Life is full of risk, and the world of DeFi is no exception to that. In this article, we’ll look at YaspFi’s innovative Trust Score system: what is it, how it works and how to use it to your advantage.
In technical terms, trust score is a rating based on a few dozen risk-correlated parameters and factors. In more basic terms, a special algorithm periodically tracks and weighs up all of those factors, does some number crunching and produces a numerical score ranging from 10.0 to 0.0, with 10.0 being the least risky/safest rating and 0.0 being the most risky/less safe one.
Our main goal behind developing the Trust Score is to make any risks associated with DeFi instruments you see in YaspFi more visible to you and help you make data-driven decisions about which yield offers, protocols and assets to choose.
No. Putting your money into DeFi is often analogous to investing, and any investment, whether in DeFi or traditional finance has a non-zero chance of its value dropping to 0. This has always been true even for the “safe haven” investments such as precious metals, real estate and the currencies people use to buy stuff. You should always use your own best judgement to decide whether any investment (or non-investment) is worth the risk to you.
Below you will find the always up-to-date reference table for individual Trust Score parameters. We’re always open to feedback about our Trust Score system, so feel free to drop us a line at [email protected] if you have any questions or suggestions for improvement.