DefiLlama and Forgd Launch Institutional Token Grading System

DefiLlama, in partnership with token advisory platform Forgd, has launched a Universal Token Rating (UTR) dashboard that grades 128 of the 149 listed tokens using an AAA‑to‑CCC scale. The system multiplies a token’s disclosure score by its performance score, producing a composite rating out of 100.

How the Rating Works

Both scores range from 0 to 10. A token must score at least 6 on each axis to qualify for the top AAA tier (composite score ≥ 60). The grades are defined as follows:

• AAA: 60 – 100
• AA: 40 – 59
• A, BBB, BB, B: progressively lower bands
• CCC: lowest tier, indicating major weaknesses

Disclosure assessment examines tokenomics, insider wallets, and commercial arrangements. Performance assessment looks at liquidity, spreads, venue coverage, market‑maker conduct, and how liquidity behaves during volatile periods.

Current Rankings

• Uniswap (UNI) – AAA, composite 60.80 (disclosure 7.87, performance 7.72)
• Meteora – AA, composite 58.48
• Curve DAO – A, composite 53.32

Market‑Maker Monitoring

Forgd monitors over 500 market‑maker engagements, using reports and API data to evaluate volume, depth, uptime, and compliance with agreed targets. The system checks whether liquidity is sustainable or merely supported by temporary incentives.

Limitations and Risks

Both DefiLlama and Forgd stress that an AAA rating does not guarantee price appreciation or risk‑free status. The methodology does not assess cybersecurity, governance failures, or broader market conditions. Ratings are updated continuously, and missing disclosures lower the disclosure score.

Implications for Institutional Investors

The AAA‑to‑CCC format aligns with familiar credit‑rating scales, helping institutions quickly screen tokenized assets. However, the grades are not equivalent to traditional credit ratings and should be used as a screening tool rather than an investment recommendation.