Stablecomp
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The Matrix
Choosing vaults in DeFi has never been easier
The matrix makes the job of selecting stablecoin staking opportunities quick and easy.
The risk-return matrix is at the core of Stablecomp.
It contains all the return opportunities on stablecoins cleary displayed in a matrix position and positioned based on risk and return.
Columns represent the RISK, sorting it into LOW, MEDIUM and HIGH levels.
Vaults are assigned to each column after a quantitative and statistical analysis of several parameters held by Stablecomp.
Rows represent the RETURN, sorting vaults by decreasing APY calculated in an homogeneous and comparable way.
Risk analysis
Our developers have found 3 fundamental parameters to assess the risk of a DeFi project.
1. 🔎 Audit of contracts
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This is the main parameter to be considered in a global project evaluation.
The Stablecomp team mainly evaluates the credibility of auditors and the vulnerability of smart contracts. Not all audits have the same quality and many audit processes have critical issues.
2. 🔒 Dominance of Value Locked (DVL)
🔒
Total Value Locked (TVL) represents the value of the assets that are currently being staked in a specific protocol. It is an important parameter to understand the health of the project and its self-sustainability.
Each blockchain has its own TVL, being the sum of all the TVLs of the DApps built on it.
We believe that the TVL alone is not enough to assess the importance of a certain DApp.
This is the reason that Stablecomp has created a powerful concept that what we call DVL, the Dominance of the Value Locked.
The DVL is the percentage ratio between the TVL of the DApp and the TVL of the whole given blockchain.
Since the cryptocurrency market is very volatile and market trends are often irregular and different blockchains enjoy of different relevance and TVL, we opted to base our analysis on dynamic data relative to the importance of the blockchain the project has been built on rather than on static data which does not reveal much about the importance and trustworthiness the project has in its reference blockchain.
Therefore, we have framed 3 risk zones relating to the dominance of value locked:
Low Risk
Medium Risk
High Risk
Dominance of VL: ≥4%
Dominance of VL: ≥0.5%
Dominance of VL: <0.5%
3. ⏳Longevity
⏳
According to the Stablecomp team, the lifetime of a project is essential to understand its level of risk. Most of the "rug pulls" on DeFi platforms occur in the first 60 days of the project's life.
For this reason, Stablecomp evaluates longevity as a parameter, too.
One again, we have framed 3 risk zones.
Low Risk
Medium Risk
High Risk
Longevity: ≥4 months
Longevity: ≥2 months
Longevity: <2 months
Performance analysis
The analysis of the yield is very simple: the matrix will show the vaults with the annual returns in a decreasing manner, from the highest to the lowest.
Since rewards are distributed or expressed in different ways in the various DeFi platforms, Stablecomp will standardize them all, ordering by decreasing APY calculated in an homogeneous way to make it easy for the user to compare.
Last modified 8mo ago