#DeFiGetsGraded P Global has assigned its first-ever credit rating to a DeFi protocol, giving Sky a B- rating, marking a significant milestone in institutional adoption of decentralized finance. This could pave the way for more traditional financial institutions to participate in DeFi by providing essential risk assessment frameworks.
š¬ How will the introduction or influence of traditional credit ratings affect these foundational decentralized principles of DeFi? The Impact of Traditional Credit Ratings on DeFi's Foundational Principles: A core point of debate is how the introduction of centralized elements like credit ratings will affect the decentralized and trustless nature of DeFi. People are discussing whether this is a necessary step for mainstream adoption or a compromise of the very principles DeFi was built on.
* Institutional Adoption and Risk Assessment: The credit rating is seen as a major milestone for institutional involvement in DeFi. The conversation revolves around whether such frameworks will provide the necessary risk assessment tools for traditional financial institutions to feel comfortable participating in the space