#DeFiGetsGraded
- It is a social trend/debate that reflects the community and institutions beginning to assess risks, transparency, and rating DeFi protocols. Recently, there have been signs that traditional organizations are moving closer: for example, a report about a major credit rating agency assigning a rating to a DeFi protocol for the first time — a step indicating that DeFi is being approached with traditional credit analysis frameworks.
The goal of “scoring” is to provide a risk assessment framework (smart contract, governance, liquidity, reserve partners, token model) for institutional and individual investors to better understand the safety and durability of the product. Open-source risk assessment tools and checklists have emerged to support this.
- It is a social trend/debate that reflects the community and institutions beginning to assess risks, transparency, and rating DeFi protocols. Recently, there have been signs that traditional organizations are moving closer: for example, a report about a major credit rating agency assigning a rating to a DeFi protocol for the first time — a step indicating that DeFi is being approached with traditional credit analysis frameworks.
The goal of “scoring” is to provide a risk assessment framework (smart contract, governance, liquidity, reserve partners, token model) for institutional and individual investors to better understand the safety and durability of the product. Open-source risk assessment tools and checklists have emerged to support this.