DevScore

Invest with confidence and wipe out scammers in DeFi

A new key performance indicator for DeFi

How does it feel to blindly follow FOMO masses and invest your hard-earned money in projects that have been launched on a decentralized exchange (DEX)? What's the probability of being "scammed" by the deployer of the smart contract that has an underlying liquidity pool from which you bought the token?

The beauty of crypto is that anybody around the world at any point in time can issue a token on a DEX and anyone can invest in that token. There are no limits to getting funding, and it was never easier to get funding frankly. To answer both questions: 1) It doesn't feel good to invest blindly and "hope" for the best. 2) The odds to run into a scam are pretty high - Cinnamoon estimates it to be at 70% by blindly investing in all projects being launched on a DEX within 24 hours. What if there is a way to 1) have stronger confidence in investing thanks to an on-chain-based key performance indicator (KPI), 2) reduce the probability of being scammed because malicious developers can't prove their quality and good intentions.

DevScore rates the quality of developers

DevScore is a KPI that is calculated by using on-chain-based data. It is a data-driven rating that assesses the quality of a developer on a 100-point scale. Many input parameters from data oracles are being used to calculate the score. Investors can put a lower "investment threshold" on the DevScore and inform their investment decision. We expect investors to require a minimum DevScore for DeFi projects before developers are issuing their tokens. This is a market-based solution and a win:win for developers and buyers:

Legit developers increase their odds to receive even higher funding because they can prove their skills (no lemon market for tokens anymore), while investors have confidence that the developers have shown a strong performance in previous projects.

The DevScore algorithm is not only fed by data oracles. Developers can decide which projects to link to DevTool© and then need to verify through their deployer wallet of previous projects that these projects have been launched by themselves. It is therefore impossible to manipulate DevTool© and the algorithm of DevScore by falsely claiming that successful projects belong to them. What's more, the DevScore algorithm will consider different parameters, including the number of projects launched in the past, that increases the score (higher being better). Developers could simply hide and not link previous projects, however, this would reduce the odds of reaching the minimum required DevScore that investors would like to see before investing.

Cinnamoon clearly expects that incentives for developers to perform well on projects to receive a higher DevScore, and investors' requirements to show a minimum proof of skill, will lead to an equilibrium DevScore in the DeFi market that would indicate a minimum developer quality, e.g. a DevScore of 51 could be indicative of a solid developer, while anything lower might indicate a malicious actor. We think this equilibrium will increase capital allocation efficiency and attract more developers and investors into the DeFi space.