Ecosystem Stability
This page provides an overview of the safety measures implemented by the DCNTRL Protocol to ensure the security & Stability of our ecosystem.
Last updated
This page provides an overview of the safety measures implemented by the DCNTRL Protocol to ensure the security & Stability of our ecosystem.
Last updated
At DCNTRL Protocol, the safety and security of our users and their assets is our top priority. We understand that the world of decentralized finance (DeFi) can be complex and sometimes risky, which is why we have implemented a range of measures to ensure the safety of our ecosystem. This includes regular audits, a robust liquidation mechanism, and a Recovery mode for extreme market conditions.
To ensure the security of our smart contracts and the safety of our users' assets, we have partnered with Peckshield and Hacken, two of the top blockchain security companies in the space. Both Peckshield and Hacken have conducted a thorough audits of our protocol, examining our smart contracts for potential vulnerabilities and ensuring that they adhere to best practices. The audit report can be found in our Audit Section:
The DCNTRL Protocol has a robust liquidation mechanism in place to ensure the stability of the system. If a user's collateral falls below a certain threshold, their position may be liquidated to ensure the solvency of the protocol.
There are two main types of liquidations within the DCNTRL ecosystem:
Stability Pool Liquidations: The stability pool plays a crucial role in maintaining the health of the system. If a user's collateral falls below the required threshold, their position can be liquidated by the stability pool. This helps to maintain the peg of USDEFI and ensures the stability of the protocol.
User Liquidations: In addition to the stability pool, other users of the protocol can also liquidate under-collateralized positions. This provides an additional layer of security for the protocol and incentivizes active participation in the ecosystem.
You can learn more about how Liquidations work in the dedicated section:
In the event of a market downturn, DCNTRL Protocol activates a Recovery Mode to protect the system and its users. This mechanism is designed to ensure the sustainability and longevity of the ecosystem, providing a safe and secure environment for users to lend and borrow.
During Recovery Mode, the protocol implements measures such as increasing the collateral ratio and pausing new loans. These measures are designed to protect the interests of users and ensure the stability of the system.
For instance, if a user has borrowed USDEFI using BNB as collateral and the market experiences a downturn, the Recovery Mode is activated. This protects the user from potential losses and ensures the stability of the system.
The specifics of Recovery mode, including the conditions under which it can be activated and the changes it implements, can be found in the specific section of our gitbook:
The safety and security of our users and their assets is of paramount importance to us at DCNTRL Protocol. Through regular audits, a robust liquidation mechanism, and a Recovery mode for extreme market conditions, we strive to create a secure and reliable ecosystem for our users. We are committed to maintaining the highest standards of safety and security as we continue to innovate in the DeFi space.
