DeFi just got its version of a credit rating agency, and it’s already handing out grades. Credora by RedStone assigned weETH, the liquid restaking token from Ether.fi, an A+ rating on June 26, making it the first liquid restaking token to receive an independent risk assessment of this caliber.
The rating comes with a 0.098% annualized Probability of Default. To put that in perspective, that’s roughly the kind of default risk you’d associate with investment-grade corporate bonds in traditional finance. Except this time, the underlying asset lives entirely onchain.
What the rating actually measures
Credora doesn’t just eyeball a protocol’s TVL and call it a day. The platform runs 100,000 Monte Carlo simulations to stress-test each asset’s risk profile. At a 0.098% default probability, the answer is: almost never.
The methodology starts with a foundational Probability of Default of 0.16%, then adjusts up or down based on several factors. Reserves transparency, governance quality, and market adoption all feed into the final score.
