#DeFiGetsGraded

Basic meaning: The label DeFiGetsGraded refers to the initiation of applying standardized grading frameworks to decentralized finance (DeFi) protocols.

Most recent significant step: S&P Global has awarded the first credit rating to a DeFi protocol named Sky, granting it a rating of B-.

Evaluation dimensions and objectives: These evaluations measure factors such as smart contract security, liquidity depth, token model, governance, team reputation, and user adoption.

Potential implications:

Benefit for institutions: Provides familiar standards that help traditional investors enter DeFi with confidence.

Possible challenge: The introduction of such centralized elements may be seen as a threat to the principles of decentralization that DeFi relies upon.