Announced this Tuesday, October 13, 2020, DeFi Pulse unveiled a new risk indicator feature that aims to improve crypto investors’ awareness and radar regarding decentralized finance (DeFi) risks. This brand new feature is still in its alpha phase. However, it can now allow users to discern the hazards present on a given on-chain protocol. Because the new safety rating feature is still admittedly in development, some risk factors may fall on the cracks – notably, smart contract risks.
The new DeFi Pulse offering will be called the: “DeFi Pulse Economic Safety Grade.” It is the fruit of the firm’s partnership with the notable blockchain simulation company, Gauntlet Networks.
According to the announcement, the Economic Safety Grade will rate protocols from a scale of 0 to 100. It will gauge a particular DeFi protocol’s insolvency risks – the higher the score it gets, the safer it is for investors to engage on. This new feature can also be seen by many as the sector’s latest move to propel itself onto the mainstream and become more appealing and accessible to new users.
To test the safety ratings feature’s ability, DeFi Pulse ran the Economics Safety Grade on the prominent lending DeFi protocol Compound and Aave. Upon testing, Compound received a score of 91%, while Aave got 95%. DeFi Pulse announced that MakerDAO is next in line for testing.