fluctuation.

WBTC Market Overall Rating: A+

ONE

In Harmony mainnet, ONE is used to:

• Pay gas for transfer, to deploy, and interact with smart contracts.
• Staking: users can vote for validators, through a vote delegation process, to collect staking rewards.

ONE Smart Contract Risk: A
ONE has been running for 909 days, the number of transfers exceeded 380 million, and it is still increasing rapidly.

ONE Counterparty Risk: A-
ONE currently has more than 527,000 unique addresses, and it is increasing rapidly.

ONE Market Risk: B-
ONE has relatively large liquidity in Binance, and not sufficient liquidity in DEX on the Harmony mainnet, with average daily trading volume at a medium level.

As the fuel token of Harmony, its liquidity is constantly improving with the development of the ecosystem.

The price has risen sharply in this year, and the recent volatility has been at a medium level.

ONE Market Overall Rating: A-

Pending Assets (not listed yet)

N/A

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