$ENA Decentralized finance receives a rating: What's new?

The DeFi Pulse platform, in collaboration with Gauntlet, has launched a risk assessment tool called "DeFi Pulse Economic Security Rating." This tool evaluates decentralized finance protocols based on factors such as collateral volatility, relative collateral liquidity, user behavior, protocol metrics, and smart contract risks¹.

Key points

- *Rating scale*: The tool provides a rating that ranges from 1 to 100, assessing the risk of bankruptcy or risks that depositors may face.

- *Initial ratings*: Aave received a score of 95 ("Very Safe") and Compound received a score of 91 ("Very Safe").

- *Next project*: MakerDAO is set to be reviewed, with 100% of stablecoins borrowed.

Importance of this matter

The decentralized finance sector has experienced rapid growth, leading to the launch of many unverified protocols. This has resulted in costly mistakes and breaches. The DeFi Pulse Economic Security Rating aims to help users assess risks in protocols.