bringing traditional credit ratings into the DeFi space is a double edged sword
On one hand it could be a positive step toward attracting large institutions that rely on familiar risk assessment tools before committing capital, thereby boosting liquidity and overall trust
On the other hand, introducing a centralized authority to rate decentralized protocols risks opening the door to outside influence and re-introducing the very centralization DeFi was designed to avoid The real challenge will be finding a balance leveraging the trust and recognition of traditional markets without allowing these entities to become the ultimate gatekeepers of legitimacy or quality in DeFi.
