Monday will see decentralized finance or DeFi protocol Compound Treasury Annouced that it received a credit rating of B- from S&P Global Ratings. Compound explained that this is the first time an institution-based DeFi protocol has been rated by a major credit bureau. The S&P Global Ratings’ investment suitability scale All rangesFrom AAA (extremely solid) to D, (in default). Scores of B- indicate that the issuer is capable of meeting financial obligations, but there are still vulnerabilities.

Regarding Compound’s rating specifically, S&P Global cites the Stablecoin regulation is uncertainThese include (USDCThe Treasury has a “limited capitalbase” and stablecoin to fiat convertibility risk. There is also a 4.00% return obligation per annum for this decision. Rating agency however says the Compound protocol’s track record of zero losses, measured in USDC, partially mitigates these risks.