How We Rate Safety
Our methodology for assessing the safety of cryptocurrencies, protocols, and yield opportunities.
Our Mission
We help crypto-curious savers earn yield safely. Our safety ratings are designed to help you understand the risks before you deposit your money. We prioritize transparency, honesty, and helping you make informed decisions.
Safety Score Methodology
Our safety scores are calculated using five key factors, each weighted based on importance:
1. Audit Age (20% weight)
How recently has the protocol been audited by reputable security firms?
- 100 points: Audited within 2 years
- 80 points: Audited within 1-2 years
- 60 points: Audited within 6-12 months
- 40 points: Audited more than 1 year ago or no recent audit
2. Key Control (25% weight)
Who controls the protocol's keys? Decentralization reduces single points of failure.
- 100 points: DAO-governed (fully decentralized)
- 85 points: Multisig (multiple parties must agree)
- 40 points: Single entity control
- 20 points: Unknown or unclear
3. Liquidity Depth (20% weight)
How much money is locked in the protocol? Higher TVL (Total Value Locked) means more liquidity and less risk of issues.
- 100 points: $1B+ TVL
- 80 points: $100M+ TVL
- 60 points: $10M+ TVL
- 40 points: $1M+ TVL
- 20 points: Less than $1M TVL
4. Time Tested (20% weight)
How long has the protocol been operating without major incidents?
- 100 points: 3+ years
- 80 points: 2-3 years
- 60 points: 1-2 years
- 40 points: 6-12 months
- 20 points: Less than 6 months
5. Peg/Oracle Stability (15% weight, stablecoins only)
For stablecoins: How well does it maintain its $1 peg? For other assets: How reliable are the price oracles?
- 100 points: Stable peg maintained consistently
- 60 points: Occasional small deviations
- 30 points: Frequent or large deviations
Risk Levels
Low Risk (80-100)
Well-established protocols with strong security, high liquidity, and proven track records. Suitable for savings, but still not FDIC insured.
Medium Risk (60-79)
Protocols with good security practices but may be newer, have lower liquidity, or have some concerns. Use with caution and start small.
High Risk (0-59)
Protocols with significant concerns: new, unaudited, low liquidity, or unclear control. Not recommended for savings.
Data Sources
We gather safety data from multiple sources:
- Audit reports: Published security audits from firms like Certora, OpenZeppelin, Trail of Bits, and others
- On-chain data: TVL, transaction volumes, and protocol metrics from blockchain explorers
- Protocol documentation: Official documentation, governance proposals, and public communications
- Historical data: Track record of incidents, upgrades, and protocol changes
Update Frequency
Safety scores are reviewed and updated:
- Monthly for established protocols
- After major audits or security incidents
- When significant protocol changes occur
- When TVL changes significantly (50%+ change)
Last updated: 1/20/2026
Important Disclaimers
- Not financial advice: Our ratings are educational, not investment advice
- Not FDIC insured: Unlike bank deposits, crypto yield is not insured
- Risks exist: Even "low risk" protocols can have issues
- Do your own research: Always verify information yourself
- Start small: Never invest more than you can afford to lose
How to Use These Ratings
- Start with low-risk options: If you're new, stick to protocols rated "low risk"
- Read the breakdown: Understand why a protocol got its rating
- Check multiple sources: Don't rely solely on our ratings
- Test first: Always test with a small amount before depositing more
- Monitor changes: Ratings can change as protocols evolve
Questions or Concerns?
If you have questions about our safety ratings or methodology, please contact us. We're always working to improve our methodology and provide the most accurate information possible.