S&P Global Ratings on Oct. 5 introduced Vault Risk Assessment, or VRA, a risk evaluation framework for on-chain lending vaults. The framework is designed for vaults that provide liquidity to blockchain lending markets backed by crypto assets or tokenized real-world assets (RWA) as collateral. Under the methodology, S&P said it will assess a mix of factors, including the credit risk of underlying assets, protocol and blockchain risk, vault manager risk, and liquidity. The framework uses rating symbols such as AAA(v), with AAA(v) indicating the lowest level of risk within the system. S&P also drew a clear line between VRA and its conventional ratings work, saying the assessment is not a traditional credit rating. It added that VRA does not evaluate a vault’s yield and does not guarantee its credit quality.
According to BlockBeats, S&P Global Ratings on Oct. 5 published Vault Risk Assessment, or VRA, a risk assessment framework for on-chain lending vaults.
The framework applies to vaults that provide liquidity to blockchain lending markets where collateral consists of crypto assets or tokenized real-world assets, or RWA. S&P said the assessment will weigh factors including the credit risk of underlying assets, protocol and blockchain risk, vault manager risk, and liquidity.
VRA uses rating symbols including AAA(v), with AAA(v) representing the lowest risk.
S&P said VRA is not a traditional credit rating. It also does not assess vault yield or guarantee a vault’s credit quality.
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