#DeFiGetsGraded #DeFiGetsGraded

DeFi Gets Graded: What's Happening?

DeFi Pulse, in collaboration with Gauntlet, has launched a risk assessment tool called the DeFi Pulse Economic Safety Grade. This tool grades DeFi protocols based on factors like collateral volatility, relative collateral liquidity, user behavior, protocol parameters, and smart contract risks ¹.

Key Highlights

- *Grading Scale*: The tool provides a score between 1-100, assessing the risk of insolvency or risk to depositors.

- *Initial Grades*: Aave scored 95 ("very safe") and Compound scored 91 ("very safe").

- *Next Project*: MakerDAO is slated for review, with 100% stablecoin borrows.