https://docs.redstone.finance/assets/js/37b61c98.43804e8c.js

1"use strict";(globalThis.webpackChunkredstone_docs=globalThis.webpackChunkredstone_docs||[]).push([[1578],{1675(e,i,n){n.r(i),n.d(i,{assets:()=>o,contentTitle:()=>l,default:()=>h,frontMatter:()=>a,metadata:()=>r,toc:()=>d});const r=JSON.parse('{"id":"stage3-risk-intelligence/credora/faq/index","title":"FAQ","description":"1. Are there any live Credora ratings being used atm?","source":"@site/docs/stage3-risk-intelligence/credora/faq/index.md","sourceDirName":"stage3-risk-intelligence/credora/faq","slug":"/stage3-risk-intelligence/credora/faq/","permalink":"/docs/stage3-risk-intelligence/credora/faq/","draft":false,"unlisted":false,"editUrl":"https://github.com/redstone-finance/redstone-docs/tree/main/docs/stage3-risk-intelligence/credora/faq/index.md","tags":[],"version":"current","frontMatter":{},"sidebar":"tutorialSidebar","previous":{"title":"Ratings","permalink":"/docs/stage3-risk-intelligence/credora/api-documentation/ratings/"},"next":{"title":"Data quality","permalink":"/docs/category/data-quality"}}');var s=n(4848),t=n(8453);const a={},l="FAQ",o={},d=[{value:"1. Are there any live Credora ratings being used atm?",id:"1-are-there-any-live-credora-ratings-being-used-atm",level:2},{value:"2. How can I gain access to the Credora API?",id:"2-how-can-i-gain-access-to-the-credora-api",level:2},{value:"3. What sort of risk does Credora aggregate?",id:"3-what-sort-of-risk-does-credora-aggregate",level:2},{value:"a. At the Asset Token Level",id:"a-at-the-asset-token-level",level:3},{value:"b. At a Loan Pair Level",id:"b-at-a-loan-pair-level",level:3},{value:"c. At a Vault Level",id:"c-at-a-vault-level",level:3},{value:"4. What is the benefit of using Credora\u2019s risk ratings?",id:"4-what-is-the-benefit-of-using-credoras-risk-ratings",level:2},{value:"5. Who benefits from Credora\u2019s risk ratings?",id:"5-who-benefits-from-credoras-risk-ratings",level:2},{value:"6. How often are our risk ratings updated?",id:"6-how-often-are-our-risk-ratings-updated",level:2},{value:"7. What does the rating process look like?",id:"7-what-does-the-rating-process-look-like",level:2},{value:"8. What are the main drivers of a rating?",id:"8-what-are-the-main-drivers-of-a-rating",level:2},{value:"9. How does the old Credora methodology compare to the new methodology?",id:"9-how-does-the-old-credora-methodology-compare-to-the-new-methodology",level:2}];function c(e){const i={a:"a",br:"br",h1:"h1",h2:"h2",h3:"h3",header:"header",li:"li",p:"p",strong:"strong",ul:"ul",...(0,t.R)(),...e.components};return(0,s.jsxs)(s.Fragment,{children:[(0,s.jsx)(i.header,{children:(0,s.jsx)(i.h1,{id:"faq",children:"FAQ"})}),"\n",(0,s.jsx)(i.h2,{id:"1-are-there-any-live-credora-ratings-being-used-atm",children:"1. Are there any live Credora ratings being used atm?"}),"\n",(0,s.jsxs)(i.p,{children:["Ratings are now live in ",(0,s.jsx)(i.a,{href:"https://x.com/CredoraNetwork/status/1998754751060840535",children:"Morpho"}),". Spark ratings are currently being worked on and will be live soon."]}),"\n",(0,s.jsx)(i.h2,{id:"2-how-can-i-gain-access-to-the-credora-api",children:"2. How can I gain access to the Credora API?"}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsxs)(i.li,{children:["We are relaunching the API during Devconnect, limited to the vault ratings endpoint.",(0,s.jsx)(i.br,{}),"\n","Market & asset ratings will follow shortly, and the expansion in vault coverage will continue as our agreements with curators progress.",(0,s.jsx)(i.br,{}),"\n","Accessing Credora APIs requires whitelisted access which can be requested on this ",(0,s.jsx)(i.a,{href:"https://forms.gle/Fjb5MBGeUHgRJ8wU9",children:"Google Form"}),"."]}),"\n"]}),"\n",(0,s.jsx)(i.h2,{id:"3-what-sort-of-risk-does-credora-aggregate",children:"3. What sort of risk does Credora aggregate?"}),"\n",(0,s.jsx)(i.h3,{id:"a-at-the-asset-token-level",children:"a. At the Asset Token Level"}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"i. Asset Quality"}),"\n",(0,s.jsx)(i.li,{children:"ii. Custody Risk"}),"\n",(0,s.jsx)(i.li,{children:"iii. Network Risk"}),"\n",(0,s.jsx)(i.li,{children:"iv. Reserve Management"}),"\n",(0,s.jsx)(i.li,{children:"v. Regulatory Cover"}),"\n",(0,s.jsx)(i.li,{children:"vi. User Rights"}),"\n",(0,s.jsx)(i.li,{children:"vii. Audit Quality"}),"\n",(0,s.jsx)(i.li,{children:"viii. Contract Maturity"}),"\n",(0,s.jsx)(i.li,{children:"ix. Collateralization"}),"\n",(0,s.jsx)(i.li,{children:"x. Reserves Transparency"}),"\n",(0,s.jsx)(i.li,{children:"xi. Peg Track Record"}),"\n",(0,s.jsx)(i.li,{children:"xii. TVL"}),"\n",(0,s.jsx)(i.li,{children:"xiii. Governance"}),"\n"]}),"\n",(0,s.jsx)(i.h3,{id:"b-at-a-loan-pair-level",children:"b. At a Loan Pair Level"}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsxs)(i.li,{children:["\n",(0,s.jsx)(i.p,{children:(0,s.jsx)(i.strong,{children:"i. Liquidation Probability:"})}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"Pair Price Volatility"}),"\n",(0,s.jsx)(i.li,{children:"Market Extreme Tail events"}),"\n",(0,s.jsx)(i.li,{children:"Collateral Default"}),"\n",(0,s.jsx)(i.li,{children:"Allocated Positions"}),"\n",(0,s.jsx)(i.li,{children:"User Rebalance Profile"}),"\n",(0,s.jsx)(i.li,{children:"Market Characteristics (LTV, LIF)"}),"\n"]}),"\n"]}),"\n",(0,s.jsxs)(i.li,{children:["\n",(0,s.jsx)(i.p,{children:(0,s.jsx)(i.strong,{children:"ii. Bad debt given Liquidation Probability:"})}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"Base Liquidity"}),"\n",(0,s.jsx)(i.li,{children:"Pair Usage across Lending Protocols"}),"\n",(0,s.jsx)(i.li,{children:"Pair Usage in the Rated Protocol"}),"\n",(0,s.jsx)(i.li,{children:"Volatility of the price pair"}),"\n"]}),"\n"]}),"\n",(0,s.jsxs)(i.li,{children:["\n",(0,s.jsx)(i.p,{children:"iii. Oracle"}),"\n"]}),"\n",(0,s.jsxs)(i.li,{children:["\n",(0,s.jsx)(i.p,{children:"iv. Protocol"}),"\n"]}),"\n"]}),"\n",(0,s.jsx)(i.h3,{id:"c-at-a-vault-level",children:"c. At a Vault Level"}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"i. Markets PSL"}),"\n",(0,s.jsx)(i.li,{children:"ii. Curator"}),"\n",(0,s.jsx)(i.li,{children:"iii. Governance"}),"\n",(0,s.jsx)(i.li,{children:"iv. Guardian"}),"\n",(0,s.jsx)(i.li,{children:"v. Timelock"}),"\n"]}),"\n",(0,s.jsx)(i.h2,{id:"4-what-is-the-benefit-of-using-credoras-risk-ratings",children:"4. What is the benefit of using Credora\u2019s risk ratings?"}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"Risk transparency and enhanced ecosystem trust"}),"\n",(0,s.jsx)(i.li,{children:"Informed risk-reward decision making"}),"\n",(0,s.jsx)(i.li,{children:"Elevated DeFi market standards"}),"\n",(0,s.jsx)(i.li,{children:"Early warnings on changing risk profiles"}),"\n",(0,s.jsx)(i.li,{children:"Risk/Reward adjusted strategies"}),"\n"]}),"\n",(0,s.jsx)(i.h2,{id:"5-who-benefits-from-credoras-risk-ratings",children:"5. Who benefits from Credora\u2019s risk ratings?"}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"Vault Curators"}),"\n",(0,s.jsx)(i.li,{children:"End Users"}),"\n",(0,s.jsx)(i.li,{children:"Lending Protocols"}),"\n",(0,s.jsx)(i.li,{children:"Yield Aggregators"}),"\n",(0,s.jsx)(i.li,{children:"CEXs"}),"\n",(0,s.jsx)(i.li,{children:"Asset Issuers"}),"\n"]}),"\n",(0,s.jsx)(i.h2,{id:"6-how-often-are-our-risk-ratings-updated",children:"6. How often are our risk ratings updated?"}),"\n",(0,s.jsx)(i.p,{children:"Updates are done within 24h to 48h of material changes in the risk profile"}),"\n",(0,s.jsx)(i.h2,{id:"7-what-does-the-rating-process-look-like",children:"7. What does the rating process look like?"}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"An initial call to discu

1ss what needs to be rated, explore use cases, and determine if Credora is a good fit."}),"\n",(0,s.jsx)(i.li,{children:"Rating coverage analysis to determine what assets/markets are exposed to and how prices are determined."}),"\n",(0,s.jsx)(i.li,{children:"Quantify various factors of risk with methodologies, simulations, and models."}),"\n",(0,s.jsx)(i.li,{children:"Compose the final ratings."}),"\n"]}),"\n",(0,s.jsx)(i.h2,{id:"8-what-are-the-main-drivers-of-a-rating",children:"8. What are the main drivers of a rating?"}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"Allocation distribution"}),"\n",(0,s.jsx)(i.li,{children:"Pair type (stable to stable) or (stable to volatile)"}),"\n",(0,s.jsx)(i.li,{children:"Oracle Type"}),"\n",(0,s.jsx)(i.li,{children:"Returns Volatility"}),"\n",(0,s.jsx)(i.li,{children:"Tail Returns Distribution"}),"\n",(0,s.jsx)(i.li,{children:"LIF, LLTV"}),"\n",(0,s.jsx)(i.li,{children:"Collateral PD, LGD"}),"\n",(0,s.jsxs)(i.li,{children:["Liquidity:","\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"Base Liquidity across DEXs at X% slippage"}),"\n",(0,s.jsx)(i.li,{children:"Pair usage across other Lending Protocols"}),"\n",(0,s.jsx)(i.li,{children:"Ratio between recent daily volatility and the volatility under extreme market events"}),"\n"]}),"\n"]}),"\n",(0,s.jsx)(i.li,{children:"Total Borrowed Amount in the Market"}),"\n"]}),"\n",(0,s.jsx)(i.h2,{id:"9-how-does-the-old-credora-methodology-compare-to-the-new-methodology",children:"9. How does the old Credora methodology compare to the new methodology?"}),"\n",(0,s.jsx)(i.p,{children:"The methodology itself remains unchanged; we\u2019re following the same steps as before. The only modification is an update to the rating cut-off tables. We made the change because we will publish assets on the same scale, and it brought some positive differentiation in that capacity."})]})}function h(e={}){const{wrapper:i}={...(0,t.R)(),...e.components};return i?(0,s.jsx)(i,{...e,children:(0,s.jsx)(c,{...e})}):c(e)}},8453(e,i,n){n.d(i,{R:()=>a,x:()=>l});var r=n(6540);const s={},t=r.createContext(s);function a(e){const i=r.useContext(t);return r.useMemo((function(){return"function"==typeof e?e(i):{...i,...e}}),[i,e])}function l(e){let i;return i=e.disableParentContext?"function"==typeof e.components?e.components(s):e.components||s:a(e.components),r.createElement(t.Provider,{value:i},e.children)}}}]);