According to @stani 's post on Uni ([POLL] Should UNI Be Listed as an Aasset?).
We can follow the AAVE risk assessment framework to evaluate the new asset in a objective and quantifiable way.
Risks per Asset
HUSD is a stablecoins launched by Stable Universal with a partnership with Paxos Trust. Before AAVE, HUSD has been supported by Curve, Tokenlon , Uniswap, Mooniswap (in liquidity mining program), dForce, ForTube. And other DeFi protocols are in the progress to support HUSD: Cream (voting is going on), MakerDAO (community green light)
HUSD Smart contract Risk: C+
The HUSD contract launched in July 2019 has a small number of transactions, just like BUSD most of the transactions are likely to happen off-chain on the centralized exchange like Huobi, FTX and HBTC.
Since the smart contract is so recent, HUSD is not suggested to be used as collateral at present time.
HUSD Counterparty Risk: B-
HUSD is centralized and backed by real USD, with the same custodian as BUSD, with a centralization risk factor at D+ and trust level at A. (same score as USDC and BUSD)
The administrative feature is, Stable Universal is the issuer and Paxos Trust is the custodian. A monthly audit attests to the consistency of the USD bank reserves versus the on-chain circulation supply of USD.
HUSD Market Risk: B-
The market capitalisation of HUSD has reached $280M now, which the 6th stablecoin in the world, larger than TUSD, sUSD.The trading volume for HUSD is around $22 million a day, mostly happened on Huobi and HBTC. (this volume is same as DAI when the assessment done on DAI )As a stablecoin backed by USD, the volatility is very low.
According to the AAVE risk assessment framework, the risk rate of HUSD is lower than BUSD and higher than sUSD.