DeFi Safety

DeFi Safety is an independent rating organization that rates decentralized finance products for an overall security score based on transparency and adherence to best practices. DeFi Safety is developing and applying these processes to evaluate existing and new blockchain investment protocols, based on software process, transparency, and best practices.

The company works to provide accurate, unbiased, and trustworthy reviews for DeFi users. To do this, DeFi Safety offers the company's Process Quality Reviews (PQRs), which follow a standardized and established process made transparent to users to allow those users to compare scores across projects. Further, the company has stated it is committed to the principles of independence, objectivity, and transparency to remain neutral and trustworthy.

DeFi Safety's Process Quality Reviews (PQRs) are transparent assessment scores that scrutinize five key aspects of deployed DeFi protocols to provide safety ratings. As part of the process, DeFi Safety

• scrutinizes a protocol's smart contracts and team to understand the development of their code and the team's history as individuals and together,
• assesses documentation and accompanying commentary,
• verifies the test suite used to validate the application before it deploys to the mainnet,
• confirms the presence and quality of third-party software audits and bug bounties,
• verifies documentation and disclosure of special administration access control to the protocol, and
• and assesses the oracle, if any is used, that a protocol uses.

The PQR process delivers a score to a protocol, with a high score indicating that a protocol follows best practice in terms of development, documentation, testing, security, and transparency, intended to be trustworthy and safe while accounting for and guarding against potential risk vectors. However, DeFi Safety notes that a high score on the PQR does not indicate that a protocol is a good investment, but rather that the protocol is less likely to be scammed or exploited.

As of May 2022, DeFi Safety introduced the company's Chain Score, which works to score the network on which a protocol exists. This includes offering a score on the specific contract, for the protocol that created the contract, and a score for the chain on which the contract is deployed. This scoring is intended to inform a user's decision-making and offer increased transparency for a user's DeFi strategy. At the launch of the Chain Scores, DeFi Safety offered reports on the following:

• Ethereum
• BnB Chain
• Avalanche
• Solana
• Tron
• Arbitrum
• Polygon
• Terra
• Ronin
• Fantom

This comes with an expectation on the part of the company that it will deliver more chain scores as they continue to build the product with all major TVL chains and eventually have reviews of asset chains such as Bitcoin and Litecoin.

Along with the company's Chain Scores, in May 2022, DeFi Safety introduced the company's Contract Scores, intended to give a daily technical risk score to each address that an investor may consider interfacing with on any number of chains. The Contract Score is intended to give investors simple technical ratings on the address of DeFi products, and the ratings are particular to an address on a chain. The Contract Score combines elements such as contract maturity, software quality, and recent hacks to develop the score. And DeFi Safety offers a technical score only, looking at the smart contract logic and values of the smart contract only, and does not analyze the financial ROI of a smart contract.