Security Rating Methodology
The explanation on how the security rating is calculated.
Pramb employs a comprehensive security rating methodology to assess the risk associated with each DeFi protocol. This rating, ranging from 1 to 100, provides a standardized measure of a protocol's security posture. A higher security rating indicates a more secure protocol with a lower likelihood of hacks, bugs, or exploits.
The Security Rating is calculated based on five key factors, each with a specific weight:
Project Implementation (10%):
Project nature and technical complexity
Roadmap and planned future changes
Underlying blockchain technology
Project Operation (15%):
Project age and operational history
Total value locked (TVL)
Existing insurance coverage on funds
Team Qualification (5%):
Team anonymity or transparency
Team experience, especially in programming and smart contract development
Overall operational and management capabilities
Audit (40%):
Transparency and scope of audits
Findings and vulnerabilities identified in audits
Reputation and trustworthiness of auditing firms
Frequency of audits and updates
Code (30%):
Open-source nature of the code
Existence of a bug bounty program
Issues raised on GitHub or by the community
Quality of documentation and testing
Code readability and architecture
Oracle usage and security
Layer-2 solution adoption
Integration with external protocols
Access control management
Security administration practices
Use of multi-signature wallets
This multi-faceted approach allows Pramb to assess the overall security posture of each protocol, taking into account various factors that contribute to its resilience against potential risks. The resulting security rating helps users make informed decisions about their DeFi investments and choose the most secure platforms for their assets.
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