DeFi Pulse Introduces Safety Rating Metric

DeFi Pulse Introduces Safety Rating Metric

By Abhimanyu Krishnan | News | 14 Oct 2020


DeFi data platform DeFi Pulse has launched a new safety rating metric in partnership with digital asset modeling platform Gauntlet, according to an announcement made on October 14.

  • DeFi Pulse and Gauntlet launched the alpha version “Economic Safety Grade”, with the intention of informing users of the risk of investing in on-chain protocols
  • The new metric is aimed at helping investors quantify the risks associated with DeFi investment
  • It uses on-chain data, as well as data from centralized and decentralized exchanges to quantify risks across yield products, starting with collateralized lending
  • Specifically, the metric takes into account user behaviour, collateral volatility, relative collateral volatility, protocol parameters and smart contract risk
  • It does not take into account smart contract vulnerabilities, which have been the source of problems in protocols like YAM and Opyn
  • At launch, the risk metric will be available for Aave (AAVE) and Compound (COMP); they have scored 95% and 91% respectively

Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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