Updated: November 2025 • Reading time: 10–12 mins
TL;DR: Use this 10-step checklist and scoring rubric (0–100) to decide if a DeFi or earning platform deserves your attention. Start small, verify yield sources, and never skip the withdrawal test.
How to Use This Guide
This guide helps you assess DeFi protocols (lending, staking, vaults), CeFi apps (custodial yield), and automation tools. Score each category to get your own “risk score.”
SPI DeFi Assessment Rubric (0–100)
Each platform is scored across 10 criteria. Add your own notes and calculate a weighted total.
| Category | Weight |
|---|---|
| 1) Team Transparency & Track Record | 15% |
| 2) Legal / Regulatory Posture | 10% |
| 3) Smart-Contract & Security Audits | 15% |
| 4) Yield Source Clarity | 15% |
| 5) Tokenomics & Emissions | 10% |
| 6) Liquidity Depth & Exit Options | 10% |
| 7) Communications & Transparency | 7% |
| 8) Ponzi / Hype Red-Flags | 8% |
| 9) Withdrawal Test | 5% |
| 10) Ongoing Performance Tracking | 5% |
The 10 Steps
1. Verify the Founders
Look for verifiable identities, LinkedIn, GitHub commits, or prior DeFi projects. Avoid fully anonymous teams without a public code footprint.
2. Check Regulatory Standing
Look for an incorporated entity or legal disclaimers. If a platform restricts U.S. users or lists jurisdictions, that’s often a sign they’re attempting compliance.
3. Audit the Smart Contract
Always read audit summaries. Prioritize firms like CertiK, Trail of Bits, or OpenZeppelin. Ensure issues are marked as “Resolved.”
4. Review Tokenomics
Understand the token’s emission schedule, unlocks, and incentives. Overly high rewards often equal inflation and risk of dumps.
5. Assess Liquidity
Check TVL (Total Value Locked) trends, DEX liquidity depth, and how easily users can exit. Shallow liquidity equals potential slippage or freezes.
6. Watch for Ponzi Indicators
Be skeptical of guaranteed daily ROI, forced compounding, or referral-first marketing. Legit platforms explain real yield sources clearly.
7. Evaluate Community & Transparency
Open Discord or Telegram — are questions answered clearly? Transparency builds trust. Censorship and hype-only chatter are red flags.
8. Test Small Before Going Big
Start with a small test deposit. Track time to confirm deposits, withdrawals, and support response. Never commit large funds initially.
9. Track Performance Over Time
Record APY, incidents, and fee changes weekly. Sudden yield spikes often signal unsustainable models or manipulative liquidity cycles.
10. Stay Updated & Reassess
Recheck your platform every few months. Governance changes, liquidity drops, or leadership exits can shift your risk rating fast.
Worked Example: “AlphaLend”
Example of how a real DeFi protocol might score under this framework:
- ✅ Strong audits and multi-sig control (8/10)
- ✅ Clear yield from borrower interest (9/10)
- ⚠️ Moderate legal clarity, offshore registration (7/10)
- ✅ Transparent updates and deep liquidity (8/10)
Final Score: 84/100 (Trusted) → Suitable for small-to-moderate allocation.
Recommended Tools
- DeFiLlama — Track TVL and protocol growth.
- CoinGecko — Check token liquidity, supply, and exchanges.
- Audit databases — Browse past audits and unresolved issues.
- Etherscan / BaseScan — View contract ownership and history.
- SPI Research Stack — Combine alerts and performance tracking.
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