#DeFiGetsGraded

Defi gets graded translates to "Defi receives a rating" or "Defi is rated". It refers to the process of evaluating the risks and the solidity of a decentralized finance (DeFi) project.

As the DeFi ecosystem is very dynamic and constantly evolving, there is no central authority overseeing or regulating these projects. Therefore, rating frameworks have been developed to help users and investors understand the associated risks before committing their capital.

What factors are evaluated in a DeFi rating?

To determine the rating of a project, several key aspects are analyzed:

* Smart Contract Risk: Smart contracts are examined for potential vulnerabilities, failures, or errors in the code that may be exploited by hackers. Security audits conducted by specialized companies are crucial at this point.