"DeFi Gets Graded" is a recent initiative by DeFi Pulse, in partnership with Gauntlet, to provide a risk assessment tool for decentralized finance protocols. It assigns a "DeFi Pulse Economic Safety Grade" to different projects, giving users a single, comparable value for measuring risk. This grade is based on various factors, including smart contract risk, collateral volatility, user behavior, and liquidity. The goal is to help users assess risks in the rapidly growing and often unaudited DeFi space, which has seen numerous costly hacks and mistakes. For example, Aave and Compound were among the first protocols to receive grades.
