Exponential, an funding platform specializing in DeFi assessments, has downgraded the USDA stablecoin’s score from “Lowest danger” to “Low danger.”
The methodology utilized on this score is predicated on evaluation of DeFi protocol dangers, together with lending design, collateral high quality and governance dynamics.
This alteration primarily stems from issues over the heavy reliance on the exterior protocol Morpho Blue, the place over 50% of USDA’s collateral is deposited.
Morpho, a comparatively new and fewer battle-tested cash market, introduces a possible single level of failure.
The downgrade additionally follows an identical incident involving the Euler hack in March 2023, the place Angle’s reserves had been compromised, underscoring the dangers of exterior dependency. Throughout that incident, $17.6 million of Angle’s USDC reserves had been affected as a result of hack on Euler.
