The service is already available but it is still at the developing phase.
Decentralized finance (DeFi) project investors were offered a tool to analyze the level of risk of investing in startups. The service was developed by Gauntlet team. DeFi Pulse, an aggregator of data on the decentralized finance market, became one of the first users of the tool. Information about this appeared on the blog of Gauntlet developer John Morrow.
The tool is currently in the alpha version. According to the blog, investors interested in investing in DeFi projects will be able to receive information about the risk level of startups. The tool is still in rework mode. At the moment, it does not analyze a number of factors that can reveal the real level of risk of investing in a particular project. For example, the tool does not take into account the security data of smart contracts.
It is known that when assessing the risk of investing in DeFi projects, the system takes into account the analysis of data on changes in the liquidity level of a startup. The tool also examines indicators of asset volatility.
To evaluate projects, the Gauntlet team proposed a risk scale. Each startup can score from 0 to 100 points. The higher the score, the safer the project.
At the press time, data on the evaluation of DeFi startups using the Gauntlet tools are integrated only into a few project cards – leaders in the DeFi Pulse rating in terms of the total volume of funds blocked for their needs.
Many market participants observe DeFi as a bubble that has already burst. Despite some negative opinions about projects from the decentralized finance sector, the team of the Pantera Capital investment company preferred the assets of such projects to classic cryptocurrencies.
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