For the first time in its history, S&P Global gives a credit rating to a decentralized finance (DeFi) protocol called Sky, and the rating was B-. This means that crypto protocols are starting to come under the radar of large institutions with a risk assessment approach similar to that of banks and traditional markets.
The advantage here is that financial institutions love these numbers and ratings, which could open the door to greater liquidity and increase the confidence of large investors who were hesitant to enter the DeFi world. The rating translates the language of blockchain into the language of banks, clarifying risks, return expectations, and security levels.
However, at the same time, the introduction of traditional assessment tools may bring along a centralized mentality. These ratings are based on criteria set by a single party, which contradicts the philosophy of DeFi that is built on decentralized decision-making and distributed control. If protocols start to operate to satisfy rating agencies, there is a risk that we will lose the spirit of innovation and independence that characterizes the field.
Credit ratings can be a bridge for institutions, but we must maintain transparency and community governance to avoid replacing decentralization with disguised centralization.
And this is just an opinion 😊👻