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FAQ

1. Are there any live Credora ratings being used atm?​

Ratings are now live in Morpho. Spark ratings are currently being worked on and will be live soon.

2. How can I gain access to the Credora API?​

  • We are relaunching the API during Devconnect, limited to the vault ratings endpoint.
    Market & asset ratings will follow shortly, and the expansion in vault coverage will continue as our agreements with curators progress.
    Accessing Credora APIs requires whitelisted access which can be requested on this Google Form.

3. What sort of risk does Credora aggregate?​

a. At the Asset Token Level​

  • i. Asset Quality
  • ii. Custody Risk
  • iii. Network Risk
  • iv. Reserve Management
  • v. Regulatory Cover
  • vi. User Rights
  • vii. Audit Quality
  • viii. Contract Maturity
  • ix. Collateralization
  • x. Reserves Transparency
  • xi. Peg Track Record
  • xii. TVL
  • xiii. Governance

b. At a Loan Pair Level​

  • i. Liquidation Probability:

    • Pair Price Volatility
    • Market Extreme Tail events
    • Collateral Default
    • Allocated Positions
    • User Rebalance Profile
    • Market Characteristics (LTV, LIF)

  • ii. Bad debt given Liquidation Probability:

    • Base Liquidity
    • Pair Usage across Lending Protocols
    • Pair Usage in the Rated Protocol
    • Volatility of the price pair

  • iii. Oracle

  • iv. Protocol

c. At a Vault Level​

  • i. Markets PSL
  • ii. Curator
  • iii. Governance
  • iv. Guardian
  • v. Timelock

4. What is the benefit of using Credora’s risk ratings?​

  • Risk transparency and enhanced ecosystem trust
  • Informed risk-reward decision making
  • Elevated DeFi market standards
  • Early warnings on changing risk profiles
  • Risk/Reward adjusted strategies

5. Who benefits from Credora’s risk ratings?​

  • Vault Curators
  • End Users
  • Lending Protocols
  • Yield Aggregators
  • CEXs
  • Asset Issuers

6. How often are our risk ratings updated?​

All vault, market, and asset ratings are refreshed daily.

7. What does the rating process look like?​

  • An initial call to discuss what needs to be rated, explore use cases, and determine if Credora is a good fit.
  • Rating coverage analysis to determine what assets/markets are exposed to and how prices are determined.
  • Quantify various factors of risk with methodologies, simulations, and models.
  • Compose the final ratings.

8. What are the main drivers of a rating?​

  • Allocation distribution
  • Pair type (stable to stable) or (stable to volatile)
  • Oracle Type
  • Returns Volatility
  • Tail Returns Distribution
  • LIF, LLTV
  • Collateral PD, LGD
  • Liquidity:
    • Base Liquidity across DEXs at X% slippage
    • Pair usage across other Lending Protocols
    • Ratio between recent daily volatility and the volatility under extreme market events
  • Total Borrowed Amount in the Market

9. How does the old Credora methodology compare to the new methodology?​

The methodology itself remains unchanged; we’re following the same steps as before. The only modification is an update to the rating cut-off tables. We made the change because we will publish assets on the same scale, and it brought some positive differentiation in that capacity.