Permissionless framework for quantifying the quality and risk of open finance.
To provide a neutral and all-encompassing opinion on open finance protocols, Prime Rating has developed a permissionless and modular framework that utilizes DAO best practices and decentralized data storage to operate as independently from any centralized entity as technologically possible.
By being permissionless, Prime Rating aims to be more resilient, neutral, and able to leverage the wisdom of the crowd. All ratings reports, templates and other documents are publicly available and can be accessed non-exclusively by anyone with an internet connection, making Prime Rating a public good for the benefit of the systemic advancement of open finance.
Prime Rating has three main objectives:
To increase transparency in the open finance (or web3) ecosystem and educate users, investors, and DAO's about the quality and risk associated with other protocols.
To create an non-corruptible, efficient and open-source process for permissionless rating
To create verified, unbiased, high-quality reports representing the actual quality and risk of these protocols (focusing on Ethereum-based DeFi and Metaverse projects)
Prime Rating Building Blocks
The following building blocks make Prime Rating possible:
Prime Rating dApp (Beta version): The rating app provides a consolidated overview of all protocols that have been reviewed by Prime raters.
The benchmark (A+ to D) is calculated by using the average score of both technical and fundamental reports (50/50), whereas the fundamental score can consist of multiple reports for one and the same protocol. Allowing numerous raters to review the same protocols increases veracity and ensures the scores are kept up-to-date.
The data is also accessible via an API. Moreover, the app provides a list of raters that have contributed to Prime Rating and lets anyone transparently review the reports that make up the rating scores.
Prime Rating Backend (Beta version): Prime Rating's backend is build in a trustless manner using IPFS to store all reports (in .pdf). In its final state, the backend will function fully automated and without any human interaction, making the framework fully permissionless and trustless, only governed by the DAO.
Report Templates: Prime Rating relies on a set of report templates accessible to anyone with an internet connection. These templates are the standard format through which rating scores are created and updated. The templates are improved on a regular basis and also governed by the DAO.
Prime Rating Governance: Prime Rating Governance is at the core of the framework and responsible for accepting/rejecting reports, thus ensuring high quality AND veracity of the rating scores.
The DAO currently uses Snapshot to facilitate voting. Votes are token-gated, allowing community members with a certain threshold of Rating Experience (RXP) to participate in the vote.
Prime Community: The community is at the heart of the DAO and has a voice in all important matters. Decision making is done through discussion to find consensus and finally via voting.
This is a bottom-up project where anyone is welcome to join and participate to help Prime Rating achieve its mission.
Communication Channels:Discord is used for communication. PrimeDAO Discord uses Collab Land to allow different tiers of Prime Raters to autonomously claim their Rank in the PrimeDAO Discord Channel.
Token Economics: Prime Rating contributors are rewarded with USDC + D2D tokens. In addition, there is a reputation system in place, which lets raters level up based on their rating experience and contributions to the DAO.
Prime Rating Scale
To provide a simple and comparable opinion, protocols are rated on a scale from A+ to D depending on the aggregated outcome of smart contract quality and fundamental review.
If you want to contribute in other ways, awesome! Reach out to us via Discord and we will make sure you find the right spot for you to contribute.
Average score > 85% & Min score > 70%
Average score > 75% & Min score > 60%
Upper medium-grade protocol
Average score > 60% & Min score > 40%
Average score > 50% & Min score > 35%
Lower medium grade protocol
Average score > 40% & Min score > 25%
Average score > 35%
Protocol not retable
Average score < 35%
Roles & Tokens
Individual or group that creates Rating reports. Raters can have different levels (e.g. novice, graduate, master, etc.)
Individual that votes on Rating reports
Squad Lead within PrimeDAO, responsible for any of the products
Reputation or REP is the non-transferable governance power of PrimeDAO
Rating Experience (RXP)
RXP represents rating experience, allowing raters to level up and unlock governance power, new tasks or rewards. RXP is based on the ERC-1155 standard, it's not an asset and cannot be bought or transferred (only earned through participation).
D2D is the native coordination token of PrimeDAO. It can be used as an exchange of value within (or outside) the Prime ecosystem