Decentralized finance reached a major milestone in December 2024, as the total value locked surpassed the previous cycle highs. DeFi’s resurgence, however, is accompanied by an increase in the complexity of assets, structures, and their associated risks. It is difficult for any user to confidently navigate the market, as the availability of risk metrics pale in comparison to the plethora of opportunities.
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With investors including S&P Global, Coinbase and Polychain, Credora has established itself as a leader in technology-driven ratings for onchain finance. Credora has launched a consensus ratings protocol – a first-of-its-kind innovation designed to standardize risk and provide credible ratings for all of DeFi. The Credora Network combines transparent methodology development and collective intelligence from industry-leading risk experts.
Early participants include Amber, Fasanara, GSR, Hashkey, Hypernative, Karpatkey, RE7, Rockaway, XBTO, and over 20 other institutions, who bring deep expertise in DeFi markets. The Credora Network aims to elevate the standard in DeFi risk assessment and in doing so, accelerate adoption.
“The user experience problem in DeFi is real,” said C.J. Fong, Head of Sales in APAC and EMEA at GSR. “Users encounter numerous complicated and diverse options when deploying in DeFi, with limited visibility of the risk they’re taking. The Credora Network solves this, condensing the expertise of multiple credible experts into simple risk ratings, unlocking the next wave of growth.”
Consensus ratings are published onchain, enabling seamless risk analysis for users and programmatic innovation at the smart contract level.
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“Onchain ratings are critical to the continued maturity of protocol risk management while also creating new opportunities for dynamic asset allocation,” said Eyhab Aejaz, CEO of Breach Insurance. “I’m particularly excited about credible ratings as they support the development of regulated insurance products that protect users against tail risk, which have historically been challenging to underwrite.”
Although the Credora Network is purpose-built for DeFi, it presents a model that can be extended to other emerging asset classes where ratings frameworks are underdeveloped.
“The Credora Network presents a challenge to the traditional, centralized way ratings are constructed. It’s a natural fit for nascent asset classes where risk factors are evolving rapidly. By leveraging community-driven standards and the wisdom of the crowds, the network enables credible and scalable risk metrics for DeFi. This paves the way for a safer and stronger ecosystem,” adds Darshan Vaidya, CEO & Co-founder of Credora.
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Source – PR Newswire
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