#DeFiGetsGraded : A Historic Milestone in DeFi Credit Assessment

#DeFiGetsGraded symbolizes a monumental shift in decentralized finance—this marks the first formal credit rating ever awarded to a DeFi protocol. On August 8, 2025, S&P Global Ratings assigned Sky Protocol (formerly Maker Protocol) a B-minus rating with a stable outlook, applying traditional credit frameworks to the on-chain realm .

The assessment covers Sky’s stablecoin liabilities—USDS, DAI, and their interest-bearing variants—excluding governance tokens. Despite being speculative grade, it unlocks precedent-setting transparency, institutional-grade risk evaluation, and a potential bridge for wider institutional integration in DeFi.

S&P flagged key vulnerabilities: high depositor concentration, centralized governance with co-founder Rune Christensen holding ~9% of governance tokens, low voter participation, weak risk-adjusted capital (around 0.4 %), and the absence of a regulatory framework. Nonetheless, Sky Protocol’s minimal credit losses since 2020, diversified liquidity reserves, and external smart contract audits underscore its resilience.

This watershed moment not only introduces a credible credit metric to DeFi but also paves the way for more nuanced risk-based pricing of DeFi yields, aligning them with traditional financial paradigms.