Overview
Exponential
Risk Ratings
Understanding risk is the key to smart DeFi investing. That's why we created Exponential Risk Ratings, an institutional-grade risk assessment system for DeFi investments. For the first time, thousands of risk vectors have been analyzed and distilled into a simple letter grade.
Fundamental risks can lead to major or total principal loss, even for savvy investors. Our innovative platform assesses these risks and maps dependencies across DeFi assets, protocols, and chains so investors can make informed decisions.
We've assessed:
210+
Protocols
280+
Assets
24
Blockchains
1,000+
Risk vectors
Adding more every day
Rating Scale
Our risk framework analyzes an opportunity holistically and assigns a rating based on the risks identified. The final rating factors in risk prevalence, importance, and convex relationships.
A
Lowest risk
Lowest risk of losing your investment with the highest security and risk management standards in DeFi.
B
Low risk
Low risk of losing your investment with good security or risk management practices in place.
C
Moderate risk
Moderate risk of losing your investment due to potential security and risk management issues.
D
High risk
High risk of losing your investment due to poor security and risk management.
F
Very high risk
The highest risk of losing your investment. Major gaps in security or risk management identified.
A risk rating is an informed opinion about a DeFi investment's relative risk. It provides a framework to help investors evaluate opportunities and is just one aspect of an investor’s decision-making process.
Framework
Our risk framework is based on data and independent research from our team of experts. Once a risk is identified, it is evaluated according to our rubric, assigned a risk score, then converted into a rating from A-F.
Sample risk factors
Assets
Protocols
Chains
DeFi Graph
The Exponential DeFi Graph makes our framework scalable by mapping dependencies across assets, protocols, and chains to identify potential risks.
Compounding
Assets in DeFi can be built on top of one another (“money legos”), creating compounding risk vectors.
Centralization
Single points of failure can be present at the asset, protocol, or blockchain level.
Composability
Risk compounds when one vulnerability impacts an entire opportunity.
Why we need risk ratings
Risk ratings provide an industry standard for investors to use when evaluating DeFi yield opportunities.
Cover your blind spots
Spot risks before it’s too late.
Convex Market Making
FRAX DAI USDC USDT
D
2.01%
Invest based on your risk tolerance
From risk averse to full degen, our risk ratings have you covered.
Stargate Bridging
USDC
D
3.62%
Venus Lending
USDC
C
9.7%
Aave Ethereum
USDC
B
8.66%
Identify market inefficiencies
Cut through the noise - information asymmetries, low liquidity, high transaction costs, human psychology - and discover the best risk-adjusted opportunities in DeFi.
Benqi Lending
DAI
D
9.72%
Aave Lending
sUSD
C
3.02%