#DeFiGetsGraded Economic Security Rating of DeFi Pulse

DeFi Pulse, together with Gauntlet, launched a rating system (0 to 100) for DeFi protocols, evaluating:

Collateral Volatility

Liquidity

User Behavior

Protocol Parameters

Smart Contract Risks

Recent examples:

Aave: 95 (“very safe”)

Compound: 91 (“very safe”)

2. First credit rating from S&P Global for a DeFi protocol

For the first time, S&P Global granted a credit rating to a DeFi protocol: Sky Protocol (formerly MakerDAO).

Rating: B- with stable outlook

Factors evaluated:

Credit risk of its stablecoin USDS

Liquidity reserves (USDC and tokenized funds)

History of low credit losses

Weak points: centralized governance, low capitalization ratio (~0.4%) and regulatory risks

🌍 Why is it important?

More transparency: Users can compare protocols with clear metrics of security and risk.

Bridge to traditional finance: S&P credit ratings bring DeFi closer to investors and institutions.

Decentralization vs. control debate: Some see the ratings as progress; others, as a threat to the decentralized spirit of DeFi.