Safety Features

To account for stablecoin depegging events, Demex has these protocol safety measures.

Depeg Detector

As soon as the token's value (provided by Demex's on-chain oracles) deviates from its declared peg (e.g. 1 USD for stablecoins like USDC), deposits for that particular constituent token will be automatically disabled.

Users depositing that constituent token will be credited in that token (instead of being auto-converted), preventing continuous arbitrage of a depegged token.

Rate Limiters

When an abnormally large amount of tokens are being withdrawn, withdrawals may be temporarily paused, allowing developers and validators to manually confirm that everything is in order.