Technical risk in DeFi is notoriously complicated. DeFiSafety mitigates this through a new product: Contract Scores. In giving a daily technical risk score to each address an investor may consider interfacing with on any number of chains, we make risk analysis simple.
DeFiSafety’s Contract Scores product is designed to give investors simple technical ratings on the addresses of DeFi products. These ratings are particular to an address on a chain.
The Contract Score combines several elements: contract maturity, software quality and recent hacks.
Our score only looks at the smart contract logic and values of this and related contracts. This means it is a technical risk score only. The financial ROI, TVL locked and enthusiasm of the community are not considered in the score.
A mature contract is one that has held significant value for a significant period of time without hacks. A mature contract is considered safe even if its software quality score is low.
For contracts with a low maturity score, the DeFiSafety score and the audit score take precedence. The DeFiSafety score considers the process quality of the overall protocol. The audit score is particular to the contract.
To join the Smart Contracts beta, please fill out this form: https://www.defisafety.com/join-beta
AAVE is of course highly secure, with a 100% contract score. It is a very old contract (376 days) giving it a 100% maturity score. In addition it has a very high PQR score (91/100) and a perfect audit score. All of this combines to a perfect contract score.
This yearn V2 vault is only half as old as the AAVE vault and is smaller (with a $12M balance). While it has a very high PQR and audit score, this lower maturity score drives a lower Contract Score.
This pool is still building maturity and thus its low PQR and Audit drags the score down.
This is just a snippet of the data that Contract Scores offers it’s clients. At the time of writing, we have over 30,000 different contracts scores available. If you would like to request Contract scores for a specific protocol, please click here.