Ongoing Reserves Management

The value and stability of each reserve asset will be continuously monitored.

Key ongoing evaluation criteria that objective metrics aim to capture can be summarized as:

  • Peg Deviation: Frequency and magnitude of deviations from the peg.

  • Market Liquidity: Daily trading volume and order book depth changes.

  • Counterparty Risks: Changes in the regulatory landscape that might affect the reserve assets.

The Counterparty Risk framework is more subjective and still needs to be formally developed and continuously updated by the ODAO due to the dynamic regulatory environment. As OUSD launch approaches the initial instantiation of the framework will be developed.

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