🪬DeFi Meets Wall Street: First-Ever Credit Rating to a DeFi Protocol Sky (Maker) Get a B- Rating
🟢 The Event:-
•S&P Global just issued its first-ever credit rating for a DeFi protocol.
•Sky (formerly Maker) received a B- rating, making history as the first DeFi protocol to wear a TradFi-grade badge.
🟡 What B- Really Means:-
•Speculative Grade → Obligations can be met today, but fragile if shocks hit.
Translation: Sky works, but it’s vulnerable.
•This is not investment grade—risk remains high.
🔵 Why Sky Got B:-
•Governance Centralization → Few token holders control too much.
•Weak Capitalization → Thin buffers against losses.
•Regulatory Uncertainty → No clear global rules for DeFi.
•Liquidity Risk → A few whales dominate deposits → potential “bank run” problem.
🔴 Why This Rating Matters:-
•Bridge of Trust → Institutions now see DeFi risk through a lens they already use.
•Common Language → Credit ratings = shorthand for Wall Street due diligence.
•Door Opener → More institutions can now evaluate Sky (and DeFi) with confidence.
🟣 The Ripple Effect:-
•DeFi Protocols → Others will follow; Ratings become a new norm.
•TradFi Investors → Expect more engagement, more allocation.
•Maturity Push → Protocols must decentralize governance, boost reserves, and prove resilience to climb higher on S&P’s ladder.
🚀 Final Takeaway:-
A simple B- just gave DeFi its first TradFi passport.
Now the challenge is clear: Decentralize, Capitalize, and De-Risk—or Stay Speculative.
