DefiLlama's Universal Token Rating System Grades Top-Tier Tokens
DefiLlama and Forgd have introduced an institutional token rating system that covers 128 of 149 listed tokens. The system, called Universal Token Rating, uses a AAA-to-CCC scale to grade assets based on their disclosure and performance scores.
The disclosure score assesses the project's transparency by checking for missing information, weak liquidity arrangements, and insider-friendly tokenomics. It then multiplies this score with the performance score, which examines liquidity, spreads, venue coverage, and market-maker conduct. This approach is designed to prevent strength in one area from concealing serious problems in another.
According to DefiLlama's Head of Research Ryan Celaj, 'We're multiplying a project's disclosure and performance scores deliberately, because they are both necessary conditions for credibility.' The top-rated token currently is Uniswap, which holds the only AAA grade with a composite score of 60.80.
The rating system has been developed in collaboration with Forgd, a token advisory platform that provides market-maker monitoring software free of charge to poorly rated projects. This allows them to submit more data for review and potentially improve their scores.