Ratings
At Judge Finance, safety and transparency are foundational to YieldCoin. Our independent on-chain ratings module ensures that every rebalancing decision prioritizes risk-adjusted yields, routing capital only to battle-tested protocols and stablecoins. Leveraging Chainlink's decentralized infrastructure, we integrate institutional-grade frameworks to eliminate hidden risks, providing users with verifiable confidence in every allocation.
This module draws from two proven sources:
Protocol Ratings: Adapted from Galaxy Research's SeC FiT PrO framework, focusing on operational risks across six weighted domains (Security 20%, Protocol 20%, Compliance/Finance/Technology/Operations 15% each). Scores range from 16 (high risk) to 100 (low risk), with thresholds ensuring only protocols scoring >50 qualify for allocation. We fork and enhance this open-source tool via Chainlink CRE for dynamic, off-chain computations, incorporating real-time data like audit histories and governance activity.
Stablecoin Ratings: Sourced from S&P Global's Stablecoin Stability Assessments (SSAs) via Chainlink oracles. SSAs evaluate peg stability on a 1 (very strong) to 5 (weak) scale, based on asset quality, liquidity, governance, and regulatory factors. We filter for stables rated 1-3 to maintain pure, low-risk exposure (e.g., USDC typically 1-2, USDT 2-3).
These ratings feed directly into our CRE-triggered rebalancing, combining with APY and liquidity data to select optimal strategies. All scores are transparent, queryable on-chain, and updated periodically without admin intervention—aligning with our immutable, no-admin-keys design.
How Ratings Work in YieldCoin
Integration Process:
CRE computes protocol scores off-chain using Galaxy's methodology, pulling verifiable inputs via Chainlink oracles (e.g., exploit data from Rekt.news, audit reports from Cyfrin).
SSA scores for supported stables (USDC, USDT, GHO, etc.) are fetched real-time via Chainlink APIs on Base, ensuring cross-chain consistency through CCIP.
Composite risk adjustments: Yield opportunities are weighted by (net APY * (1 - normalized risk score)), with automatic rejection for sub-threshold assets.
Example Ratings
Below are illustrative ratings for key protocols and stables (based on Dec 2025 data; actual scores update dynamically via CRE). We only allocate to those meeting our conservative thresholds.
Protocol Ratings (Galaxy SeC FiT PrO Adapted)
Aave
65
High Security (audits, bug bounties); Strong Protocol (governance, open-source).
Moderate Compliance (regulatory hooks evolving).
Yes (>50)
Compound
62
Proven track record; Solid Technology (wallet infrastructure).
Operations lag in real-time monitoring.
Yes (>50)
Morpho
58
Innovative lending; Good Finance domain (reporting maturity).
Newer protocol; Higher relative risk in upgrades.
Yes (>50)
Fluid
55
Efficient rehypothecation controls; Compliance potential.
Latency in cross-chain ops.
Yes (>50)
Pendle
48
Strong yield abstraction.
Elevated Protocol risk (complex pts mechanics).
No (<50)
Stablecoin Ratings (S&P SSA)
USDC
1-2
Strong asset backing (U.S. Treasuries); High liquidity; Regulatory compliance.
Yes (1-3)
USDT
2-3
Broad adoption; Reserves audited; Global reach.
Yes (1-3)
GHO
2
Aave-backed; Transparent overcollateralization.
Yes (1-3)
USDe (Ethena)
3-4
Synthetic design; Higher peg volatility risk.
Borderline/Monitored
Ratings are not static—CRE ensures real-time adaptability, with EMERGENCY_PAUSER activation if scores drop critically (e.g., due to depegs or exploits).
This Chainlink-native approach positions YieldCoin as the safest, most efficient yield layer for stablecoins.
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