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Hacken introduced a new framework to assess security, financial logic, and systemic risk across crypto yield products, providing investors with a verifiable gauge of sustainability in volatile markets.<\/p>\n
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According to a press release shared with crypto.news on Nov. 10, Hacken has introduced a new framework designed to evaluate the risk profile of crypto yield products. The Yield Risk Score, or YRS, assesses three dimensions: technical security, financial sustainability, and systemic dependencies.<\/p>\n
The initiative follows the Hacken Trust Summit 2025 in New York, which brought together leaders from Nasdaq, Moody\u2019s, S&P Global, Citi, JPMorgan Chase, and A100x to discuss the convergence of digital assets and traditional finance.<\/p>\n
Hacken positions the YRS as the first standardized metric allowing investors to gauge the safety and stability of yield-generating crypto protocols in a market still prone to high-profile failures.<\/p>\n
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Hacken\u2019s push for this new metric is a response to what the firm terms a systemic failure that has cost investors billions. According to its own research, yield providers are the single most significant point of failure in the crypto ecosystem, accounting for a staggering 55% of all industry losses.<\/p>\n
Their data indicates that 330 different yield protocols have collectively vaporized $49 billion over the past five years, a trend underscored by the recent $93 million collapse of Stream Finance.<\/p>\n
\n\u201cHacken\u2019s Yield Audit introduces a new trusted layer \u2014 one that retail investors can rely on to make informed decisions and that institutional investors require to meet due-diligence standards,\u201d the Hacken team said in the statement.<\/p>\n<\/blockquote>\n
To build that trust, the Yield Risk Score dissects a project across three critical fronts. The first stage focuses on Security and Infrastructure, evaluating custody solutions, smart contract integrity, and operational security to produce a Technical Risk Score.<\/p>\n
The second stage delves into Financial Sustainability, stress-testing the economic logic and yield sources to generate a Financial Sustainability Score. Finally, the framework examines Dependency and Systemic Risk, assessing vulnerabilities from oracles, cross-chain bridges, and custodians to output a Dependency Risk Score.<\/p>\n
These three metrics are combined into a single, comprehensive YRS, reported on a familiar D-to-AAA scale. Beyond the score, Hacken provides continuous monitoring through its Extractor platform, allowing projects to maintain transparency without disclosing proprietary strategies.<\/p>\n