One of the lessons learned in crypto the last few years and especially in the current challenging world is the difficulty to find a trustworthy DeFi project. If we want to reach mass adoption, “Do Your Own Research” is not a satisfying answer for non specialized people that we want to bring to the DeFi world.
If you agree with this statement, what about defining how to proceed?
Quick first thoughts from my side are the following:
→Define assessment criterions for:
The creators of the DeFi project:
-Have all devs an verified ID in Instapass?
-Have the leader of the projects disclosed their name and online professional networking presence (LinkedIn, Xing, Viadeo)?
-What is the legal entity hosting the project: name, type of legal entity, country, registration number?
-What are the spondors of the project?
Smart contract information:
-Is the project a fork of another project? if Yes, which one(s)
-Is the code Open source?
-Is there a Bug Bounty Program?
Safety/Reliability assessment of the project:
-What about defining for DeFi some safety critical software ground rules as there are for automotive, medical, railways, nuclear and aerospace? (cf. https://www.researchgate.net/publication/325554935_Safety_critical_software_ground_rules for the standards I think about). In all cases there should be some Failure Mode and Effect Analysis done, risks and what is made to mitigate these risks.
→Define the way ahead based on these criterions:
This assessment should be done by anyone having the competencies to perform part or all of the assessment (here we should define as well criterions to become a “ validated auditor”). There could be then for these DeFi projects a risk label given voted by the auditors (published on https://www.radixlist.com/ ? on the projects’ websites?).
This is just an idea. This would not be useful only for the Radix DLT ecosystem but this could be a competitive advantage for the Radix DLT ecosystem, and as for Crypto, these DeFi critical software guidelines could be part of the Radix DLT contribution to the DeFi world.
What would you think about that?
Thanks in advance for the feedback.