CRCI Project Overview
The CRCI initiative is an innovative fundamental analysis research methodology built from the ground up.
Our Approach
Problem
Because of a general lack of resources on how to research DeFi, and the absence of oversight and regulation in the DeFi ecosystem, retail investors are particularly susceptible. As a result, bad actors and product failures are not held to a fiduciary standard.
Using a first principles approach to reviewing DeFi projects, an intelligently weighted point system is applied to important metrics to generate a confidence score (CRCI Score) that indicates a project's potential to execute on desired objectives as transparently as possible.
Solution
​TECHNICAL ANALYSIS
(Trader)​
​Pros:
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Studies historical on-chain data
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Post mortem insights
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Verification of declared intentions
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Cons:
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Lacks context in isolation
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Impact heavily reliant on data volume
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Ignores fundamental and sentiment aspects
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Struggles with illiquid assets
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Relies exclusively on pattern analysis
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Needs constant monitoring
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Interpretations of objective data can vary
FUNDAMENTAL ANALYSIS
(Investor)​
​Pros:
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First line of research (DYOR)
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Direct study of the source material
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Factors operational insights
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Long-term investment consideration
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User auditable field of analysis
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Explores intrinsic asset value
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Offers context beyond trends
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Informs decisions, reduces noise
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Includes balanced technical and sentiment considerations
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Cons:
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Wide variety of influential factors
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Fails at short term price movements
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Time-consuming and complex process
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Interpretations of objective data can vary
​SENTIMENT ANALYSIS
(Speculator)
​Pros:
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Real time social insights
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Helps anticipate trend shifts
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Reflects immediate market reactions
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Cons:
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Triggers FOMO
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Emotion-driven, lacks objectivity
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Prone to groupthink and herding
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Unreliable for market predictions
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Prone to deception and fake news
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Bad actors thrive in this domain
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Lacks context in isolation
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Ignores fundamental and technical aspects
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Difficult to quantify and standardize
The CRCI covers 28 metrics across 8 categories
Proposal
Implementation
1. Social Engagement
Quality of content. How active and engaged the project is across mainstream social channels. Communication, presence, and community awareness. Website provides all expected content.
5. Audits / Track Record
Assessment of public third-party code audits, considering audit cadence congruent with updated products and services. Consideration of the performance / track record of the project. Survey of the public GitHub repo.
2. Communication of Intent
Assessment of the whitepapers and other forms of presentation in terms of communication of the specific problems they are addressing and their path to intended solutions. Measurement of the impression of depth among competitive projects.
6. User Protections
User advocacy. Interactions on the platform are clear. Documentation, guides, education, support. The degree to which the user is protected against unintended actions.
3. Tokenomics
Clarity of the tokenomic model with attention to token allocations, including vesting schedules. Consideration of the token functions. Also an overall assessment of perceived fairness and “rug-ability” exposure.
7. Industry Accolades
Reputation. Notable sources of recognition of actions, initiatives, contributions, awards etc. These may come from the crypto community, the broader crypto industry, or credible external sources.
4. Team / Developers
Publicly visible and trustworthy team and advisors. Declared and/or perceived caliber of domain experience, development expertise, and any industry partners’ combined ability to execute.
8. Cumulative Demerits
Project failures of any kind. Any activity, behavior, misrepresentation, lack of transparency or clarity that may either intentionally or incidentally misdirect or undermine the project’s participants, community, or ecosystem.
Making Sense of DeFi Tokenomics
The standardization of tokenomic models into a comparable format is achieved through the CRCI review process.
By analyzing data from from a substantial number of tokenomic models, the CRCI is able to identify industry trends and detect patterns that could suggest potential exposure to liquidation events by the project team or early investors.
Project A
Project B
Extensive and Concise
CRCI Review Process Documentation
