General Assessment Criteria

As OETH consists of a basket of LSTs there is a need for a set of benchmarks to determine the reliability and security of the underlying collateral. To this end, several critical assessment criteria have been developed to evaluate the strength and efficiency of these systems.

Audits:

Trust, in the DeFi industry, relies on scrutiny. Audits are comprehensive reviews of the platform’s code, and they play a pivotal role in assuring users of a protocol's safety.

Firm Reputation: An audit is as trustworthy as the firm that conducts it. Reputable firms offer credibility and expertise.

Audit Frequency: Regular audits, especially after significant updates or changes, showcase a commitment to security.

Identified Issues: Transparency regarding vulnerabilities, their severity, and the response to them provides a clear picture of a platform’s security stance.

TVL (Total Value Locked):

TVL provides insight into the popularity and trustworthiness of a platform. It represents the assets users have staked or deposited in a DeFi protocol.

Peg Stability: For tokens pegged to established assets like ETH, stability is crucial. A reliable peg inspires trust and encourages use.

Historical Performance: Past behavior can indicate future performance. Monitoring a peg's historical stability offers insights into its future reliability.

Integration: A high TVL and stable peg, combined with integration across DeFi protocols, amplifies yield opportunities.

On-chain Liquidity:

Liquidity is the basis of any financial system. In DeFi, this liquidity should be transparently verifiable on-chain.

Depth: Adequate liquidity ensures that users can easily trade or transact without causing significant price impacts.

Growth Rate: Rapid growth can indicate a platform's popularity and community trust.

Composability: DeFi’s strength lies in interconnectivity. A token that can be easily integrated or used across various platforms augments its utility.

Oracle:

Oracles are data bridges between off-chain and on-chain systems. They are vital for smart contracts needing external information.

Reliability: An oracle's reliability ensures that the data it provides is accurate and timely.

Vulnerabilities: Awareness of potential attacks, like frontrunning, helps users gauge the reliability of the oracle data.

Yield Opportunities:

The promise of returns is one of the main drivers of what makes OETH attractive in DeFi. Understanding where and how these returns are generated is crucial.

Integration: An LST's value can rise with its utility. Integration across multiple platforms amplifies this utility and, by extension, potential yields.

Team:

Behind every DeFi platform is a team of developers and strategists. Trust in the platform often translates to trust in this team.

Transparency: Public profiles and histories of key team members foster trust and transparency.

Track Record: A history free from dubious activities points to a reliable and ethical team.

Documentation:

Thorough, clear documentation makes a platform accessible to both novices and experts.

Clarity & Accessibility: Comprehensive yet digestible documentation aids in understanding a protocol's nuances.

Admin Controls:

Control mechanisms can be double-edged. They might offer security or introduce vulnerabilities.

Transparency: Understanding who holds the reins and their level of control is key to gauging potential risks.

In conclusion, OETH presents an innovative way to access LST yield. Ensuring the trust and confidence of our holders is paramount. By rigorously adhering to the benchmarks laid out in this assessment criteria, we aim to equip our users with the insights they need, fostering unwavering confidence in their decision to hold OETH.