#DeFiGetsGraded
** What has happened:**
S&P Global has assigned a credit rating for the first time to a stable DeFi protocol: Sky Protocol (formerly MakerDAO), granting a B- with a stable outlook.
** Key aspects evaluated:**
Credit risk of USDS and its obligations.
Liquidity reserves in USDC and tokenized money market funds.
History of low credit losses even in adverse times.
** Highlighted risks:**
Centralized governance, with power concentration and low participation in voting.
Weak capitalization: only a 0.4% risk-adjusted capital ratio.
Regulatory uncertainty regarding DeFi.
Nonetheless, the stable outlook indicates that S&P believes that Sky can meet its commitments under normal conditions.
** Importance of the moment:**
This move symbolizes the recognition of DeFi within the traditional financial framework. It represents a bridge towards institutional adoption, as it introduces rigorous standards for assessing the strength of these protocols.