#DeFiGetsGraded

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

As the DeFi ecosystem is very dynamic and constantly evolving, there is no central authority supervising 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, flaws, or errors in the code that could be exploited by hackers. Security audits conducted by specialized firms are crucial at this point.