#DeFiGetsGraded

How DeFi Gets Graded

1. Risk and Security Scores

Operational and Security Risk Frameworks: Institutions like Galaxy use frameworks (e.g., “SeC FiT PrO”) that break down DeFi protocol risk into several weighted domains—Security, Compliance, Finance, Technology, Protocol design, and Operations. Each domain is scored, and protocols receive an aggregate percentage indicating their relative risk level. .......!

2. Smart Contract Security: Many systems heavily weight whether the code is audited, how long it’s been on the mainnet, and whether any vulnerabilities have been exploited.. ..............