Breaking down the Credora DeFi Rating Scale. A single, quantitative standard for comparing risk across DeFi protocols, assets, markets, and vaults. One scale. Clear differentiation across DeFi risk 🧵

1/ Each rating maps to a Probability of Default (PD) range, directly comparable to TradFi credit ratings (S&P, Moody’s, Fitch). Think of it as risk normalized for DeFi: A+ → tokenized treasuries–level risk A–B range → where most DeFi markets live C–D → high default risk

2/ Credora ratings use a single PD Curve based on 30+ years of credit agency historical data. That means: ▪ Consistent risk comparison across DeFi ▪ Alignment with TradFi risk language institutions already trust ▪ Better risk management decisions

4/ Official links: &