Review Methodology

How we evaluate and score every crypto lending platform on CryptoLendingHub.

Our Approach

Every platform on CryptoLendingHub is evaluated using the same consistent framework. We do not accept payment for reviews, and affiliate relationships do not influence ratings. Our goal is to give you the information you need to assess risk and make your own decision.

Risk Score (1-10)

Each platform receives a risk score from 1 (lowest risk) to 10 (highest risk). This is our editorial assessment based on the factors below — not a guarantee of safety.

1. Security & Audits (Weight: 25%)

  • Has the protocol been audited by reputable firms? (Trail of Bits, OpenZeppelin, Certik, Consensys)
  • Number and recency of audits
  • History of exploits or security incidents
  • Bug bounty program existence and size

2. Track Record & Longevity (Weight: 20%)

  • How long has the platform been operating?
  • Total value locked (TVL) and trend direction
  • Survived bear markets and stress events?
  • For CeFi: did they survive the 2022 crypto lending crisis?

3. Transparency (Weight: 20%)

  • Is the protocol open-source? (DeFi)
  • Proof of reserves published? (CeFi)
  • Clear documentation of rates, fees, and liquidation terms
  • Team identity — are founders and key personnel publicly known?

4. Regulatory Status (Weight: 15%)

  • Registered or licensed in any jurisdiction?
  • Compliance with applicable regulations (SEC, MiCA, FCA)
  • Any pending regulatory actions or investigations?

5. Insurance & User Protection (Weight: 10%)

  • Custodial insurance coverage
  • DeFi insurance options (Nexus Mutual, InsurAce)
  • Liquidation penalty reasonableness
  • Safety module or reserve fund

6. Collateral Model (Weight: 10%)

  • Overcollateralized (lower risk) vs undercollateralized (higher risk)
  • Rehypothecation practices (CeFi)
  • Isolated vs cross-collateral markets

The Crypto Lender Safety Index (0–5)

For comparisons focused specifically on how regulated a lender is (such as our Crypto Lender Safety Index comparison), we score each lender 0–5 on six checkable criteria — this score is the Safety Index. Every input is a verifiable fact — a license number, a custody term, a bankruptcy record — not an opinion, so the ranking is reproducible: apply the same criteria to the same facts and you reach the same result. Licensing and custody carry equal, heaviest weight, because both determined who protected depositors in 2022.

1. US Lending License / Supervised Status (Weight: 25%)

NMLS-registered lender with state lending licenses (full) vs. a single/other registration (partial) vs. no lending license or unlicensed by design (none).

2. Jurisdiction & Legal Recourse (Weight: 15%)

US-domiciled regulated entity vs. offshore-but-registered vs. no accountable legal entity (a protocol or DAO).

3. Custody Model (Weight: 25%)

Segregated/qualified custodian with no rehypothecation, or non-custodial by design (full) vs. custodied with disclosed rehypothecation (partial) vs. opaque custody (none).

4. Consumer Disclosures & Liquidation Transparency (Weight: 15%)

Clearly disclosed loan terms and published liquidation mechanics (both), one of the two, or neither.

5. Rate Transparency (Weight: 10%)

Fixed and disclosed, transparently variable (e.g. an on-chain utilization curve), or opaque/discretionary.

6. 2022 Track Record (Weight: 10%)

Operated without freezing withdrawals or did not operate as a lender then (full), stress without a freeze (partial), or froze withdrawals / entered bankruptcy (none).

What We Evaluate Beyond Risk

  • Rates: Current lending APY and borrowing APR, how they compare to competitors, rate stability
  • Supported Assets: Which cryptocurrencies can be lent or used as collateral
  • LTV & Liquidation: Maximum loan-to-value ratios and liquidation mechanics
  • Chain Support: Which blockchains the protocol operates on (DeFi) or supports (CeFi)
  • User Experience: Interface quality, documentation, customer support
  • Unique Features: Flash loans, rate switching, no-KYC, mobile apps, debit cards

How We Keep Reviews Current

Crypto lending platforms change rapidly. We review and update each platform profile at least quarterly, and immediately when material events occur (security incidents, rate changes, regulatory actions, feature launches).

Every article displays a "last updated" date. If you notice outdated information, please contact us.

Limitations

Our risk scores are editorial assessments, not guarantees. Crypto lending carries inherent risks including smart contract vulnerabilities, market volatility, regulatory changes, and counterparty failure. Past performance and current safety records do not guarantee future results.

We encourage you to do your own research and never lend or borrow more than you can afford to lose. See our full affiliate disclosure and risk disclaimers on each review.