CryptoCompare Launches Industry-First Framework for Assessing Decentralised Exchanges
London, 20th October 2022 - CryptoCompare, the leading institutional digital asset data provider and FCA-authorised benchmark administrator, today announced the launch of its updated Exchange Benchmark, which includes a new industry-first framework for ranking and assessing the risk associated with decentralised exchanges (DEXs).
Recently, trading activity on DEXs has skyrocketed, in certain instances surpassing volumes of Centralised Exchanges (CEXs). As such, CryptoCompare’s Exchange Benchmark will now assess both centralised and decentralised exchanges from a risk perspective. Over 130 CEXs and 30 DEXs are ranked (AA-F) to identify the lowest-risk trading venues for market participants.
The DEX Benchmark will function independently from the Exchange Benchmark and features a unique methodology that covers 60+ metrics under the following areas: Security, Community, Transparency, Governance, Market Quality and Incentives.
Uniswap v3 received the highest score in the first DEX Benchmark and is the only decentralised exchange with an A rating. Bitstamp achieved the highest score in the CEX Benchmark achieving an AA rating.
"CryptoCompare’s Exchange Benchmark has become an essential tool for institutional investors navigating the digital asset landscape. Given the increased adoption of decentralised exchanges, the latest benchmark has been expanded to encompass an industry-first framework for assessing the risk of this new type of trading venue. This offering complements our trusted methodology for assessing centralised exchanges, providing clarity and encouraging transparency in maturing digital asset markets” said Charles Hayter, CEO and Co-Founder of CryptoCompare.
"We are delighted to be named CryptoCompare’s top-rated exchange. As the gold standard in exchange rankings, CryptoCompare’s designation reflects our commitment to the multitude of factors necessary to make crypto investing accessible to all. This year we’ve continued our unwavering focus on compliance and regulation, along with creating new educational and pricing initiatives to help mainstream audiences confidently approach digital assets. Benchmarks like this play a pivotal role in helping investors to make informed choices, and grow the market for everyone." said Jean-Baptiste Graftieaux, CEO of Bitstamp.
"Trust and security are top priorities at Uniswap Labs. Safe, secure DeFi is an important improvement on today's financial systems and creates fairer, more accessible markets.” -- Mary-Catherine Lader, Chief Operating Officer at Uniswap Labs.
CryptoCompare’s Exchange Benchmarks are backed by thousands of research hours and encompass over 160 qualitative and quantitative metrics to develop a comprehensive score for each exchange. The report is updated twice annually to reflect the fast-changing digital asset landscape. All exchange rankings are available via the CryptoCompare website, alongside the methodology detailing how the grades are calculated.
Interested in licensing CryptoCompare’s rankings for use within commercial products? Contact firstname.lastname@example.org to learn more or visit data.cryptocompare.com