S&P Global Ratings has introduced a new risk assessment framework for on-chain lending vaults, according to The Block. The report says deposits in the sector have reached $10 billion, up from $1.5 billion two years ago. The framework is designed to evaluate several areas of risk tied to these vaults, including credit, liquidity, manager, blockchain, protocol, security, and governance risks. The first batch of vault assessments will be released later. The move adds a formal ratings-style approach to a segment of crypto lending that has grown sharply in size over the past two years, based on the figures cited in the report.
S&P Global Ratings has launched a new risk assessment framework for on-chain lending vaults, according to The Block.
The report said deposits in the sector have reached $10 billion, up from $1.5 billion two years ago. The framework will assess credit, liquidity, manager, blockchain, protocol, security, and governance risks, with the first batch of vault assessments set to be published later.
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