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3.1.3 Trust Anchoring

Core Objectives:

Eliminate "information asymmetry" through technical means, so that users can "see and trust" the system's reserves, decisions, and risk status, and rebuild the DeFi trust system.

Technology implementation:

§ Real-time audit of on-chain reserves: Treasury assets (USDT, LNK, crypto collateral, etc.) are automatically publicized through smart contracts, and the reserve rate (total value of reserve assets/total value of circulating tokens) is updated every hour. Users can directly query through the on-chain browser to prevent "false reserves";

§ The whole process of governance is on-chain: from proposal initiation, discussion to voting results, and execution records, all are certified through on-chain contracts, which cannot be tampered with and can be traced throughout the process. Any user can verify "whether the decision is in line with the community consensus";

§ Transparency of risk parameters: core parameters such as dynamic mortgage rate, liquidation threshold, and Rebase reward ratio are publicized in real time, and their adjustments need to be voted by the community and recorded on the chain to avoid "black box operations".

Compared with the traditional model:

Unlike the "opaque parameters" of protocols such as MakerDAO, LynkCoDAO makes "trust" no longer dependent on "third-party endorsements", but implemented through "on-chain data self-verification", which is the ultimate form of Web3 trust mechanism.

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