Security

Who holds your tokens?

All funds are controlled by the users that deposit them. The GhoulDAO Protocol does not have control over your funds or gDAI debt.

Has the project been audited?

The GhoulDAO Protocol is a fork of QiDao which has been audited by Bramah Systems. Here is the report. They have audited mStable, dYdX, SetProtocol, IchiFarm, and others in the past.

How is GhoulDAO different from algorithmic (algo) stablecoins?

The ghoulDAO Protocol does not rely on an algorithm to manage the stablecoin’s peg. The peg is maintained through organic market incentives and penalties. gDAI’s value is backed by overcollateralized vaults of accepted tokens. This means that all gDAI is always backed by more value than it is worth.

What safeguards are in place to protect the Protocol from black swan events?

Swap:

When the price of collateral assets fall, demand for gDAI increases as users try to buy gDAI off the market to repay their loans. This can increase the price of gDAI. The swap allows users to mint and redeem gDAI at a fixed rate. This creates a risk-free arbitrage opportunity for users when the price is above or below the exchange rate. It also creates a price floor and ceiling for gDAI.

Debt Ceiling:

The debt ceiling is the maximum amount of gDAI that can be minted. It is periodically raised in response to demand. The goal of the debt ceiling is to prevent a large amount of gDAI from flooding the market and affecting the price. The debt ceiling will be increased for each vault type 48 hours after it has been reached. The increase will be in increments of 1 million gDAI.
Last modified 2mo ago