#DeFiGetsGraded Overview of the DeFi Rating System

The DeFi rating system evaluates protocols based on factors such as risk, security, decentralization, or economic safety. This system aims to help users make informed decisions by quantifying the reliability or performance of DeFi projects. For example:

- DeFi Pulse Economic Security Score: Launched in October 2020 by DeFi Pulse and Gauntlet Networks, this system provides a score (0–100) to protocols such as Compound (91%) and Aave (95%), measuring bankruptcy risk based on collateral and borrowing patterns. It is designed to guide investors, especially beginners, towards safer DeFi investments.