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# System prepended metadata

title: Token Listing Screening Guideline

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# Token Listing Screening Guideline

Homora aims to make the best efforts to list high-quality tokens. Therefore, each token listed on Homora has gone through rigorous assessment to ensure minimal potential risks associated with oracle price manipulation.

In this section, we outline the key criteria when selecting which tokens to be listed on Homora V2, including a set of primary and secondary criteria.

## Primary Criteria

| Primary Criteria | Description | Token Listing Requirement |
| -------- | -------- | -------- |
| 1.1 Token Price Volatility    | Price volatility refers to how volatile the price of the underlying token is. High volatility can cause positions to become underwater before anyone can perform any action to minimize risks.   | 1D-price volatility < 1.5x |
|1.2 Token Price Robustness| Price robustness refers to how differ the true token price (price derived from the liquidity pool on DEXes) from oracle price (price feed from external service providers). Larger difference can lead to a more attack vector (early liquidation / liquidation lag).| Price deviation* < 5%

*Price deviation refers to the maximum deviation between DEX price and the oracle reported price (Band/Chainlink) at any point in time.

## Secondary Criteria

Apart from the primary criteria, Homora also considers other factors as secondary criteria when implementing new token listing on the protocol.


| Secondary Criteria | Description | Token Listing Requirements |
| -------- | -------- | -------- |
| 2.1 Circulating Market Capitalization (MCAP) | Circulating  MCAP is one of the popular indicator that measures market value of a cryptocurrency. Homora V2 considers only mid to large-cap asset to be listed | > 20M
| 2.2 Time since token launch | Token launch refers to the period at which the token is available for public activities (ie. at ICO). Homora V2 considers a buffer period for token to discover its price stability to lower risks for users due to new token price volatility | > 3 months
| 2.3 Degree of centralization | Degree of centralization refers to the concentration of authority over the tokens. For example, a major proportion of the asset is held by a small group of wallets.| No wallet holding > 10% of the total supply
| 2.4 Oracle requirements | Oracle provides Homora access to real world data (ie. off-chain token price). Homora V2 ensure the accuracy of price feed by using 2 oracle services. | Token price is supported by Band OR Chainlink|


Note: The set of criteria above are just a guideline to help users better understand our rationale behind token listing. In actual implementation, additional factors may be taken into account to ensure security and benefits for Homora users.

## Additional

There is a set of tokens that do not pass Homora security criteria due to the characteristic of a token itself; therefore, will not get listed on Homora. These includes:

**1. Rebase Tokens:** Tokens that can increase or decrease in supply when held in user's wallet such as aTokens (AAVE), stETH (Lido), etc.
**2. ERC-777 Tokens:** Tokens that are constructed using ERC-777 token standard such as stkTOKEN (PStake)
**3. Fees-on-transfer Tokens**
**4. Upgradable Tokens**

### Special case

**Liquid staking Tokens:**  Transferable tokens that represent ownership of the underlying staked assets will be assessed on a case-by-case basis.


## Token Tiers

If the token passes through the token listing screening process and get listed on Homora, they will be further classify into tiers based on level of associated risks to support Homora token factors (borrow factors & collateral factors) calculation and pool listing process.

### For stable assets

| Tier | Types of tokens | Example |
| -------- | -------- | -------- |
| S1     | Fully-backed fiat, Overcollateralized-crypto with market cap > 1,000M     | USDC, USDT, DAI |
| S2 | Fully-backed fiat, Overcollateralized-crypto with market cap < 1,000M |sUSD
| S3 | Algorithmic stable coin | MIM |

### For non-stable assets

| Tier | Types of tokens | Example |
| -------- | -------- | -------- |
| NS1     | Wrapped Native asset | WETH, WBTC, WAVAX, WFTM |
| NS2 | Crypto project governance token | UNI, SUSHI, CRV, LINK |


# Pool Listing Guideline

In this section, we outline our thought process and key criteria when selecting which yield farming or lending pools to be listed on Homora V2. 

Since each pool is associated with different level of risks,  and the major risks associated with the pool come from the risks of underlying assets within the pool. Therefore, Homora implement different listing/delisting guideline(s) that suitable for each types of pools based on the mapping of token tiers of assets within the pool.

## Pool Tiers
| Tier | Types of pools | Example |
| -------- | -------- | -------- |
| P1     | Pool with tokens in Tier 1-1    | WETH-USDC, WETH-DAI, WETH-WBTC, 3Pool
| P2 | Pool with tokens in Tier 1-2, 1-3, 2-2 |AAVE-ETH, MKR-ETH, UNI-ETH, sUSD-ETH, MIM-AVAX
| P3 | Pool with tokens in Tier 3-3 | - |

## Pool Listing Criteria

| Listing Criteria  | Tier P1 | Tier P2 |
| -------- | -------- | ------| 
| 1. Average 30-d TVL |  >3M | 1M |
| 2. Average 24-hr Trading Volume | >1M|>300k |
| 3. Possible Leverage Level | >1x|>1x |
| 4. APR without leverage |>3% | >20% |



# Pool Delisting Guideline

Homora V2 also implements a Pool Delisting Process to protect users from potential hacks through price manipulation. In order to evaluate whether a pool should be delisted or not, there will be 2 main criteria:

1. The underlying pool TVL falls below $200,000 for more than 2 consecutive weeks
2. The underlying pool is unable to leverage over 1X for over 3 months (considered on a case-by-case basis)
3. Emergency delisting 

## UI Changes on the DApp

Once a pool qualifies for delisting, we will give around 1 week to notify all users. Users who have positions opened on the delisted pool will be given a WARNING sign next to their Yield Farming page. Users will have the option to close position. 

This is to encourage you to close your position before the pool is removed from the contract. After a pool is delisted, the pool will no longer be listed on the Farm Pool page and all remaining positions will become liquidated.

## During A Normal Delisting Case

When a pool passes criteria for delisting, we will give 7 days notice in advance for users to close their positions. Users will have to close their positions to prevent forced liquidation.For users who closed positions within 7 days, no liquidation bonus will be deducted.After 7 days, 5% of the debt size will be deducted to be given out to liquidators as liquidation bonus.

## An Emergency Delisting Case
However, for an emergency delisting case (for instance, severe stablecoin depeg), there will also be emergency measures to delist related assets and pools.
 
For delisted lending assets, impacted users will only be able to withdraw their assets in Lend Page. 

For farming pools impacted by the delisted asset, related pools will be forced delisted immediately. Impacted users will still be able to withdraw remaining assets in Your Positions page.During an emergency delisting case, liquidation will happen immediately and no liquidation bonus will be deducted.

## Pool Re-listing
If the delisted pool happen to recover from the criteria, for example when it regaining TVL past $200,000 or gaining momentum again, we’ll consider relisting the pool on a case-by-case basis.

Once we are able to make sure the TVL exceeds a safety threshold that reduces the risk of getting hacked, the delisted pool may be relisted again.