How Protocol Health Works
Understanding our S&P-style rating system for DeFi protocols
The Rating System
Every protocol is scored across 5 key dimensions, with a maximum total score of 100 points
Grade A (90-100)
Exceptional Safety
Grade B (70-89)
Strong Performance
Grade C (60-69)
Acceptable Risk
Grade D (50-59)
High Risk
Grade F (0-49)
Very High Risk
The 5 Key Dimensions
1. Security (30 points max)
Audit history, age, and exploit tracking
- • Protocol Age: +10 points for 3+ years, +7 for 1.5+ years, +4 for 6+ months
- • TVL as Security Signal: +5 points for $1B+ TVL (battle-tested by market)
- • Base Score: 15 points (assumes basic security measures)
Example: Aave (3+ years, $10B TVL) = 15 + 10 + 5 = 30/30
2. TVL Stability (20 points max)
Liquidity depth and protocol stability
- • $5B+ TVL: +10 points
- • $1-5B TVL: +7 points
- • $500M-1B: +5 points
- • $100-500M: +3 points
- • Base: 10 points
3. Decentralization (20 points max)
Multi-chain deployment
- • 4+ chains: +10 points
- • 2-3 chains: +5 points
- • Base: 10 points
4. Financial Health (20 points max)
Revenue and sustainability
- • Based on TVL tiers (same as TVL Stability)
- • Higher TVL = more revenue potential
5. Community (10 points max)
Engagement tracking
- • 1.5+ years: +3 points
- • Multi-chain: +2 points
- • Base: 5 points
FAQ
Can I trust a C-grade protocol?
C-grade means acceptable risk. Not unsafe, but requires caution.
How often are scores updated?
Daily at 12:00 UTC. Track changes on protocol pages.
Is this financial advice?
No. We provide risk analysis, not investment advice. DYOR.