Today, we are proud to announce Web3SOC: a clear classification system for both institutions and organizations, created to foster a secure and collaborative decentralized finance ecosystem. This framework is the result of months of work alongside leaders in both ecosystems, including Uniswap Labs, Morpho, Maple Finance, Kiln, Steakhouse Financial, L1D, and Secureum. As the industry evolves, the intention is that this framework does so in tandem.
For Institutions
This framework provides a structured methodology to assess the investment suitability of DeFi organizations by evaluating areas like governance, security, financial stability, and regulatory compliance. This allows institutions to conduct due diligence with a rigor comparable to that of traditional finance.
For DeFi Organizations
Web3SOC acts as a self-assessment tool to gauge an organization's readiness for institutional partnerships, providing actionable insights to address any deficiencies. By following the standards outlined in this framework, organizations can act to better meet institutional expectations.
Key Evaluation Areas
Web3SOC evaluates organizations across four fundamental domains:
- Operational: Assesses the people, structures, and processes that factor into day-to-day stability.
- Financial: Pertaining to an organization's economic design and capital resilience.
- Security: Analyzes infrastructure resilience and the organization's ability to prevent hacks.
- Regulatory: Focuses on ensuring the organization meets legal and compliance obligations in relevant jurisdictions.
Maturity Tiers
To benchmark readiness at different stages, organizations are categorized into maturity tiers. These tiers offer a clear classification of how far an organization has progressed towards being 'institution-grade':
- Tier 1: Enterprise - High maturity, built for trust.
- Tier 2: Established - Consistent practices, lower risk
- Tier 3: Emerging - Demonstrated progress, moderate maturity
- Tier 4: Nascent - High risk, limited infrastructure
Each tier provides a method for both underwriters and organizations to gauge how mature an organization is. Each tier provides a method for both underwriters and organizations to gauge how mature an organization is. The Web3SOC framework is a living document. It will continue to adapt alongside the evolution of the industry.
How To Use Web3SOC
Web3SOC is designed as a practical tool for both organizations and institutions. Let's explore how each group can benefit from this framework.
For Institutions
Incorporate Web3SOC into your due diligence process to assess risk with clarity, structure, and confidence. Get in touch to learn more about how Web3SOC can enhance your internal processes.
For Organizations
Work with Cantina to understand your current standing and what’s needed to earn institutional trust. Get a score today.
This framework is designed to serve the broader ecosystem. It reflects a shared commitment to strengthening institutional standards across Web3.