#DeFiGetsGraded - The introduction of traditional credit ratings in DeFi, like S&P Global's B- rating for Sky Protocol, presents a double-edged sword. On one hand, it provides a standardized risk assessment framework, potentially increasing institutional trust and adoption. On the other, it may compromise decentralization principles by introducing centralized elements. To balance this, DeFi protocols must weigh the benefits of external validation against the risks of centralization, prioritizing transparency, robust risk management and further decentralization.
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