Risk Tiers
Risk tiers are used as suggestions for each Cog Pair's risk in order to provide adaptable interest rates and collateralization rates based on the different assets in each pool.
As a permissionless protocol, Cog will never prevent someone from using or deploying a pool. The risk tiers are necessary to provide the correct adjustability for each pool, collateralization ratio, and utilization rates for long-term sustainability.
For now, the Cog team will use the following features to estimate the right risk tier for each Cog Pair, but this is just a suggestion and can be overriden if you feel differently.
Stable
Stablecoin to Stablecoin lending
Low
Open Source, Audits
Low
Major Coins such as Ether or USDC
High
Open Source, Audits
Med
Mid Caps
Med
Open Source, Audits
High
Meme Coins, Low Liquidity Coins
Low
Closed Source
The risk tiers will be first determined by the Cog team. All suggestions will still be taken into account in the meantime as the team makes appropriate updates given different market conditions.
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