Permissionless framework for quantifying the quality and risk of open finance.
Introducing Prime Rating
Prime Rating is a permissionless and comprehensive framework for quantifying the quality and risk of open finance protocols. Prime Rating offers a simple and comparable opinion in the form of a letter rating on a scale from A+ to D that represents the overall quality of an open finance protocol from a neutral view, based on publicly available data.
The Prime Rating system operates through a permissionless process governed by the Prime Rating DAO.
Prime Rating is built to improve the resiliency and functionality of the open finance ecosystem, to educate end-users about the functionalities and associated risks, and to create a benchmark for an open financial system that is permissionless, trustless, and transparent while respecting user sovereignty.
V.1 of Prime Rating evaluates protocols from the perspective of a protocol token holder based on smart contract quality, and fundamental quality.
Prime Rating is bootstrapped by PrimeDAO, a collective of experienced builders committed to the systemic advancement of open finance.
Prime Rating Scale
To provide a simple and comparable opinion, protocols are rated on a scale from A+ to D depending on the aggregated outcome of the smart contract, data, and fundamental review. The full scorecards can be found in the Prime Rating Database.
Average score > 85% & Min score > 70%
Average score > 75% & Min score > 60%
Upper medium-grade protocol
Average score > 60% & Min score > 40%
Average score > 50% & Min score > 35%
Lower medium grade protocol
Average score > 40% & Min score > 25%
Average score > 35%
Protocol not retable
Average score < 35%
To provide a neutral and all-encompassing opinion on open finance protocols, Prime Rating has developed a permissionless and modular framework that utilizes DAO best practices and decentralized data storage to operate as independently from any centralized entity as technologically possible.
By being permissionless, Prime Rating is more resilient, neutral, and able to leverage the wisdom of the crowd. All Prime Ratings and documents are publicly available and can be accessed non-exclusively by anyone with an internet connection, making Prime Rating a public good for the benefit of the systemic advancement of open finance.